- Real estate outside Ontario is not counted for Estate Administration Tax, but other property worldwide is.
- Above $50,000, the tax is $15 for each $1,000 or part of $1,000 over that amount for applications on or after January 1, 2020.
- An Estate Information Return is due within 180 calendar days after the certificate is issued, even if no tax is payable.
If the person who died owned a condo abroad, a foreign bank account or shares held outside Canada, you may wonder whether Ontario's probate tax reaches all of it. The answer is partly yes and partly no, and the split is important for filing an accurate value.
This article walks through what counts, what does not, how values are set, and what the estate trustee has to file. It covers Ontario's tax only; foreign countries have their own rules, which a local advisor can explain.
The short answer
Real estate outside Ontario is not included in the value of the estate for Estate Administration Tax. Other property worldwide is included, such as bank accounts (including foreign banks), investments, vehicles and business interests.
So a house in another country generally stays out of the calculation, while a bank account in that same country goes in. Whether other countries tax the estate, or require their own court process, is a separate question that depends on their laws.
How the tax is calculated
For applications made on or after January 1, 2020, no tax is payable if the estate is worth $50,000 or less. Above that, the tax is $15 for each $1,000 or part of $1,000 by which the value exceeds $50,000. The estate value is rounded up to the nearest thousand.
In practice, you take the estate's value rounded up to the nearest thousand, subtract $50,000, and apply $15 to each $1,000 of what remains. Your lawyer or accountant can help confirm the figure for your estate. Applications made before January 1, 2020 followed an older exemption of $1,000 or less and different rates.
What goes into the value
| Item | Counted for the tax? |
|---|---|
| Real estate outside Ontario | No |
| Foreign bank accounts | Yes |
| Investments, vehicles, business interests | Yes |
| Ontario real estate | Yes, less the actual value of any encumbrance such as a mortgage or lien |
| Credit card balances, loans, lines of credit | Cannot be deducted |
Assets, including private company shares and business interests, must be valued at fair market value at the date of death. The representative should be able to support each value with documents such as statements or an appraiser's opinion.
For foreign property, that may mean statements in another currency or a valuation from someone local. Keep the paperwork and note the date and source of any conversion you use.
Paying the tax and reporting the value
The tax is paid as a deposit when the application is filed and becomes payable when the certificate is issued. The estate pays the tax, not the estate representative personally. Payments must be made in person or sent by mail or courier to the court office.
If the deposit is based on an estimated value, the applicant must undertake to file a sworn statement of the actual value and pay any additional tax within six months.
An Estate Information Return must be filed with the Ministry of Finance within 180 calendar days after the certificate is issued, even if no tax is payable. An amended return must be filed within 60 days of becoming aware that information is incomplete or inaccurate.
Mistakes, refunds and what to do next
Failing to file the required information, or making false or misleading statements, is an offence. The penalty is a fine of at least $1,000 (up to twice the tax if the tax exceeds $1,000), imprisonment of up to two years, or both. It is not an offence if the person did not know, and could not reasonably have known, that a statement was false.
If tax was overpaid after the certificate issued, the request goes to the Ministry of Finance and is made by filing or amending the Estate Information Return. The information must have been provided within four years after the certificate was issued, and the written request must be received within 12 years after the certificate was issued, or within 2 years after a notice of assessment or reassessment. If no certificate has issued yet, a deposit refund is requested from the Superior Court of Justice office where the application was filed.
- List every asset worldwide and mark which is real estate outside Ontario.
- Gather date-of-death statements or appraisals for each asset.
- List mortgages or liens on Ontario real estate, and keep unsecured debts separate.
- Note the date the certificate is issued and diarize the 180-day return deadline.
- Ask a lawyer or accountant about tax and court requirements in the other country.
Frequently asked questions
Does a house in another country add to Ontario probate tax?
No. Real estate outside Ontario is not included in the value of the estate for Estate Administration Tax. Other countries may have their own rules, which you would need to confirm locally.
Are foreign bank accounts counted?
Yes. Property other than real estate outside Ontario is included worldwide, including bank accounts at foreign banks, investments, vehicles and business interests.
Can I deduct debts to lower the value?
A mortgage or lien on Ontario real estate reduces its value. Unsecured debts such as credit cards, loans and lines of credit cannot be deducted.
Do I have to file a return if no tax is owing?
Yes. The Estate Information Return must be filed within 180 calendar days after the certificate is issued, even if no tax is payable.
Sources
- Ontario Court Forms – Filing Electronic Documents in Probate Proceedings — ontariocourtforms.on.ca
- Ontario.ca – Estate Administration Tax — ontario.ca
- Estate Administration Tax Act, 1998, s. 4(3) — Ontario e-Laws
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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