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How are American or Canadian tourists taxed if they win the lottery while vacationing in Canada or the US?
Can you tell me how American or Canadian tourists are taxed if they win the lottery while on vacation in Canada or the US?
Sure, I can help you with that. In the US, lottery winnings are subject to both federal and state income taxes. The federal tax rate is 24%, while the state tax rate varies by state. As for Canada, lottery winnings are not taxed as income. However, if the winnings generate interest, that interest is subject to income tax.