Estimated Results
Applying for probate is more than a tax calculation.
An estates lawyer can help determine whether a certificate is needed, prepare the application, and file the Estate Information Return.
Based on the Estate Administration Tax Act, 1998 and O. Reg. 2/00, using rates effective for estate certificates applied for on or after January 1, 2020. Does not determine what is or is not included in the value of the estate for your specific situation — that depends on how assets were held and titled. Does not include the Estate Information Return filing obligation, court filing fees, or professional fees.
How this works — Estate Administration Tax formula
The Formula
| Estate Value | Tax |
|---|---|
| $50,000 or less | $0 |
| Over $50,000 | $15 for every $1,000 (or part thereof) of value above $50,000 |
The value of the estate is first rounded up to the nearest $1,000. There is no tax at all on estates valued at $50,000 or less — though an Estate Information Return must still generally be filed with the Ministry of Finance within 180 days of the certificate being issued.
Worked Example
For an estate valued at $500,000: the first $50,000 is tax-free, leaving $450,000 taxable. $450,000 ÷ $1,000 × $15 = $6,750.
What Counts Toward the Estate's Value
Generally, the value of all property owned by the deceased at death that vests in the estate trustee, including:
- Real estate located in Ontario (net of encumbrances such as a mortgage)
- Bank accounts, investments, and registered accounts without a named beneficiary (RRSP, RRIF, TFSA, RESP, RDSP)
- Vehicles, vessels, and other personal property
- Business interests and all other property, wherever situated, that passes through the estate
What Is Generally Excluded
- Life insurance with a named beneficiary (other than the estate)
- Property held in joint tenancy with right of survivorship that passes automatically to a surviving joint owner
- Real estate located outside Ontario
- The CPP death benefit
- Registered accounts (RRSP, RRIF, TFSA, etc.) with a named beneficiary
Whether a specific asset is included or excluded depends on exactly how it was held and titled — this is one of the most common areas where professional advice changes the final number.
Estate Administration Tax Rate Schedule
| Estate Value | Rate |
|---|---|
| $0 – $50,000 | No tax |
| Over $50,000 | $15 per $1,000 (1.5%) on the excess |
Rates effective for estate certificates applied for on or after January 1, 2020. Estate value is rounded up to the nearest $1,000 before the tax is calculated.
