Legally, these contribute to your taxable investment income and get taxed between 15%-33, depending on your income. What you need to declareĬanadian residents must declare additional earnings made from investing winnings on T3, T5, and T5013 forms. However, if your gambling winnings result in interest or dividends, from depositing in a savings account or investing in dividend-paying stocks, you're required to pay taxes on this income. Gambling isn’t considered a business, and most Canadians don’t make a living on their winnings.Īccording to Paragraph 40(2)(F) of the Income Tax Act, gambling winnings, whether from online or land casinos, sports betting, or horse racing, are tax-free for Canadians, no matter the province. Gambling-related activity can't be taxed because it’s not a regular source of income and isn’t derived from employment, property or other viable sources.
