Estate Administration Tax in Ontario: Rates and How to Calculate It

If you are the estate trustee, one of your first questions is usually how much it will cost to get a certificate from the court. In Ontario, part of that cost is the Estate Administration Tax, often called probate tax. It depends on the value of the estate, so you need to know the rate bands and how the value is measured.

This article sets out the current rates, walks through the calculation step by step, explains when the tax is paid, and notes what still has to be filed afterwards. What counts toward the estate's value has its own rules, so a lawyer or accountant can help if your estate has unusual assets.

When the tax applies

The tax is charged only when an estate certificate (probate) is applied for and issued. If no certificate is applied for or issued, no tax is owed.

The tax is paid by the estate, not personally by the estate representative. In practice, you pay it as a deposit when the probate application is filed with the court, and once the certificate is issued the deposit becomes the Estate Administration Tax.

The current rate bands

For estate certificates applied for on or after January 1, 2020, no tax is payable on an estate worth $50,000 or less. Above $50,000, the tax is $15 for every $1,000 (or part thereof) of the estate's value over $50,000.

Older applications were taxed differently. Before January 1, 2020, the rates were $5 per $1,000 (or part thereof) on the first $50,000 and $15 per $1,000 on the amount above $50,000, and estates of $1,000 or less were exempt. If you are reading older material or a prior file, check which set of rules applied.

How the calculation works

To calculate the tax, the estate's value is first rounded up to the nearest thousand dollars. An estate worth $50,000 or less owes no tax. For a larger estate, the tax is $15 for every $1,000 (or part thereof) of the value over $50,000.

In plain words, a value that lands partway into a thousand-dollar band is counted as the whole band, so even a small amount over a thousand adds another $15. Your own figure depends on what is counted in the estate, so check the total carefully before you rely on an estimate.

• Round the estate's value up to the next thousand.
• Subtract $50,000.
• Multiply the number of thousands that remain by $15.

Smaller estates and special certificates

Since April 1, 2021, a small estate for probate purposes is one valued at $150,000 or less. The application is Form 74.1A, filed with Form 74.1B and a draft Small Estate Certificate (Form 74.1C). Small estates still pay the tax on value over $50,000, up to the $150,000 cap, and it is paid when the application is filed unless it is not payable or the court orders it deferred.

Some certificates carry no tax at all. No tax is payable on a Certificate of Appointment of Succeeding Estate Trustee, whether with a will, with a will limited to the assets referred to in the will, or without a will. The same applies to a Certificate of Appointment of Estate Trustee During Litigation.

For resealing, ancillary and foreign nominee certificates, only assets located in Ontario are used to calculate the tax.

Paying the tax and filing the return

At the court office, the tax can be paid by cash or debit (where available), certified cheque, a cheque from a solicitor or firm trust account, a cheque from a trust company account, or a bank draft. Cheques and drafts are made payable to "Minister of Finance".

After the certificate is issued, the estate representative must file an Estate Information Return with the Ministry of Finance within 180 calendar days. This is required even when the estate is worth $50,000 or less and no tax is owed. Succeeding estate trustee certificates and litigation certificates do not require a return. If a deadline falls on a weekend or holiday, it moves to the next business day.

Filing the return online is recommended, though it can also be filed by mail, courier, fax or in person. Failing to file, or making false or misleading statements, can lead to a fine of at least $1,000 and up to twice the tax payable, imprisonment for up to two years, or both.

What to do next

• Confirm that probate is actually needed, since no certificate means no tax.
• List the estate's assets and their fair market value at the date of death.
• Gather statements and appraisals so you can support the values.
• Calculate the tax using the rate bands above, and plan to pay it as a deposit when you file.
• Diarize the 180-day deadline for the Estate Information Return.

If the estate is large, includes a business, or has assets in more than one place, a lawyer or accountant can confirm what counts and help you avoid errors in the return.

Frequently asked questions