Worked Examples and Checklists
How to calculate Ontario estate administration tax (probate tax) in 2026
Step-by-step Ontario estate administration tax: what is included, rounding to the next $1,000, worked examples and the 180-day Estate Information Return.
Ontario estate administration tax (EAT), often called probate tax, is calculated in three steps: add up the value of the estate that passes under the will or intestacy, subtract $50,000, and charge $15 for each $1,000 or part of $1,000 of what is left (Estate Administration Tax Act, 1998, s. 2(6.1), for applications made on or after 1 January 2020). The result is 1.5% of the value above $50,000, with that excess rounded up to the next $1,000, so the tax is always a multiple of $15. An estate of $50,000 or less pays nothing, though the estate trustee must still file an Estate Information Return within 180 days after the estate certificate is issued. Debts are not deducted, except mortgages and other encumbrances on Ontario real estate.
Part of the worked examples for estates and separation. General information, not legal or tax advice.
Step 1: decide what is in the estate
| Included | Excluded |
|---|---|
| Ontario real estate in the deceased's sole name, minus registered mortgages and liens | Real estate outside Ontario |
| Bank accounts, including foreign accounts | Assets held jointly with right of survivorship that pass to the surviving owner |
| Investments, including RRSPs, RRIFs and TFSAs that have no named beneficiary (or name the estate) | RRSPs, RRIFs, TFSAs and pensions with a named living beneficiary or successor holder |
| Vehicles and boats, wherever located | Life insurance paid to a named beneficiary |
| Business interests, loans owed to the deceased, refunds and other property | The CPP death benefit |
| Insurance payable to the estate | Property that the deceased held in trust for someone else |
Values are fair market value at the date of death. The Ontario government's guidance on the Estate Information Return sets out the categories and the documents to keep.
Step 2: subtract only what the Act allows
- Deduct: mortgages, liens and other encumbrances registered against Ontario real estate in the estate.
- Do not deduct: credit card balances, lines of credit (unless secured on the real estate), funeral costs, income tax owing, legal fees or the executor's compensation.
This is the single biggest source of mistakes: an estate with $300,000 of assets and $100,000 of unsecured debt is taxed on $300,000, not $200,000.
Step 3: apply the rate and round up
Formula:
Tax = $15 × (number of $1,000 units, rounded up, by which the value exceeds $50,000)
Example A (illustrative): a condo and savings. Condo $480,000 with a $130,000 mortgage; savings $25,500; car $9,000.
- Condo net of mortgage: $480,000 − $130,000 = $350,000.
- Total value: $350,000 + $25,500 + $9,000 = $384,500.
- Above $50,000: $334,500, which is 335 units of $1,000 (rounded up).
- Tax: 335 × $15 = $5,025.
Example B (illustrative): the same estate with a $40,000 line of credit. The tax does not change: $5,025. The line of credit is paid from the estate after probate.
Example C (illustrative): small estate. Bank accounts $46,000; car $3,500. Total $49,500. Tax $0. An Estate Information Return is still required if a certificate is issued. This estate may qualify for the small estate certificate.
Example D (illustrative): a house and an RRSP with no beneficiary. House $900,000 (no mortgage); RRSP $200,000 payable to the estate; accounts $50,000. Total $1,150,000. Above $50,000: 1,100 units. Tax $16,500. Had the RRSP named a beneficiary, the value would be $950,000 and the tax $13,500, a $3,000 difference. The income tax on the RRSP is due either way.
The Ontario estate administration tax estimator does this arithmetic, without the rounding step.
When and how the tax is paid
- The estate trustee applies to the Superior Court of Justice for a certificate of appointment of estate trustee (with or without a will), or a small estate certificate.
- The tax is paid with the application, based on the estimated value. Many banks will release funds from the deceased's account by cheque or bank draft payable to the Minister of Finance for this purpose.
- Within 180 calendar days after the certificate is issued, the trustee files the Estate Information Return with the Ministry of Finance, listing the assets and their values.
- If the value turns out to be higher, or assets are discovered later, the trustee files an amended return, generally within 60 days of learning of the change, and pays the extra tax. Overpayments can be refunded.
The Ministry of Finance can audit returns. Penalties and offences apply for false or misleading information.
Planning: what actually reduces EAT
| Approach | Effect on EAT | Things to weigh |
|---|---|---|
| Name beneficiaries on RRSPs, RRIFs, TFSAs and insurance | Removes those values | Keep designations consistent with the will; consider who pays the income tax |
| Joint ownership with a spouse | Removes the asset at the first death | Not at the second death; works best between spouses |
| Joint ownership with an adult child | May remove the asset | Presumption of resulting trust; creditor, family law and capital gains risks |
| A secondary will for private company shares or assets that need no probate | Removes those assets from the probated estate | Needs careful drafting by an estates lawyer |
| Gifts during life | Removes the value | Capital gains on gifted property; loss of control |
See probate avoidance and its risks before choosing any of them. A strategy that saves $3,000 in EAT and causes a family lawsuit is not a saving.
FAQ
Is the first $50,000 exempt for everyone, or only small estates?
For applications from 1 January 2020, the first $50,000 is effectively tax-free for every estate: the tax is charged only on the value above $50,000.
Do I have to pay EAT if I don't need probate?
No. The tax is payable only when an estate certificate is issued. If the institutions holding the assets release them without one, there is no EAT.
What if I paid too much?
If the final value is lower than estimated, file an amended Estate Information Return and ask for a refund. Keep valuations and statements.
Does EAT apply to a non-resident's Ontario property?
Yes, to the extent probate is sought in Ontario for that property.
Sources
- Ontario e-Laws — Estate Administration Tax Act, 1998, s. 2; Estates Act
- Government of Ontario — estate administration tax and the Estate Information Return
- Ontario Courts — Superior Court of Justice estate applications
- Steps to Justice — applying to be an estate trustee
