How is estate administration tax calculated in Ontario?

Ontario's estate administration tax (commonly called probate fees) is calculated on the value of the estate that is subject to probate — generally, assets that were held solely in the deceased's name and that do not pass by beneficiary designation or by right of survivorship.

The rate is approximately $5 per $1,000 on the first $50,000 of estate value, and approximately $15 per $1,000 on the value above $50,000. There is no tax on the first $1,000 of estate value.

For example, a probatable estate worth $500,000 would attract roughly $250 on the first $50,000 and approximately $6,750 on the remaining $450,000, for a total of around $7,000. The tax can become significant for large estates with real estate, investment accounts, and other assets held solely in the deceased's name.

Assets that pass outside the estate — such as RRSPs, TFSAs, life insurance, and jointly held property with right of survivorship — are not included in the calculation and do not attract the tax. This is why proper beneficiary designations and ownership structuring can reduce the total estate administration tax.

The estate pays this tax when applying for the Certificate of Appointment, so it must be funded at the time of the probate application.