Is Ontario probate tax 1.5% of the entire estate?
No. For applications from 1 January 2020, the first C$50,000 is exempt. The excess is charged at C$15 per C$1,000 or part thereof.
Ontario Estate Administration Tax: Probate Tax Rates and Examples
Ontario Estate Administration Tax, often called probate tax, applies when an estate certificate is applied for and issued. It is paid from the estate and differs from tax on inherited income.
Updated
Quick Answer
For estate-certificate applications from 1 January 2020, the first C$50,000 of estate value is exempt. Above that, the tax is C$15 for each C$1,000 or part of C$1,000. Use the value subject to the certificate, rather than assuming every asset or debt belongs in the calculation.
The Ontario probate-tax formula
For a qualifying estate value of C$50,000 or less, this tax is zero. For a higher value, subtract C$50,000, divide by C$1,000, round up to a whole number and multiply by C$15.
A flat 1.5% calculation can understate the result if it ignores the rounding rule. The examples below assume that the stated value is the amount subject to the certificate.
Worked examples in Canadian dollars
| Estate value subject to the certificate | Calculation above the exemption | Illustrative tax |
|---|---|---|
| C$50,000 | No amount above C$50,000 | C$0 |
| C$50,001 | 1 rounded-up unit × C$15 | C$15 |
| C$250,000 | 200 units × C$15 | C$3,000 |
| C$1,000,000 | 950 units × C$15 | C$14,250 |
Start with the correct estate value
Before applying a formula, prepare an inventory showing ownership, date-of-death values and how each asset passes. Ask the estate lawyer which assets must be included in the certificate value.
Do not copy the net-estate number from an inheritance-tax illustration without checking the valuation rules. Keep the probate working separate from final-return gains and income calculations.
When is the tax payable?
A deposit is paid with the estate-certificate application and becomes the tax when the certificate is issued. If no certificate is applied for or issued, this tax is not owed. Whether a certificate is needed depends on the estate.
Use the current Ontario guidance to check the application and Estate Information Return requirements, including cases with no tax payable.
Probate tax is not inheritance tax
This illustration addresses one Ontario charge. It does not calculate final-return income tax, estate income or beneficiary taxes.
The Canada guide explains those separate tax questions. The Canada inheritance calculator also excludes Ontario probate tax, so its zero inheritance-tax result cannot be used as this probate calculation.
What To Know
- The C$50,000 exemption is applied once to the estate value, not once per beneficiary.
- Round the amount above the threshold up to whole C$1,000 units.
- This tax does not replace the deceased person final income-tax calculation.
What To Do Next
- Confirm whether an estate certificate is required.
- Establish the estate value under the Ontario certificate rules.
- Apply the threshold and rounding, then check filing requirements with the official guidance.
FAQ
Does each heir get a C$50,000 probate exemption?
No. This threshold applies to the estate value used in the calculation, not separately to each heir.
Does a zero probate-tax bill mean no income tax is due?
No. The final return and income earned by the estate are separate calculations.
Next Steps on die.tax
Inheritance and estate taxes in Canada
Separate inheritance receipts, gains, income and provincial charges.
Canada inheritance tax illustration
Read the model exclusions; probate tax is not included.
How much can you inherit tax free?
Understand why tax-free limits differ by jurisdiction and tax type.
Related Death Tax Questions
Sources
Illustrative educational references for this topic.