New Zealand Lottery Guide 2026

Quick Answer

Are lottery winnings taxable in New Zealand? No. New Zealand does not tax lottery winnings. All NZ Lotto, Powerball NZ, and other New Zealand lottery prizes are completely tax-free.

New Zealand Lottery Games

New Zealand's lottery games are operated by Lotto New Zealand, a Crown entity established under the Lottery Grants Board Act 1990. Profits from ticket sales fund community projects throughout New Zealand.

Lotto NZ

Wednesday & Saturday

From $1M+

6 numbers from 1–40; core draw game

Powerball NZ

Wednesday & Saturday

From $4M+

Lotto add-on; 1 Powerball from 1–10

Big Wednesday

Every Wednesday

From $500K+

Standalone draw; 6 numbers from 1–40

Keno

Every 3.5 minutes

Up to $500K

Pick 1–15 numbers from 1–80

Are New Zealand Lottery Winnings Taxable?

The IRD does not classify lottery prizes as income under the Income Tax Act 2007. New Zealand uses a schedular approach to income tax — and lottery winnings simply do not fall within any taxable schedule. There is no capital gains tax in New Zealand either, so prizes are completely free of tax at the point of receipt.

What is taxable: If you deposit your winnings in a bank account and earn interest, that interest is taxable. If you invest in shares or property, dividends and rental income are taxable. PIE (Portfolio Investment Entity) taxes may apply to certain managed funds.

There is no gift tax in New Zealand, so sharing your winnings with family or friends has no tax consequences for the recipient.

How to Claim New Zealand Lottery Prizes

  • Up to $1,000: Claim at any Lotto NZ retailer by presenting your winning ticket. The retailer will validate and pay the prize immediately.
  • $1,000 to $500,000: Claim online at mylotto.co.nz if you purchased digitally, or visit a Lotto NZ retailer or customer centre with photo ID.
  • Over $500,000 (including jackpots): Lotto NZ will contact you directly. Prize validation is conducted securely and payment is made by direct bank transfer. No tax is deducted.

Prizes must be claimed within 12 months of the draw date. Unclaimed prizes are returned to the Lottery Grants Board for community funding.

Frequently Asked Questions

Are lottery winnings taxable in New Zealand?

No. New Zealand does not tax lottery winnings. The Inland Revenue Department (IRD) does not treat lottery prizes as income, so they are entirely tax-free. Any interest or investment returns subsequently earned on the prize money are, however, subject to income tax.

How do you play Powerball NZ?

Powerball NZ is played as an add-on to Lotto NZ. First, pick 6 Lotto numbers from 1 to 40. Then add Powerball for an extra $1 per line and select 1 Powerball number from 1 to 10. Draws take place every Wednesday and Saturday. You can play online at mylotto.co.nz or at any New Zealand Lotteries retailer.

What are the odds of winning NZ Lotto?

The odds of winning the NZ Lotto Division 1 prize are 1 in 3,838,380. The odds of winning the Powerball NZ jackpot (matching all 6 Lotto numbers plus the Powerball) are 1 in 38,383,800. Overall odds of winning any Lotto prize are approximately 1 in 25.

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