Ontario Estate Administration Tax Rates: $15 Per $1,000

People searching for the Ontario estate administration tax rate often see two figures, $5 and $15 per $1,000. That is because the rules used to have two tiers. If you are applying for a certificate today, only one rate matters, and the first part of the estate is exempt.

This article sets out the current rate, explains where the older $5 figure came from, and walks through worked examples so you can see how the arithmetic plays out. It is general information, and a lawyer or accountant can confirm how it applies to a specific estate.

The current rate

For estate certificate applications made on or after January 1, 2020, an estate valued at $50,000 or less is exempt from estate administration tax. Above that, the tax is $15 for each $1,000 (or part thereof) of the value of the estate that exceeds $50,000.

Ontario also says values are rounded up to the nearest $1,000 before calculating. The phrase part thereof means a partial thousand is charged as a full one.

The tax is payable to the Crown in right of Ontario by the estate immediately upon the issuance of an estate certificate.

Where the $5 figure comes from

For applications made June 8, 1992 to December 31, 2019, the rate was $5 per $1,000 on the first $50,000 and $15 per $1,000 on the excess, with a $1,000 exemption. The $5 tier no longer applies to current applications.

If you are reading an older guide, an old article or a family member's account of what they paid years ago, the $5 tier may be why the numbers do not match what you are seeing now.

Worked examples

Ontario's own worked example is a $240,000 estate: $0 tax on the first $50,000 and $15 per $1,000 on the remaining $190,000, for tax of $2,850. The other figures below apply the same rate by arithmetic.

To check any figure yourself, subtract $50,000 from the rounded estate value, divide by 1,000, and multiply by $15. For example, a $100,000 estate pays $15 × 50 = $750.

What goes into the estate value

The rate is applied to the value of the estate, which is the value you disclose under section 32 of the Estates Act, less the actual value of encumbrances on real property. Value is fair market value at the date of death, supported by documents such as statements or appraisals.

• Counted: Ontario real estate less mortgages or liens, bank accounts, investments including TFSAs, RRSPs and RRIFs, vehicles and vessels, property held in another person's name, business interests and insurance proceeds payable to the estate.
• Not counted: jointly owned assets passing automatically to the other owner or owners, real estate outside Ontario, the CPP death benefit, and RPPs, RRSPs, RRIFs and TFSAs with a beneficiary designation.
• Not deductible: funeral expenses, lawyer fees, loans and interest, vehicle debt, credit card debt, real estate commissions, unregistered loans and lines of credit.

Because of these rules, an estate with large debts can still produce significant tax if the debts are not secured against real property. That surprises many families.

What to do next

• Add up the date-of-death value of the assets that are actually part of the estate, leaving out joint assets and designated-beneficiary plans.
• Subtract only the mortgages and liens on real property.
• Round the total up to the next $1,000 and apply the exemption and the $15 rate.
• If you can only estimate, expect to deposit an estimated amount and correct it later; the deposit is credited against the tax and partly refunded if the estimate was too high.
• Remember that the Estate Information Return is due within 180 calendar days after the certificate is issued.
• Ask a lawyer or accountant to review the figure if the estate includes business interests, assets abroad or disputed ownership.

Frequently asked questions