Key points
Ontario charges estate administration tax of $15 for every $1,000 of estate value above $50,000, which works out to 1.5 per cent. Estates valued at $50,000 or less pay no tax when the application is made on or after January 1, 2020. Use the free calculator below to estimate the tax before you apply for probate.
The estate administration tax in Ontario is $15 for every $1,000 of estate value above $50,000, and the first $50,000 is exempt. On an estate worth $500,000, the tax comes to $6,750, and the free calculator below shows the figure for any estate value in seconds.
Most people call this tax the probate fee. Its formal name is the estate administration tax, and it applies under Ontario’s Estate Administration Tax Act, 1998 when you apply to the Superior Court of Justice for an estate certificate, the document most people know as probate. This guide explains how the tax is calculated, which assets count, which do not, and what you must file after the certificate is issued.
Ontario Estate Administration Tax Calculator
Enter the estate values below. The calculator applies the current Ontario rules for applications made on or after January 1, 2020, including the $50,000 exemption and the rounding rule that takes the estate value up to the nearest $1,000.
Estate Administration Tax Calculator
Ontario rates for estate certificate applications made on or after January 1, 2020
Enter the estate values above to see the tax.
This tool provides a general estimate based on Ontario rates for estate certificate applications made on or after January 1, 2020. It is not legal or tax advice. Confirm the exact amount with your lawyer, the court, or the Ministry of Finance before filing.
What Is the Estate Administration Tax in Ontario?
The estate administration tax is a provincial tax charged on the value of a deceased person’s estate when an estate certificate is applied for and issued. You pay it as a deposit when you file the probate application with the Superior Court of Justice, and once the court issues the certificate, that deposit becomes the tax. The Ontario Ministry of Finance publishes the governing rules on its estate administration tax page.
If you never apply for a certificate, no tax is owed. If you apply but the court does not issue the certificate, you can request a refund of the deposit from the court office. The tax comes out of estate funds rather than the estate trustee’s own pocket, and cheques are payable to the Minister of Finance.
A few certificates carry no tax at all. A Certificate of Appointment of Succeeding Estate Trustee, with or without a will, and a Certificate of Appointment of Estate Trustee During Litigation are issued without payment of the tax.
How Is the Estate Administration Tax Calculated?
The calculation has three steps. First, determine the fair market value of the estate at the date of death. Second, round that value up to the nearest $1,000. Third, subtract $50,000 and charge $15 for every $1,000 that remains.
The rounding rule is the detail most generic guides miss. Ontario rounds the estate value up to the nearest $1,000 before applying the rate, so an estate valued at $239,250 is taxed as if it were worth $240,000. Here is the full arithmetic on that example.
- $240,000 minus the $50,000 exemption leaves $190,000
- $190,000 divided by $1,000 equals 190
- 190 multiplied by $15 equals $2,850 in estate administration tax
Different rates applied to estate certificate applications made before January 1, 2020, including a $5 per $1,000 charge on the first $50,000. Those older rates no longer apply to new applications, and every figure in this guide uses the current rules.
How Much Probate Tax Will You Pay at Different Estate Values?
The table below shows the tax at common estate values under the current rules. Every figure assumes the value shown is the final estate value after the only permitted deduction, which is a mortgage or lien registered against Ontario real estate.
| Estate value | Estate administration tax | Effective rate |
|---|---|---|
| $50,000 or less | $0 | 0% |
| $100,000 | $750 | 0.75% |
| $250,000 | $3,000 | 1.20% |
| $500,000 | $6,750 | 1.35% |
| $750,000 | $10,500 | 1.40% |
| $1,000,000 | $14,250 | 1.43% |
| $1,500,000 | $21,750 | 1.45% |
| $2,000,000 | $29,250 | 1.46% |
The effective rate climbs toward 1.5 per cent as the estate grows because the $50,000 exemption matters less on larger estates.
Which Assets Are Included in the Estate Value?
The estate value covers everything the deceased owned at the moment of death, valued at fair market value. The Ministry of Finance lists the following categories.
- Real estate located in Ontario, less mortgages, collateral mortgages, and liens registered against it, using the appraised value at the date of death even if the property later sells for a different price
- Bank accounts, including accounts held at foreign banks
- Investments such as stocks, bonds, trust units, and mutual funds, plus registered accounts like a TFSA, RRSP, or RRIF that have no valid beneficiary designation
- Vehicles and vessels, including cars, trucks, boats, motorcycles, and trailers, wherever they are located
- Property of the deceased held in another person’s name
- All other property wherever located, including goods, intangible property, business interests, and insurance proceeds left to the estate
In our practice, the asset that surprises estate trustees most often is the family home. The full appraised value at the date of death goes into the calculation even when the sale closes months later at a different price, and only registered encumbrances come off.
One more quirk worth flagging for property owners. The first dealings exemption that sometimes lets a converted Land Titles property transfer without probate does not reduce this tax. If the property forms part of the estate, its value goes into the calculation and the applicable tax is payable.
Which Assets Are Not Included?
Assets that pass outside the estate stay out of the calculation. The main categories are listed below.
- Assets owned jointly with a right of survivorship that pass automatically to the surviving owner
- Life insurance paid to a named beneficiary rather than to the estate
- Registered accounts such as an RRSP, RRIF, TFSA, or registered pension plan with a valid beneficiary designation
- Real estate located outside Ontario
- The Canada Pension Plan death benefit
Be careful with joint accounts held with adult children. Ontario courts often presume the child holds the account in trust for the estate unless there is clear evidence the parent intended a true gift, so a joint account does not always escape the estate value. This is one of the areas where we ask the most questions before an application is filed.
Can You Deduct Debts From the Estate Value?
Only one deduction exists. You can subtract a mortgage, collateral mortgage, or lien registered against Ontario real estate that forms part of the estate. Nothing else comes off the value, including the following common debts and expenses.
- Funeral expenses
- Legal fees
- Credit card balances
- Loans and interest payments, including debt owed on a vehicle
- Lines of credit and unregistered personal loans
- Real estate commissions on a future sale
This rule surprises almost every estate trustee we meet. An estate can hold significant debt and still pay tax on the gross asset values, with the registered mortgage on Ontario real estate as the only relief.
When and How Do You Pay the Tax?
You pay when you file. The tax accompanies the probate application as a deposit to the Superior Court of Justice, and the certificate does not issue without it. If you cannot determine an exact value in time, the court can accept an application based on an estimated value together with a sworn undertaking to provide the actual value later. You then file the required paperwork and pay any additional tax once the true value is known.
Paying the deposit before the bank releases estate funds is a real pressure point for families. In our experience, many banks will issue a draft payable to the Minister of Finance directly from the deceased’s account to cover the tax, and some families bridge the amount personally and reimburse themselves from the estate. Ask the bank about its process early so the application does not stall.
What Is the Estate Information Return and When Is It Due?
Paying the tax is not the end of the job. Within 180 calendar days after the estate certificate is issued, the estate trustee must file an Estate Information Return with the Ontario Ministry of Finance. The return itemizes the estate assets and their date of death values, and it is mandatory even when the estate qualifies for the $50,000 exemption and the tax is zero. If the deadline lands on a weekend or holiday, it extends to the next business day.
The fastest route is the ministry’s online filing service, which sends an acknowledgment by the next business day. If you later discover an error or a new asset, you must file an amended return within 60 calendar days and pay any additional tax on the higher value. Records supporting the return must be kept for four years.
The penalties have teeth. An estate trustee who fails to file, or who files false or misleading information, faces a fine of at least $1,000 and up to twice the tax payable, imprisonment for up to two years, or both. The ministry can reassess the estate within four years of the tax becoming due, and at any time where a return was never filed or a misrepresentation was made, even a careless one.
Do Small Estates Under $150,000 Follow the Same Rules?
Yes for the tax, no for the process. Since April 1, 2021, an estate valued at $150,000 or less can use Ontario’s simplified small estate process, applying with Form 74.1A for a Small Estate Certificate instead of the standard application. The simplified route requires fewer supporting documents, and in most cases no bond.
The tax calculation does not change. A $140,000 small estate still pays $15 per $1,000 above $50,000, which comes to $1,350, and the Estate Information Return deadline still applies.
A Small Estate Certificate covers only the assets listed on it. If you later find assets that keep the total at $150,000 or less, you can apply to amend the certificate. If the new assets push the estate above $150,000, you must apply for a standard Certificate of Appointment of Estate Trustee.
How Can You Reduce Estate Administration Tax?
The tax is calculated on what passes through the estate, so planning done during your lifetime is what moves the number. The most common tools are listed below.
- Name beneficiaries on registered accounts, pensions, and life insurance so those assets pass outside the estate
- Hold assets jointly with a spouse so they pass by right of survivorship
- Use multiple wills where you own shares of a private corporation, so only the will that needs probate goes to the court
- Gift assets during your lifetime, with careful attention to the income tax consequences of doing so
The multiple wills strategy deserves a closer look for business owners. Ontario practice allows a primary will for assets that need probate and a secondary will for assets that do not, most commonly shares of a private corporation. Only the primary will goes to probate, so the tax is calculated without the corporate assets. This is a routine part of our business succession planning work for Ontario owners.
Treat every strategy with care. The estate administration tax tops out at roughly 1.5 per cent, while a poorly planned transfer can trigger capital gains tax, land transfer complications, or family disputes that cost far more. Joint ownership with an adult child is the classic example, since it can spark litigation over whether the asset was a gift or held in trust. Plan the whole picture with a lawyer rather than chasing the probate figure alone.
Frequently Asked Questions
Is there an inheritance tax in Ontario?
No. Ontario does not tax beneficiaries on what they inherit. The estate itself pays the estate administration tax when a certificate is issued, and the deceased’s final income tax return covers income and capital gains up to death. Beneficiaries generally receive their inheritance with no further Ontario tax on the amount itself.
Do you pay the tax if you do not need probate?
No. The tax applies only when an estate certificate is applied for and issued. If every asset passes outside the estate through joint ownership or beneficiary designations, and no institution demands probate, no tax is owed. Whether you can safely skip probate depends on the assets involved and the institutions holding them.
Can funeral costs or credit card debts reduce the estate value?
No. The only permitted deduction is a mortgage, collateral mortgage, or lien registered against Ontario real estate included in the estate. Funeral expenses, legal fees, credit card balances, car loans, and lines of credit do not reduce the value for tax purposes, even though the estate must still pay them.
What happens if you discover new assets after the certificate is issued?
You must disclose them to the court in a sworn statement, file an amended Estate Information Return within 60 calendar days, and pay any additional tax on the higher value. For a small estate, you also apply to amend the certificate, or apply for a standard certificate if the total now exceeds $150,000.
How long do you have to file the Estate Information Return?
You have 180 calendar days from the date the estate certificate is issued, and the deadline extends to the next business day if it lands on a weekend or holiday. The return is mandatory even when the estate is worth $50,000 or less and the tax is zero. Filing online through the Ministry of Finance is the fastest option.
Does paying the estate administration tax settle the income tax too?
No, they are separate obligations. The estate administration tax is a provincial charge on the estate value at death. Income tax is charged on the deceased’s final return, which can include capital gains from the deemed disposition of property at death. Many estates owe far more income tax than probate tax, so plan for both.
The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.
