Are you a professional player looking to understand how gambling taxes work in Canada? Then you definitely need to keep reading. If you make a steady income from online gaming, you will have to pay taxes on your earnings, furthermore, you need to know that taxes differ per province in Canada.
Understanding Taxes: A Breakdown Per Province
Here’s a quick recap, gambling winnings are not taxable in Canada unless you’re a professional player. If you’re just playing for entertainment, that means your winnings are free and clear.
Are gambling taxes in Canada different per province?
We’re going to get straight to the point here, yes, each province has its own set of rules.
Technically, there is no specific gambling tax legislation in Canada. If you are a professional gambler and earn interest on your gambling winnings, you must include those winnings as part of your income tax, (since your gambling winnings are a stream of income, they inevitably have to be taxed). In terms of “income tax,” in Canada, it differs between provinces.
Gambling Tax Laws by Province in Canada 2024
Please note, the below figures are accurate as of March 2024.
Disclaimer: We still advise that you consult with a tax practitioner.
Below, we’re going to break it down per province:
1. Ontario:
- One tax bracket
- Tax amount: between 5.05% and 13.16% (depending on the amount)
- In this province, casinos are licensed by the Alcohol and Gaming Commission Ontario (AGCO)
2. Quebec:
- One tax bracket
- Tax amount: 14% tax up to $49,275
- The more you win, the more your tax payment increases
- If you’re a professional gambler, you pay 14% of tax on your first $49,275 of your income, and then more over the course of the year
3. Alberta:
- Four tax brackets
- Tax amount: minimum is 10%, up to the first $142,292
- Highest tax is 15% for amounts over $341,502
Note: In this province, the tax percentage is slightly friendlier to professional players who are above the six-figure threshold. The tax percentages apply across Calgary online casinos and other parts of Alberta.
4. British Columbia:
- Seven tax brackets
- Tax amount: starts at 5.06% for the first $45,654
- Maximum tax is 20.50% for amounts over $240,716
Note: The tax percentage in this particular province is among the highest for high-income earners.
5. Manitoba:
- Three tax brackets
- Tax amount: There is a 10.80% tax up on your first $36,842 of earnings
- Then, 12.75% is taxed between the first threshold
- A further tax is implemented from $79,625 with a limit of 17.40% on anything above this amount
6. Saskatchewan:
- Three tax brackets
- Tax amount: starts from 10.50% on the first $49,720 of income
- This increases to 12.50% from $49,721
- It’s capped at 14.50% on any amount from $142,058 onwards
7. Nova Scotia:
- Five tax brackets
- Tax starts at 8.79% on the first $29,590
- The highest is 21% on any amount over $150,000.
8. New Brunswick:
- One tax bracket
- Tax amount: between 9.4% and 19.5%
- The maximum percentage is on earnings above $176,756
9. Prince Edward Island:
- Three tax brackets
- Tax amount: starts at a rate of 9.8% tax on the first $31,984 of your income
- If you earn over the first threshold (up to $63,969), then you will pay 13.8% tax
- The final and maximum amount is 16.7% for anything over $63,969
10. Newfoundland and Labrador:
- Six tax brackets
- Tax amount: ranges from 8.7% to 21.8%
- The steep 21.8% tax only applies if you are earning above $1,059 million
How Can You Withdraw Money from a Casino?
There are many ways to withdraw your money from a Canadian casino. If you’re looking for a more traditional method, something like a bank wire or a check in the mail could work.
For a digital method, an e-wallet such as Skrill might be more convenient and quicker. Keep in mind that if you’re well-versed with cryptocurrency, that’s likely to be the fastest and cheapest way (in terms of fees) to move money in-and-out of an online casino.
Crypto Gambling Taxes: How Does it work in Canada?
If crypto is your thing, we recommend top Canadian casinos that offer cryptocurrencies as a deposit method. Just note that you can deposit using crypto at most casino sites in Canada, with the exception of Ontario.
Now for some good news; if you withdraw your earning using crypto, you don’t have to pay gambling taxes. If you earn interest on your winnings after the fact, then unfortunately, the tax man will come knocking and you’ll have to pay. There typically are other small fees involved with crypto transactions, we advise you to take a close look at the terms and conditions, before you try to cash out.
Can you write off gambling losses in Canada?
You can if you are a professional player. Since gambling winnings are not taxed by the provincial or federal government, there is no need to track gambling losses. Losses would only be useful to write off from winnings if there was tax on the winnings (as in the United States). In that case, you could possibly then lower your tax burden by subtracting losses from winnings.
What happens if a Canadian win’s money in Vegas?
If a Canadian wins money in Vegas, they’re going to have to pay taxes to Uncle Sam and the US government. In the United States, you’re looking at about 50% tax on winnings. If you win anything over $1,200, the place where you win will withhold 30% of your profits for the government. Later, when you file your taxes, you can then get money back or top up to pay whatever else is owed.
Now you have a better breakdown of gambling taxes in Canada and how different they are within each province. We’ve got you covered with our top choices for online casinos.
