Are Lottery Winnings Taxed in Germany? The 2026 Rules
In short: no, lottery winnings are not taxed in Germany. That holds for 6aus49 and Eurojackpot alike, at any amount and with no time limit. Tax only comes in once the money itself earns something or changes hands. Here is exactly where that line runs.
Key Takeaways
- Lottery winnings are tax-free in Germany: at any amount, Eurojackpot included, and with no time limit.
- You don't declare the win on your tax return.
- What the money earns is taxed: 26.375% on interest and dividends, including the solidarity surcharge.
- Giving money away triggers gift tax above the allowance. A syndicate agreed before the draw avoids it.
- If you receive basic income support (formerly BĂĽrgergeld), you must report the win immediately.
Are lottery winnings taxed in Germany?
No. Lottery winnings are not one of the seven types of income that Germany's Income Tax Act lists exhaustively. What isn't income can't be taxed, whether you win €5 or €120 million. The prize is paid out in full, and you don't declare it on your tax return either.
Is Eurojackpot tax-free too?
Yes. Eurojackpot works the same way as LOTTO 6aus49, Spiel 77 or scratch cards: if you live and play in Germany, every prize is tax-free. Only a win in another participating country can have that country's tax deducted at payout.
Legal basis
§ 2(1) of the Income Tax Act (EStG) lists the taxable types of income exhaustively: agriculture and forestry, trade or business, self-employment, employment, capital, rental and leasing, and other income. Gambling winnings fall under none of them.
How long do winnings stay tax-free?
Forever. There is no deadline on the prize itself: it doesn't become taxable after one year or after ten, and you can spend it, invest it or leave it in your account at any time. Tax can only arise from what you do with the money:
- Interest, dividends and capital gains are always taxable, however long you hold the investment.
- Rent from a property you buy is taxed at your personal income tax rate.
- Selling a property at a profit within ten years of buying it makes the gain taxable (§ 23 EStG). The exception: you lived in it yourself in the year of sale and the two years before.
Interest on your winnings: where tax applies
Once the winnings earn a return, that return is taxable. Interest, dividends and capital gains carry a 25% flat tax plus a 5.5% solidarity surcharge on the tax, 26.375% in total, with church tax on top for church members. German banks deduct it automatically.
Example: savings account
You win €1 million, file as a single person and invest it at 3% for a year.
- Winnings (tax-free)€1,000,000
- Interest (year 1)+ €30,000
- Of which tax-free (saver's allowance)€1,000
- Flat tax + surcharge (26.375%)- €7,649
- Interest after tax€22,351
Excluding church tax.
The tax office only cares about what the money earns, not about the prize itself.
Gift tax when you share your winnings
Keeping the prize costs nothing, but passing it on can. Transferring money to family or friends is a gift. Whatever stays under the allowance is tax-free, and the allowance applies per recipient and per ten-year period.
| Recipient | Allowance (per 10 years) | Tax rate above it |
|---|---|---|
| Spouse, registered partner | €500,000 | from 7% |
| Children, stepchildren | €400,000 | from 7% |
| Grandchildren | €200,000 | from 7% |
| Parents, siblings, nieces and nephews | €20,000 | from 15% |
| Unmarried partners, friends | €20,000 | from 30% |
Rates rise with the amount: up to 30% for spouses, children and grandchildren, up to 43% for parents and siblings, and up to 50% for everyone else.
If you record in writing before the draw who is playing and who is owed which share, the prize belongs to all of you from the start. Splitting it is then not a gift but paying out each share. Without proof, the tax office can treat it as a gift from whoever received the payout.
Do you have to report a win to the tax office?
No. Since the prize isn't income, it doesn't appear on your income tax return. Tax on later interest is usually deducted by your bank. What you do have to report are gifts above the allowance, within three months.
Keep the winning confirmation from your lottery operator all the same. Because of anti-money-laundering rules, banks often ask where large sums come from, and that document answers the question straight away.
Lottery winnings and basic income support
Tax-free doesn't mean it's ignored. Anyone receiving basic income support for jobseekers (Grundsicherung) must report a lottery win to the job centre immediately. The win counts as income, and whatever is left over counts as savings.
Since 1 July 2026, Grundsicherung has replaced Bürgergeld. The former one-year grace period for savings is gone, and the protected savings amount now depends on age: between €5,000 and €20,000 per person. Transitional rules apply to people who were already receiving benefits before July 2026. Any sizeable win usually ends the entitlement.
How Germany compares
Tax-free
Germany, United Kingdom, France, Canada, Australia
Around 20% above a threshold
Spain, Portugal, Italy (deducted at payout)
Fully taxed
USA (up to 37% federal tax plus state tax)
Check Your Winning Chances Now
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Check NumbersLegal Disclaimer: This article does not constitute tax advice. Last reviewed September 2026. Laws can change. For large winnings, we strongly recommend consulting a tax advisor.