Gambling tax guide for Canada 2024

What you don't need to pay

As stated in Paragraph 40(2)(F) of the Income Tax Act, Canadians do not have to pay taxes on gambling winnings. This includes earnings from online casino gambling, land-based casino play, online sports betting, and horse race betting. This law extends across all provinces. So regardless of where you play in Canada, you most likely won’t have to pay taxes.

What you will need to pay

However, interest earned on gambling winnings must be declared and taxed. For example, if you win money at a casino and deposit it in a savings account, you will be liable to pay tax on the interest accrued. Or, if you invest your winnings in a stock that pays out dividends, you’ll have to pay tax on these earnings too.

What you need to report

In fact, if you are a resident of Canada, any additional earnings you make from investing your winnings must be declared on your T5 slip, T3 slip, and T5013 form. It must show as part of your investment income, taxable at rates between 15% and 33%, depending on your income level.

You might not receive a T5 form if your investment income is less than $50, but you must report it regardless. Not declaring these earnings can result in prosecution by the tax authorities and heavy fines. These earnings will also need to be shown on your personal income tax, which varies between provinces.

In addition, professional gamblers who earn an income from playing poker or betting on sports must declare gambling winnings as part of their taxable income, which will apply for provincial and federal tax assessments. In this case, all winnings must be included, but losses are deductible from the taxable amount.

Lottery winnings taxes follow the same regulations applied to gambling winnings, as you don’t have to pay any taxes on direct profits. However, as with casino and sports betting earnings, interest on lottery winnings deposited in a savings account or dividends on earnings investment must be declared as income, subject to provincial and federal tax.

Canadian gambling sites provide a range of safe, secure, and convenient payment methods, allowing you to deposit money into your accounts and withdraw winnings quickly.

With Ontario casinos online specifically, sites licensed by the Alcohol and Gaming Commission Ontario (AGCO) will provide payment methods that many Canadians will recognize from day-to-day life, such as Visa, Mastercard, and Interac. Global e-wallets like PayPal, Skrill, and Neteller are also widely accepted.

Many Canadian gambling operators allow you to deposit and withdraw with Interac to cater specifically to Canadian players. You can even use cryptocurrencies in many Canadian provinces, but gambling sites in Ontario do not accept crypto payments.

Deposits with most payment methods will be instant, and there will be no withdrawal fees with the best Canadian online gambling platforms. Most withdrawals will be processed in a few days, with e-wallets and cryptocurrencies traditionally offering the fastest withdrawal times. Depending on your chosen gambling site, some e-wallet and crypto withdrawals are instant.

• Ontario

  Depending on your income, the gambling winnings tax Canada on your interest will range from 5.05% to 13.16% in Ontario. Just like Ontario, Ottawa casino sites, are licensed by the Alcohol and Gaming Commission Ontario (AGCO). For online casinos in Toronto, you may find ON-specific tax information on these sites.

• Quebec

  Professional gamblers and those earning interest from gambling winnings at Quebec casino sites, including Montreal, must pay a 14% tax on their first $49,275 of income and pay more if they earn more through the year.

• British Columbia

  There are seven tax brackets for income in online casinos in British Columbia, including Vancouver, starting with 5.06% for your first $45,654, all the way up to 20.50% for anything over $240,716.

• Alberta

  The only province in Canada with only whole number tax rates, you pay 10% on your first $142,292 in Alberta online casinos. There are four further tax brackets across Calgary casino sites and other parts of Alberta, including a maximum tax of 15% on income of over $341,502.

• Manitoba

  Manitoba has three tax brackets, with the lowest 10.80% on earnings up to $36,842. If you earn between $36,843 and $79,625, you must pay 12.75%. For earnings over $79,625, you pay 17.40% in taxes.

• Saskatchewan

  Professional gamblers in Saskatchewan need to pay 10.50% in taxes on their first $49,720 of income. Then, 12.50% from $49,721 to $142,058, and 14.50%.

• Nova Scotia

  When you include interest from your gambling winnings in your income tax in Nova Scotia, you pay 8.79% on your first $29,590. There are four further tax brackets depending on how much you earn, with a maximum tax of 21% for earnings over $150,000.

• New Brunswick

  The lowest income tax bracket for gambling winnings interest in New Brunswick is 9.4% on your first $47,715. The highest bracket is 19.5% for anything over $176,756.

• Prince Edward Island

  In Prince Edward Island, there are only three income tax brackets for gamblers to consider. Any gambling winnings included in your first $31,984 are taxed at 9.8%. The tax is 13.8% for earnings between $31,985 and $63,969 and 16.7% for anything over $63,969.

• Newfoundland and Labrador

  In Newfoundland and Labrador, the personal income tax rate ranges from 8.7% for your first $41,457 to 21.8% for anything over $1,059,000, with six tax brackets in between.

So now you know that you don’t need to pay taxes on gambling winnings from your online casino, you just need to select a site to get started. But what do the best casinos in Canada offer you? We’ve picked out some key features you’ll see at the best gambling operators in Canada, including at our recommended online casinos.

As noted above, cryptocurrencies are available for deposits and withdrawals at casinos across Canada. However, you can’t use these payment methods in Ontario. It doesn’t matter what type of crypto you use, whether it’s Bitcoin, Ethereum, or Bitcash, you won’t have to pay gambling taxes on any winnings withdrawn with these methods.

As with any other gambling winnings, though, if you earn interest on your winnings following your withdrawal or in case you are a professional gambler, you’ll need to pay taxes on your winnings.

While gambling sites don’t charge fees for most withdrawal methods, transactions with cryptos are a little different. Your gambling site may charge a small price to process the withdrawal request. Likewise, your crypto wallet may also charge you a fee for your withdrawal request. Read the terms and conditions of your crypto wallet and gambling site before claiming your payout.