Estate Administration Tax Ontario: Who Pays It and When It Is Due

If you are settling an estate in Ontario and applying for a certificate of appointment of estate trustee (probate), one of your first questions is likely who pays the Estate Administration Tax and when. The short answer is that the estate pays it, at the time you file the application.

This article walks through the timing, the calculation, the ways to pay and what happens if the amount turns out to be wrong. Your situation may have details that change the answer, so a lawyer or accountant can confirm the specifics.

Who is responsible for paying

The tax is paid by the estate, not personally by the estate representative. The accepted ways to pay at the court office are set out below. How the payment is arranged in your case depends on your situation, so it is worth confirming with a lawyer.

It is also worth knowing the tax is not automatic. It is charged only when an estate certificate is applied for and issued. If no certificate is applied for or issued, no tax is owed. Whether you need a certificate at all depends on the assets and on what institutions will accept, which a lawyer can help you assess.

When the payment is due

The tax is paid as a deposit when the probate application is filed with the court. Once the probate certificate is issued, the deposit becomes the Estate Administration Tax.

For small estates valued at $150,000 or less, the tax is also paid when the application is filed, unless it is not payable or the court orders it deferred. Whether deferral is available in your case depends on the facts.

The application form (Form 74A) asks for the total value of real property, the total value of personal property and the total estate value. That total is what the tax is based on, so it is worth getting right before you file.

How much the tax is

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 of $1,000) of value over $50,000. The estate's value is rounded up to the nearest thousand dollars before calculating.

Small estates still pay tax on value over $50,000, up to the $150,000 cap. Which assets make up the value is a separate question, and the main rule is that only encumbrances on real property can be deducted, not debts like credit cards or funeral costs.

How the payment can be made

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".

If the estate is later found to owe more, the additional tax can be paid to the Superior Court of Justice or the Ministry of Finance with an affidavit setting out the revised value of the estate at the time of death.

Refunds work differently depending on timing. A deposit is requested back from the Superior Court of Justice, and only if no certificate has been issued. A refund of tax already paid is requested from the Ministry of Finance, not at a courthouse.

What to do next

• List the estate's assets and gather statements and appraisals for each.
• Total the real property and personal property values for the application form.
• Confirm the accepted payment method with the court office before you attend.
• Check whether the estate is a small estate of $150,000 or less.
• Diarize the Estate Information Return, due within 180 calendar days after the certificate is issued.
• Ask a lawyer or accountant about anything unclear, such as joint property or registered plans.

Frequently asked questions