- For applications on or after January 1, 2020, estates of $50,000 or less pay nothing, and the rate above that is $15 per $1,000 or part thereof.
- Values are rounded up to the nearest $1,000 before the tax is calculated.
- A $100,000 estate pays $750, a $500,000 estate pays $6,750, and a $1,000,000 estate pays $14,250.
- Only encumbrances on real property reduce the value, so debts like credit cards do not.
Many people searching for an estate administration tax calculator just want to see the arithmetic laid out. The formula is short, but the part that trips people up is working out which assets count toward the estate value in the first place.
Below are the steps, followed by worked examples for estates of $100,000, $500,000 and $1 million. These examples show the general method only. Your own estate may include assets or debts that change the result, so confirm the figures with a lawyer or accountant.
The formula in three steps
For estate certificate applications made on or after January 1, 2020, an estate valued at $50,000 or less is exempt from the tax. Above that, the tax is $15 for each $1,000, or part of $1,000, of the value that exceeds $50,000. Ontario also says values are rounded up to the nearest $1,000 before calculating.
- First, work out the value of the estate, rounded up to the nearest $1,000.
- Next, subtract $50,000.
- Then, count the $1,000 blocks that are left and multiply by $15.
Ontario's official worked example is a $240,000 estate. There is no tax on the first $50,000, and $15 per $1,000 applies to the remaining $190,000, for tax of $2,850.
Worked examples: $100,000, $500,000 and $1,000,000
Applying the current rule to three common sizes of estate gives the following results.
| Estate value | Calculation | Tax |
|---|---|---|
| $100,000 | $15 x 50 | $750 |
| $500,000 | $15 x 450 | $6,750 |
| $1,000,000 | $15 x 950 | $14,250 |
In the $100,000 example, the tax is $15 x 50 = $750. In the $500,000 example, the tax is $15 x 450 = $6,750. In the $1,000,000 example, the tax is $15 x 950 = $14,250.
More quick reference figures
The same method gives these figures for other estate sizes.
| Estate value | Tax |
|---|---|
| $50,000 | $0 |
| $75,000 | $375 |
| $250,000 | $3,000 |
| $750,000 | $10,500 |
Because any part of $1,000 counts as a full $1,000, a value that falls partway into a block is rounded up to the next $1,000 for calculation purposes. Older material you may find online describes a $5 per $1,000 tier on the first $50,000, but that applied to applications from June 8, 1992 to December 31, 2019 and no longer applies to current applications.
What counts toward the estate value
The calculator is only as accurate as the value you put into it. Value is fair market value at the date of death, supported by documents such as statements or appraisals.
| Usually included | Usually excluded |
|---|---|
| Ontario real estate, less encumbrances such as mortgages or liens | Jointly owned assets passing automatically to the other owner(s) |
| Bank accounts, including foreign banks | Real estate outside Ontario |
| Investments, including TFSAs, RRSPs and RRIFs | RRSPs, RRIFs, TFSAs and RPPs with a beneficiary designation |
| Vehicles and vessels wherever located | CPP death benefit |
| Business interests and insurance proceeds payable to the estate | Assets owned before death but not at death |
Registered plans such as RRSPs, RRIFs and TFSAs are counted where there is no beneficiary designation, for example where they are payable to the estate.
What you cannot subtract
Only encumbrances on real property reduce the estate value. Funeral expenses, lawyer fees, loans and interest, vehicle debt, credit card debt, real estate commissions, unregistered loans and lines of credit cannot be deducted. So credit card debt, for example, does not lower the value used to calculate the tax, assuming nothing else changes the value.
If a mortgage is registered on a house, however, the actual value of that encumbrance comes off the value of the property.
What to do next
- List every asset and decide whether it is included or excluded using the lists above.
- Collect date-of-death statements and an appraisal for real estate.
- Subtract only real property encumbrances.
- Round up to the nearest $1,000, subtract $50,000, then multiply by $15 per $1,000.
- Remember the Estate Information Return is due within 180 days of the certificate, even for a $0 estate.
- Ask a lawyer or accountant to check the value if there are foreign assets, business interests or unclear ownership.
Frequently asked questions
How much is the tax on a $100,000 estate?
It is $750, calculated as $15 x 50. The $15 applies for each $1,000 of value above $50,000.
Is the tax calculated on the full value or only the part over $50,000?
Under the current rule, estates of $50,000 or less pay nothing, and the $15 per $1,000 applies to the value over $50,000. Ontario's $240,000 example shows this, with $0 on the first $50,000.
Can I subtract debts and funeral costs?
Not generally. Only encumbrances on real property reduce the value, and funeral expenses, credit card debt and similar items cannot be deducted.
What if I use an estimate and it turns out to be wrong?
Where an estimate was used, the applicant undertakes to file a sworn statement of the actual value and pay any shortfall within six months. If the deposit was too high, part of it is refunded.
Sources
- Estate Administration Tax Act, 1998 (e-Laws) — Ontario e-Laws
- Ontario.ca – Estate Administration Tax — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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