Winning the lottery is a dream for many people, but after the excitement calms down, the question that often follows is: “How much tax will I have to pay?” The answer isn’t the same across the globe—different countries have different rules. Whether you buy a ticket in person or online through a platform like lottoland-lottery, understanding how taxes work in various places can help you avoid surprises.
Let’s start with the United States. If you hit the jackpot there, be prepared to share a chunk of your winnings with the government. Lottery prizes over a certain amount are subject to federal tax (usually 24% right off the bat), and depending on where you live, state taxes can take even more—sometimes up to 13%. For example, New York has one of the highest state taxes on lottery winnings.
In contrast, many European countries take a different approach. In the UK, for example, lottery winnings are not taxed at all. If you win the lottery there, you get to keep every penny, although you could be taxed later if you give large gifts or pass the money on when you die (this depends on inheritance tax rules).
Germany and Austria also let you enjoy your winnings tax-free right away. However, if you invest those winnings and earn money from them, that income will be taxed. This is a common theme in countries that don’t tax lottery wins directly—they usually tax the income or interest you make afterwards.
In Spain and Portugal, lottery winnings are taxed, but only if the prize is over a certain amount. In Spain, for example, any amount over €40,000 is taxed at 20%. So, if you win €100,000, you’ll pay tax on the €60,000 that goes above the threshold.
Australia also doesn’t tax lottery winnings. Whether you win a small prize or a huge jackpot, the full amount is yours. However, as in many tax-free countries, any money you make from using the winnings (like renting out a house you bought with your prize) will be taxed.
Each country has its own rules, so if you're playing internationally or online, it's good to check how the rules apply where you live. And as always, it might be a smart move to talk to a tax professional after a big win. Better to be prepared than caught off guard!