How do I calculate probate fees on an estate in Ontario?
Ontario's probate fee is the Estate Administration Tax, and you work it out from the value of the estate. For certificates applied for on or after January 1, 2020, there is no tax on the first $50,000, and above that the tax is $15 for every $1,000, or part of $1,000. Round the estate value up to the nearest $1,000 first.
Ontario's own example is a $240,000 estate: the first $50,000 is taxed at $0 and the remaining $190,000 at $15 per $1,000, so the tax is $2,850. A $500,000 estate pays $6,750 using the same method. The rate is 1.5%, not $50 per $1,000.
Only some assets count. The value is based on what the deceased owned at death, including Ontario real estate less mortgages or liens on it, bank accounts and investments. Jointly held assets that pass automatically to the other owner are not included. Funeral expenses and credit card debt cannot be deducted. The tax is paid as a deposit when the application is filed with the Superior Court of Justice. Whether any separate court filing fee applies is worth confirming with the court office or a lawyer.
Key takeaways
- For certificates applied for on or after January 1, 2020, there is no tax on the first $50,000 and $15 for every $1,000, or part of $1,000, above that.
- Round the estate value up to the nearest $1,000, and a $500,000 estate pays $6,750 using Ontario's method.
- Jointly held assets that pass automatically to the other owner, and registered plans with a named beneficiary, are left out of the estate value.
- Only mortgages and liens on real property can be deducted, and only from that property's value, while funeral costs and credit card debt cannot.