- An estate valued at $50,000 or less pays no estate administration tax.
- You must still apply for the certificate and file the Estate Information Return even when no tax is owed.
- The Estate Information Return is due within 180 calendar days after the certificate is issued, even if the value is $0.
- Estates of $150,000 or less can use the Small Estate Certificate process.
If you are the executor of a modest estate, you may be hoping that probate will cost very little. In Ontario, the main government charge is estate administration tax, and the first $50,000 of an estate is exempt from it.
That does not mean the paperwork disappears. This article explains how the exemption works, what you still have to do, and what changes if the estate is a little larger than $50,000.
How the $50,000 exemption works
For applications made on or after January 1, 2020, estate administration tax is $15 for every $1,000 of estate value, with the first $50,000 exempt. Estates valued at $50,000 or less therefore pay no tax.
If the estate is worth more, the exemption still helps. The tax is calculated only on the amount above $50,000, after the value is rounded up to the nearest thousand dollars. For example, a $240,000 estate owes $2,850.
Before January 1, 2020, a different two-band structure applied, charging $5 per $1,000 on the first $50,000. It no longer applies to current applications.
What you still have to do with no tax owing
The representative must still apply for the certificate and file the Estate Information Return even when the estate is $50,000 or less. The return must be filed with the Ministry of Finance within 180 calendar days after the certificate is issued, even if the calculated value is $0.
Missing the filing has consequences. A representative who fails to file, or who files false or misleading statements, may be fined at least $1,000 and up to twice the tax payable, imprisoned for up to two years, or both. If the deadline falls on a weekend or holiday, it moves to the next business day.
Do you need probate at all?
Probate asks the court to formally approve the will and confirm or grant authority to act. Ontario says that if the deceased owned real property or assets held by a financial institution, the estate normally has to be probated, and executors should check whether the institution requires a certificate before applying.
So a low value does not automatically mean you can skip the process. Whether a certificate is needed depends on the assets and on what each bank or institution requires. Confirm with the institution, or with a lawyer, before you decide.
The Small Estate Certificate option
A small estate, valued at $150,000 or less, can use the Small Estate Certificate process with Forms 74.1A, 74.1B and 74.1C. No estate administration tax is payable if the value is $50,000 or less, and tax is payable on filing for values between $50,000 and $150,000.
The signed application must be sent to everyone entitled to a share at least 30 days before filing, and the Estate Information Return is still due within 180 calendar days of the certificate.
| Estate value | Estate administration tax | Return due |
|---|---|---|
| $50,000 or less | None | Within 180 calendar days of certificate |
| $50,000 to $150,000 | Payable on filing | Within 180 calendar days of certificate |
What counts toward the $50,000
The value includes Ontario real estate less encumbrances like mortgages, bank accounts, investments, vehicles, property held in another person's name, insurance proceeds payable to the estate, and RRSPs, RRIFs or TFSAs without a beneficiary designation.
Items that pass outside the estate, such as jointly held assets going to the surviving owner and plans or insurance with a named beneficiary, are excluded. Funeral expenses, credit card debt and lawyer's fees cannot be deducted. This is why an estate that feels small can still exceed $50,000 once all assets are added up.
What to do next
- List all assets and their values at the date of death, noting which pass by joint ownership or beneficiary designation.
- Ask each bank or institution whether it requires a certificate before releasing funds.
- Decide with a lawyer whether the regular process or the Small Estate Certificate process fits the estate.
- Send the signed application to everyone entitled to a share before filing.
- Diarize the 180-day deadline for the Estate Information Return as soon as the certificate is issued.
- Before distributing property, ask about a CRA clearance certificate, since a representative who distributes without one can be liable for unpaid tax up to the value distributed.
Frequently asked questions
Do I pay any probate tax if the estate is worth less than $50,000?
No. Estates valued at $50,000 or less pay no estate administration tax. You must still apply for the certificate and file the Estate Information Return.
Is the first $50,000 exempt if the estate is bigger?
Yes. The tax is $15 per $1,000 with the first $50,000 exempt, so only the value above $50,000 is taxed. The value is rounded up to the nearest thousand first.
Do I still file the Estate Information Return if the value is $0?
Yes. It must be filed within 180 calendar days after the certificate is issued, even if the calculated value of the estate is $0.
Can a small estate use a simpler process?
An estate valued at $150,000 or less can use the Small Estate Certificate process. Whether it suits your situation depends on the facts, so a lawyer can confirm.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Probate for a small estate — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- Ontario.ca – Apply for probate — ontario.ca
- CRA – Apply for a clearance certificate — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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