Ontario Estate Administration Tax Rates: Current Rate Table

If you are about to apply for a Certificate of Appointment of Estate Trustee, one of the first practical questions is how much tax the estate must pay to the province. In Ontario this is called estate administration tax, and many people still call it probate tax.

This article sets out the current rate, a table of worked examples at common estate values, and the rules about what counts toward the estate's value. The figures are a guide. Your own estate's numbers depend on its specific assets, so confirm them with a lawyer or accountant before you file.

The current rate in plain terms

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. For an estate worth more than that, the tax is $15 for each $1,000 (or part of $1,000) of the value that is above $50,000.

The older two-tier system, with a lower $5 per $1,000 rate on the first $50,000, applied to applications from June 8, 1992 to December 31, 2019. That $5 tier no longer applies to current applications.

The tax is payable by the estate to the Crown in right of Ontario once an estate certificate is issued. An estate certificate includes a certificate of appointment of estate trustee, and that includes a small estate certificate.

Rate table with worked examples

The table below applies the current rule to common estate values. Only the $240,000 example appears as an official worked example; the others are straightforward arithmetic from the same rate.

The official example for a $240,000 estate is $0 on the first $50,000 and $15 per $1,000 on the remaining $190,000, for tax of $2,850. A $100,000 estate pays $15 x 50, or $750; a $500,000 estate pays $15 x 450, or $6,750; and a $1,000,000 estate pays $15 x 950, or $14,250. Likewise, $75,000 gives $375, $250,000 gives $3,000 and $750,000 gives $10,500.

How the calculation works step by step

• Work out the value of the estate, which is the total value of the property that belonged to the deceased at death (as disclosed to the court), less the actual value of encumbrances on real property.
• Round the value up to the nearest $1,000.
• If the rounded value is $50,000 or less, no tax is payable.
• Otherwise, subtract $50,000, divide by 1,000, and multiply by $15.

Rounding up means a value that falls part-way into a $1,000 band is treated as the next full $1,000. Small differences in value can therefore shift the tax at the edges of a $1,000 band.

What counts toward the estate's value

The value is the fair market value at the date of death, supported by documents such as account statements or appraisals. For real estate, the appraised value at the date of death is used. The applicant must give the court a sworn or affirmed statement of the total value of the property that belonged to the deceased at death.

Only encumbrances on real property reduce the value. Funeral expenses, lawyer fees, loans and interest, vehicle debt, credit card debt, real estate commissions, unregistered loans and lines of credit cannot be deducted. If a grant is limited, the value statement need only cover the property the grant affects. A resealed or ancillary certificate includes only the Ontario assets of the estate.

When and how the tax is paid

You calculate and pay the tax when the application is filed with the Superior Court of Justice, unless no tax is payable or a court orders deferral. Form 74A asks for the values of real property, personal property and the total estate. The payment is treated as a deposit, which becomes the tax once the certificate is issued and is refunded if no certificate is issued.

If the actual value is not yet known, the deposit can be based on an estimate, and a portion is refunded if the estimate was too high. Where an estimate is used, the applicant undertakes to file a sworn statement of the actual value and pay any shortfall within six months. In urgent cases of financial hardship, a judge may allow a certificate before the deposit if adequate security is provided.

Accepted payment methods at the court office include cash or debit (where available), certified cheque, a lawyer's or firm's trust account cheque, trust company cheque, or bank draft, with cheques payable to the Minister of Finance. Ontario advises checking with the court first.

The tax is paid by the estate, and the estate trustee is liable only in a representative capacity. Separately, the Estate Information Return must be filed within 180 calendar days after the certificate is issued, even if the estate value is $0. It is required even when the estate is $50,000 or less and no tax is payable.

What to do next

Before you file, build a clear picture of the estate so the figure you swear to is accurate. Mistakes can lead to amended returns, reassessments or, in serious cases, penalties, so it is worth getting the numbers right the first time.

• List every asset and note whether it is in Ontario, outside Ontario, jointly held or subject to a beneficiary designation.
• Gather date-of-death statements and appraisals, especially for real estate.
• Record mortgages and liens registered against Ontario real property, since these are the only debts that reduce the value.
• Round your total up to the nearest $1,000 and run the calculation.
• Ask the financial institutions what they require, because Ontario says assets held by a financial institution normally must be probated and the institution sets its own requirements.
• Check whether the estate is within the Small Estate Certificate limit of $150,000 or needs a full certificate.
• Keep your records for four years and diarize the return deadline.

If the estate is complicated, values are uncertain, or assets turn up later, speak with an Ontario estates lawyer or accountant. Newly discovered property after the certificate issues requires a sworn statement of its value within six months, and tax on it is payable when that statement is delivered.

Frequently asked questions