How much is Ontario estate administration tax on an estate worth $500,000?

On an estate worth $500,000, Ontario estate administration tax is $6,750. The estate pays this tax, not you personally.

The first $50,000 is not taxed. Above that, the tax is $15 for every $1,000, or part of $1,000, which is 1.5% and not $50 per $1,000. You round the value up to the nearest $1,000, so for a $500,000 estate the calculation is 450 × $15. Certificates applied for before January 1, 2020 were taxed under older rates.

Make sure the starting figure is right. The tax is based on what the deceased owned at death, with Ontario real estate counted less mortgages or liens on it. Jointly held assets that pass automatically to the other owner are left out, as are registered plans with a named beneficiary. Real estate outside Ontario is not included. Assets are valued at fair market value on the date of death. Funeral costs, credit card debt and legal fees cannot be deducted. The estate pays the tax as a deposit when the application is filed. A lawyer or accountant can confirm what counts in your case.