Korean Lottery Tax Structure
Winnings from Korean Lotto 6/45 are subject to income tax (lottery winnings income), which is automatically withheld at the time of prize payment. No separate tax filing is required.
Tax Rates
| Prize Amount | Tax Rate | Notes |
|---|---|---|
| ≤ ₩50,000 | Tax-free | No tax (4th/5th tier prizes) |
| > ₩50,000 ~ ≤ ₩300M | 22% | Income tax 20% + Local tax 2% |
| > ₩300M | 33% | Income tax 30% + Local tax 3% |
Net Payout Calculation Examples
5th Place: ₩5,000
- Tax: None (tax-free)
- Net payout: ₩5,000
4th Place: ₩50,000
- Tax: None (≤ ₩50,000 is tax-free)
- Net payout: ₩50,000
3rd Place: ₩1,500,000
- Taxable amount: ₩1,500,000 - ₩50,000 = ₩1,450,000
- Tax: ₩1,450,000 × 22% = ₩319,000
- Net payout: ~₩1,181,000
2nd Place: ₩50,000,000 (50 million won)
- Tax: ₩50,000,000 × 22% = ₩11,000,000
- Net payout: ~₩39,000,000 (39 million won)
1st Place: ₩2,000,000,000 (2 billion won)
- Tax on ₩300M portion: ₩300,000,000 × 22% = ₩66,000,000
- Tax on ₩1.7B portion: ₩1,700,000,000 × 33% = ₩561,000,000
- Total tax: ₩627,000,000
- Net payout: ~₩1,373,000,000 (~1.37 billion won)
Frequently Asked Questions
Q: Do I need to file a separate tax return?
A: No. The tax is withheld at the source when you collect your winnings. No additional tax filing is needed.
Q: What about group purchases?
A: If the group purchase is documented and proven, each person is taxed individually on their share. If one person collects and then distributes the winnings, additional gift tax may be imposed.
Q: What about the pension lottery?
A: The same tax rates apply to pension lottery winnings. Tax is deducted from the monthly payout amount.
This guide is based on 2024 Korean tax law. Net amounts may change if tax rates are revised.