- For certificates applied for on or after January 1, 2020, there is no tax on the first $50,000 of the estate, and $15 is charged for every $1,000, or part of $1,000, above that.
- Only mortgages, liens and similar encumbrances on real property can be deducted, and only from that property's value.
- Some assets, such as jointly held property that passes automatically and registered plans with a named beneficiary, are left out of the estate value.
People often search for a probate calculator because they want a rough idea of the cost before they apply. In Ontario, the cost the court collects is called Estate Administration Tax. It is often called probate fees or probate tax.
This article walks through how the calculation works, using the two examples that fit Ontario's method. It then explains which assets count toward the value, so you can think through a house, bank accounts and investments. Your own estate may have details that change the result, so treat this as a guide to the method.
The basic formula
For estate certificates applied for on or after January 1, 2020, Ontario charges no Estate Administration Tax on the first $50,000 of the estate's value. Above $50,000, the tax is $15 for every $1,000, or part of $1,000.
That is 1.5%. It is not $50 per $1,000, which is a mistake you may see online.
Before you calculate, round the estate value up to the nearest $1,000.
- Start with the total value of the estate, rounded up to the nearest $1,000.
- Charge $15 for each $1,000 of what remains.
Two worked examples
Ontario's own example is a $240,000 estate. The first $50,000 is taxed at $0, and the remaining $190,000 is taxed at $15 per $1,000, so the tax is $2,850. Using the same method, a $500,000 estate pays 450 × $15, which is $6,750.
| Estate value | Taxed at $0 | Taxed at $15 per $1,000 | Tax |
|---|---|---|---|
| $240,000 | First $50,000 | Remaining $190,000 | $2,850 |
| $500,000 | First $50,000 | 450 units of $1,000 | $6,750 |
The figures in the table come from the method in the rule. Your estate value will differ, but the steps are the same.
What counts toward the estate value
The tax is based on all assets the deceased owned at the time of death. That includes Ontario real estate (less mortgages or liens on it), bank accounts (including foreign banks), investments, vehicles and vessels wherever located, property held in another person's name, business interests, and insurance paid to the estate.
For a typical estate with a house, accounts and investments, you add the house's value (less any mortgage on it), the accounts and the investments. Then you apply the formula above.
What can be left out, and what cannot be deducted
Some assets are not included in the estate value:
- Assets held jointly that automatically become the property of the other owner or owners on death.
- Registered Pension Plans, RRSPs, RRIFs and TFSAs that have a beneficiary designation or beneficiary declaration. If there is no designation, these plans are included.
- Real estate located outside Ontario.
- Assets the deceased no longer owned at the time of death, and Canada Pension Plan death benefits.
Deductions are narrow. Only mortgages, liens and similar encumbrances on real property can be deducted, and only from that property's value. Funeral expenses, legal fees, loans and interest, vehicle debt, credit card debt, lines of credit, unregistered loans and real estate commissions cannot be deducted.
Valuing assets and next steps
Assets are valued at fair market value on the date of death. Real estate is valued at its appraised value on that date, even if it later sells for more or less. Your values must be supported by documents such as account statements or an appraiser's opinion, and a business may need a professional appraiser.
If you cannot yet pin down the total, some applicants can pay on an estimated value that they swear or affirm in the application. They must undertake to file a sworn statement of the total value and pay any balance owing within six months. An applicant who cannot pay at filing can ask a judge for an order to pay later.
- List every asset and its value on the date of death.
- Mark which assets pass outside the estate, such as joint property or plans with a named beneficiary.
- Gather statements and appraisals to support each value.
- Diarize the Estate Information Return, due within 180 calendar days after the certificate is issued.
- Ask a lawyer or accountant to check your figures if the estate is complex.
Frequently asked questions
Is the Ontario probate rate $50 per $1,000?
No. For certificates applied for on or after January 1, 2020, the rate is $15 per $1,000, or part of $1,000, above the first $50,000, which is 1.5%.
Do I deduct funeral costs or debts from the estate value?
Generally no. Funeral expenses, legal fees, credit card debt, lines of credit and similar debts cannot be deducted. Only mortgages, liens and similar encumbrances on real property can be deducted, and only from that property's value.
Does a joint bank account count toward the tax?
Assets held jointly that automatically pass to the other owner on death are not included in the estate value. Whether an account is truly held that way can depend on the facts, so it is worth confirming with a lawyer.
Do I still file a return if the estate pays no tax?
Generally yes, if an estate certificate is issued, although no Estate Information Return is required for some certificates, such as a Certificate of Appointment of Estate Trustee During Litigation or a certificate for a succeeding estate trustee. The Estate Information Return must be filed within 180 calendar days after the certificate is issued, even if the estate value is $0.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Calculating the Estate Administration Tax — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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