Anyone who buys a ticket in a state that sells the game can win; citizenship doesn't come into it (we cover that in can a non-citizen win the US lottery). What changes is the tax. This guide covers which federal regime applies to you, how the 30% rule and tax treaties work, how state tax fits in, and why you'll probably need an ITIN.
Are you a resident alien or a non-resident alien?
For US tax purposes, every non-citizen is one or the other, and it decides everything that follows.
You are a resident alien if you hold a green card, or if you meet the substantial presence test: physically present in the US on at least 31 days this year, and on 183 days over the three-year period counting all of this year's days, a third of last year's and a sixth of the year before's. Resident aliens are taxed like citizens.
The test counts days, not immigration status. Someone living in the US without legal status can be a resident alien for tax purposes. On the other hand, some long-term visitors don't count their days at all: students on F, J, M or Q visas, teachers and trainees on J or Q visas, and certain foreign government officials are "exempt individuals" for the test, so they can remain non-resident aliens even after years in the country.
Tourists and most people living abroad who bought a ticket while visiting are non-resident aliens. Edge cases, such as people who arrived or left during the year, are worth taking to a tax professional before you claim.
How are non-resident aliens taxed on lottery winnings?
According to IRS Publication 515, non-resident aliens are subject to withholding "at 30% on the gross proceeds from gambling won in the United States" unless the income is effectively connected with a US business or a treaty exempts it. The payer reports the prize and the tax on Form 1042-S rather than the W-2G citizens get.
For a typical winner, that 30% is the tax. It is charged on the gross prize, and losing tickets generally can't be deducted against it. Residents of Canada are the exception: the Form 1040-NR instructions let them deduct US-source gambling losses up to their US-source gambling winnings.
How that compares with a citizen depends on the size of the prize:
- On a prize of a few thousand dollars, the non-resident usually pays more. A US resident pays at their own bracket, which may be 22% or 24% or lower, while the non-resident pays 30%.
- On a jackpot, the non-resident can come out ahead federally. A citizen has 24% withheld at the claim but owes up to 37% on the bulk of a multimillion-dollar prize when filing. The non-resident's rate stays at 30%.
Either way, state tax is a separate layer, covered below.
Which tax treaties exempt lottery winnings?
Publication 515 says gambling income of residents (as each treaty defines them) of these 25 countries is not taxable by the United States:
Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine and the United Kingdom.
Residents of Malta are taxed at 10%. The list changes over time: the gambling exemptions in the Hungary and Russia treaties are no longer in operation, so winnings of Hungarian residents have been subject to 30% withholding since January 1, 2024, and of Russian residents since August 16, 2024.
There are two ways to use a treaty exemption:
- At payout, give the lottery a Form W-8BEN claiming treaty benefits, with a US or foreign taxpayer identification number. The lottery can then apply the treaty rate instead of 30%.
- If 30% was withheld anyway, file Form 1040-NR to claim a refund. You'll need an ITIN or Social Security number to file.
If your country isn't on the list, the 30% generally stands. That includes Mexico, Canada (apart from its loss deduction), China and India, none of which appear on it.
Do non-residents pay state tax on lottery winnings?
Often, yes. State tax depends on where the ticket was bought, and each state sets its own rules. Some have no income tax, and California doesn't tax California Lottery prizes; see lottery tax rates by state.
New York is the usual worst case. Its tax department's guidance for lottery winners says a New York Lottery prize with proceeds over $5,000 is New York-source income, and taxable by the state, even if you don't live in New York. The state's top rate is 10.9%. New York City and Yonkers tax applies only to residents of those cities, so a visitor from abroad who wins in Manhattan owes the state but not the city, while an immigrant who lives in the city also pays city tax at up to 3.876%. More in why New York lottery winners keep the least.
Do you need an ITIN to claim a US lottery prize?
To file a US return, claim a treaty refund or give the lottery a taxpayer number, you need either a Social Security number or an Individual Taxpayer Identification Number. You apply for an ITIN on Form W-7. The IRS says an ITIN is issued for federal tax purposes only: it doesn't authorize work, provide or change immigration status, or qualify you for Social Security benefits.
What should a non-citizen winner do before claiming?
- Keep the ticket safe and check the claim deadline for the state where you bought it.
- Work out, with a professional who handles cross-border tax, which tax residency status applies to you for the year and whether a treaty applies.
- Apply for an ITIN early if you don't have an SSN, since you may need it for the W-8BEN or a refund return.
- Check how your home country taxes the win. Some tax worldwide income; some don't tax lottery prizes. The US treaty position and your home-country rules together decide what you keep.
Non-resident lottery tax questions
How much tax does a non-resident pay on US lottery winnings?
Generally a flat 30% federal tax on the gross prize, withheld by the lottery, unless a tax treaty reduces it. State tax may apply on top, depending on where the ticket was bought.
Can a foreign lottery winner get the 30% tax back?
Residents of 25 treaty countries, including the UK, Germany, France, Italy, Spain, Japan and Ireland, owe no US tax on gambling winnings, and Malta residents pay 10%. They can claim this at payout with Form W-8BEN or get a refund by filing Form 1040-NR. Residents of other countries generally can't.
Do green card holders pay 30% on lottery winnings?
No. Green-card holders are resident aliens and are taxed like citizens: 24% federal withholding on larger prizes, with the final tax at normal graduated rates of up to 37%.
Do you need an ITIN to claim US lottery winnings as a foreigner?
To file a US tax return or claim a treaty refund, you need a Social Security number or an ITIN. An ITIN is obtained with Form W-7, is for tax purposes only, and doesn't require work authorization.
Can non-residents deduct lottery losses?
Generally not. The 30% applies to the gross prize. Residents of Canada are the exception: they can deduct US-source gambling losses up to their US-source gambling winnings on Form 1040-NR.
This is general information about the federal rules, not tax advice; the right treatment for a particular winner depends on their residency history and home country.
Sources: IRS Publication 515 (2026); IRS Publication 519; Instructions for Form 1040-NR; IRS substantial presence test; IRS ITIN page; New York Publication 140-W.
