How Much Is Estate Administration Tax in Ontario? Rates Explained

If you are about to apply for probate in Ontario, you will need to pay the Estate Administration Tax as a deposit when you file. Knowing the rate, and what counts toward the estate's value, lets you work out the amount before you go to the court office.

This article sets out the current rate, the steps for calculating it, and what to include and leave out. It does not work through sample figures. Walk through the steps with your own numbers, and have a lawyer or accountant check them.

The current rate

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.

The estate's value is rounded up to the nearest thousand dollars to calculate the tax. The tax is paid by the estate, not personally by the estate representative.

Steps to calculate the tax

• Add up the value of the assets that count toward the estate.
• Subtract registered mortgages and liens on Ontario real property.
• Round the total up to the nearest thousand dollars.
• If the result is $50,000 or less, no tax is payable.
• Otherwise, subtract $50,000 and multiply by $15 for each $1,000 (or part thereof) of what remains.

Because the rate applies to each $1,000 or part of it, a value that falls just over a thousand-dollar mark is treated as the next full thousand.

What counts toward the value

Ontario real estate counts at its appraised value on the date of death, less encumbrances such as mortgages or liens. That appraised value is used even if the property sells for more or less shortly after the death. Other assets are valued at fair market value at the time of death.

Also included are bank accounts, investments, vehicles and vessels wherever located, business interests, and insurance payable to the estate. RRSPs, RRIFs and TFSAs are included where the estate is the beneficiary.

Left out are insurance paid to a named beneficiary, jointly owned assets that pass automatically to the survivor, registered plans with a beneficiary designation, and real estate outside Ontario. A tenant in common's share, however, does not pass automatically and counts toward the value.

Funeral expenses, lawyer's fees, loans, vehicle debt, credit card debt, real estate commissions and lines of credit do not reduce the value.

Paying, filing and getting it right

The tax is paid as a deposit when the application is filed, and becomes the tax once the certificate is issued. At the court office you can pay by cash or debit (where available), certified cheque, a solicitor's or firm trust account cheque, a trust company cheque, or a bank draft, with cheques and drafts payable to Minister of Finance.

An Estate Information Return must be filed within 180 calendar days after the certificate is issued, even if no tax is owed. If an estimated value was used on the application, an amended return is due within 60 calendar days after the actual value is given to the court. If additional tax is owing, it 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.

For estates of $150,000 or less, a small estate process may apply, though tax is still paid on value over $50,000.

What to do next

• Gather statements, appraisals and mortgage details for every asset.
• Sort assets into those that count and those left out.
• Calculate the tax using the steps above, then ask a lawyer or accountant to check it.
• Prepare the funds in an accepted form, payable to Minister of Finance.
• Note the 180-day return deadline once the certificate is issued.

Frequently asked questions