When Is the Final Tax Return Due for Someone Who Died in Canada?

When someone dies, the person handling their affairs usually faces a tax deadline they have never heard of. The final return is a regular personal tax return, but its due date changes depending on the date of death, and there are special cases for business owners and for people who die early in the year.

This article sets out the federal deadlines the Canada Revenue Agency (CRA) applies, how they differ for filing and for payment, and what happens if a deadline is missed. Provincial and Québec filing steps are separate and are not covered here.

This article covers Canadian federal tax law, which applies in every province.

The basic rule: it depends on the month of death

A final T1 return must be filed for every person who dies. The due date turns on when in the calendar year the death happened.

For a death after October, the Income Tax Act says the legal representative must file by the later of the normal due date and the day that is 6 months after the day of death.

Payment does not get the same extra time

A later filing date does not mean a later payment date. The CRA says the payment due date does not change, so you may need to pay before you file to avoid interest. Any overpayment is generally refunded once the return is assessed.

If a due date falls on a weekend or CRA-recognized holiday, a return is on time if it is received or postmarked by the next business day, and a payment is on time if it is received the first business day after the due date.

No instalments are required after the date of death. Only instalments that were due but unpaid before death must be paid.

Special cases that change the dates

• Business owners: if the deceased was self-employed, or their spouse or common-law partner living with them ran a business on the date of death, a death from January 1 to December 15 gives a June 15 filing date the following year. A death from December 16 to December 31 gives a due date 6 months after death. The payment date is still not extended.
• No extension for tax shelters: the business extension is not available where business expenditures were mainly the cost of tax shelter investments.
• Death before the prior-year return was filed: if the person died in 2026 on or before the 2025 filing due date and the 2025 return was not filed, the 2025 return and any balance owing are due 6 months after death. A final 2026 return is also required, so two returns are needed.
• Surviving spouse in that situation: the survivor's own 2025 return has the same filing due date, but any balance they owe must still be paid by April 30, 2026 to avoid interest.
• Older unfiled years: if a return for an earlier year was never filed, the legal representative must make sure it is filed, and other prior-year returns already due keep their original dates.

The CRA's examples use 2026, but the same pattern applies to other years. Because the details turn on the exact date of death, it is worth confirming your dates with a lawyer or accountant.

Optional returns and the estate's T3

Some income can be reported on separate optional returns, which are not required and may reduce or eliminate tax. The Return for Rights or Things, marked 70(2), is due on the later of one year after the date of death and 90 days after the Notice of Assessment or Reassessment for the final return was sent. Payment is generally due April 30, the same as the final return, though part may be deferred in some cases.

A partner or proprietor return has the same due dates as the final return. If rights or things are distributed to beneficiaries before the election period ends, section 70(2) does not apply to them, and the beneficiary reports the amount when received.

Income the estate earns after death is reported on a T3 return, not the final T1. A T3 is needed if the estate earns income after death or distributes property to beneficiaries, and it is due 90 days after the trust's tax year-end, or 90 days after the final distribution if the trust ceases to exist. A graduated rate estate may choose any year-end up to one year after death, while a non-graduated-rate testamentary trust has a December 31 year-end.

Late filing penalties and interest

For a late final return with a balance owing, the penalty is 5% of the balance plus 1% of the balance for each full month late, up to 12 months. It may be higher if a late-filing penalty was assessed on the deceased's return for any of the 3 previous years. Filing on time avoids this penalty even if the balance cannot be paid in full.

Interest is compounded daily on unpaid amounts from the day after the due date until paid, and interest also applies to late-filing penalties. A late T3 return carries an alternative penalty of $25 per day even with no balance owing, with a minimum of $100 and a maximum of $2,500.

The CRA may cancel penalties or interest if a late filing was caused by circumstances beyond your control.

What to do next

• Confirm the exact date of death and work out which due date applies.
• Check whether the deceased or a cohabiting spouse or partner ran a business.
• Find out whether the prior-year return was filed.
• Notify the CRA of your role as legal representative before accessing tax records.
• Estimate any balance owing and plan to pay by the payment date, even if the filing date is later.
• Ask a lawyer or accountant if you are unsure which deadline applies.

Remember that the legal representative must also get a clearance certificate before distributing property, or they may be personally liable.

Frequently asked questions