- 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.
- The older two-band structure of $5 and $15 per $1,000 is historic and no longer applies to new applications.
- The estate value is rounded up to the nearest thousand dollars before the rate is applied.
- Mortgages on Ontario real estate can reduce the value, but funeral costs, legal fees and credit card debt cannot.
When someone dies, one of the first questions a family asks is what probate will cost. In Ontario the main government charge is called estate administration tax, and it is often called the probate fee or probate tax. You can estimate it yourself with a little arithmetic.
This article walks through the calculation step by step. You may have heard of a $5 per $1,000 band and a $15 per $1,000 band. That is how the tax used to work, and we explain why it matters only for older applications.
The rule in one sentence
For estate certificate applications made on or after January 1, 2020, the tax is $15 for every $1,000, or part of $1,000, of the estate's value, and the first $50,000 is exempt. That means a single rate applies to everything above $50,000.
The old structure charged $5 per $1,000 on the first $50,000 and $15 per $1,000 on the value above that. It was replaced for applications made on or after January 1, 2020. If you see a calculator or article using two bands for a current application, it is out of date.
Step-by-step: how to calculate it
- Add up the value of the estate assets that count, as at the date of death, in Canadian dollars.
- Subtract registered encumbrances, such as a mortgage or lien, from the value of Ontario real estate.
- Round the total up to the nearest thousand dollars.
- Subtract the $50,000 exemption.
- Multiply the remaining thousands by $15.
The government's own example is a $240,000 estate, which owes $2,850 in tax, calculated on the amount above $50,000.
Quick reference examples
| Estate value | Working | Tax |
|---|---|---|
| $50,000 or less | Exempt | No tax |
| $240,000 | Calculated on the amount above $50,000 | $2,850 |
| $500,000 | (500 − 50) × $15 | $6,750 |
| $1,000,000 | (1,000 − 50) × $15 | $14,250 |
| $2,000,000 | (2,000 − 50) × $15 | $29,250 |
The three larger figures are arithmetic using the official rate rather than amounts quoted from the government. Treat any result as an estimate until the final value is confirmed.
What counts toward the estate value
The value includes Ontario real estate less encumbrances, bank accounts including those at foreign banks, investments, vehicles and vessels wherever located, property held in another person's name, and insurance proceeds payable to the estate. RRSPs, RRIFs and TFSAs count if they have no beneficiary designation.
Some things are left out. Jointly held assets that pass automatically to the surviving owner, registered plans and insurance with a named beneficiary, and the CPP death benefit are excluded. Real estate outside Ontario is excluded on a full estate certificate, although foreign bank accounts and vehicles or vessels are still counted.
Be careful about what you deduct. Funeral expenses, lawyer's fees, loans and interest, vehicle debt, credit card debt, real estate commissions and unregistered loans or lines of credit cannot be subtracted from the estate value.
When and how the tax is paid
The tax is paid as a deposit when you apply and becomes the tax once the certificate is issued. If probate is not issued, the deposit is refunded, and if no application is made, no tax is due.
At the court office, payment may be made by cash or debit where available, or by certified cheque, solicitor trust cheque, trust company cheque or bank draft payable to the Minister of Finance. In some cases the tax can be paid on a sworn or affirmed estimate, with a sworn statement of the actual value due within six months and any balance paid then.
If you cannot pay the tax when applying, you can ask a judge for an order allowing payment later, once estate assets are accessible.
What to do next
- List every asset and its date-of-death value, and note which ones pass by joint ownership or beneficiary designation.
- Gather mortgage and lien statements for any Ontario real estate.
- Run the calculation above and keep your working.
- Remember the Estate Information Return is due within 180 calendar days after the certificate is issued, even if the calculated value is $0.
- If values are unclear or the estate is complex, ask a lawyer or accountant to confirm the figure before you file.
Frequently asked questions
Is there still a $5 per $1,000 rate in Ontario?
Not for current applications. The $5 per $1,000 band on the first $50,000 applied only to applications made before January 1, 2020. Today the first $50,000 is exempt and $15 per $1,000 applies above it.
Does the tax apply to the full value of a mortgaged home?
No. A registered encumbrance such as a mortgage or lien can be deducted from the value of Ontario real estate, so the tax is based on equity. Unregistered loans and lines of credit cannot be deducted.
Do I need a formal appraisal?
The Ontario guidance describes estate value as at the date of death and allows a sworn estimate with a later sworn statement of value. Whether an appraisal makes sense for a particular asset depends on the facts, so it is worth confirming with a lawyer.
How long does it take to get the certificate?
Ontario says applications are typically processed within 15 business days, but it can take longer if documents are missing or a judge must decide an issue.
Sources
- Ontario.ca – Estate Administration Tax — ontario.ca
- Ontario.ca – Administering estates — ontario.ca
- Ontario.ca – Calculating the Estate Administration Tax — ontario.ca
- Ontario.ca – Apply for probate — 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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