Estate Administration Tax in Ontario, Explained With Worked Examples
Short answer: there is no tax on the first $50,000 of an estate’s value, and $15 for every $1,000 (or part of one) above that — 1.5% in practice. The number that trips executors up isn’t the rate, it’s the base: Estate Administration Tax is calculated on the gross value of everything that passes through the will, before any debts (other than a mortgage on real estate) are subtracted. Here’s the formula, the rounding rule, and full math on three estate sizes.
The formula
If you apply for an estate certificate on or after January 1, 2020, Ontario’s Ministry of Finance calculates Estate Administration Tax like this:
- $0 on the first $50,000 of estate value.
- $15 per $1,000 (or part thereof) on the value above $50,000.
The estate’s total value is rounded up to the nearest $1,000 before the tax is calculated. An estate worth $239,250 is treated as $240,000.
(If you’re settling an estate where the certificate was applied for before January 1, 2020, different, higher rates apply on the first $50,000 — see your estates lawyer, since that scenario is now rare.)
Worked example: the government’s own number
Ontario’s official guidance walks through a $240,000 estate:
- $0 per $1,000 on the first $50,000
- $190,000 remains ($240,000 − $50,000)
- $190,000 ÷ $1,000 = 190
- 190 × $15 = $2,850 payable
Here’s that same math applied to three more common sizes:
A $100,000 estate. $50,000 exempt, $50,000 taxable. $50,000 ÷ $1,000 = 50. 50 × $15 = $750.
A $500,000 estate — a plausible value for a single-owner GTA home plus modest savings. $450,000 taxable. 450 × $15 = $6,750.
A $1,000,000 estate. $950,000 taxable. 950 × $15 = $14,250.
Multiply the taxable thousands by $15, every time — that’s the whole calculation. Ontario also publishes an online calculator if you’d rather not do it by hand, and it’s worth confirming your own figure against it before you file.
What actually counts toward “estate value”
This is where estates get under- or over-valued, and it matters because the probate application (Form 74A) asks you to swear to the number.
Included: Ontario real estate (net of a mortgage, collateral mortgage, or lien registered against it — but nothing else), bank accounts anywhere, investments including TFSAs, RRSPs, and RRIFs without a named beneficiary, vehicles and boats wherever located, business interests, and any property held in someone else’s name on the deceased’s behalf.
Excluded: assets with a named beneficiary (life insurance, or an RRSP/RRIF/TFSA with a beneficiary designation), property held in joint ownership with right of survivorship, real estate located outside Ontario, and the CPP death benefit.
Cannot be deducted, even though it feels like they should reduce the number: funeral expenses, the estate lawyer’s own fee, credit card debt, unregistered loans, a line of credit, or a car loan. Only a registered encumbrance on real property comes off the top. A $700,000 house with a $200,000 mortgage counts as $500,000 toward the estate — a $30,000 unsecured line of credit against the same estate counts as $0 of deduction.
That gross-value rule is why an estate that looks debt-heavy on paper can still generate a large tax bill: the tax doesn’t see the debts, only what’s registered against the specific asset.
When you pay, and what comes after
The tax is paid as a deposit at the moment you file the application for the estate certificate with the Superior Court of Justice — by certified cheque, bank draft, trust cheque, or debit, payable to the Minister of Finance. If the certificate is never issued, the deposit is refunded. Once it is issued, the deposit becomes the tax, and the debt is now legally owed by the estate.
Two follow-up obligations then apply regardless of whether any tax was owed:
- Estate Information Return, 180 calendar days. Filed with the Ministry of Finance after the certificate issues — even for a $0 estate. If you applied using an estimated value, an amended return confirming the actual value is due within 60 days of that value being finalized.
- Amendments for new information. If you discover an asset you missed, or the reported value was wrong, you have 60 days from discovering it to file an amended return. Executors who don’t file, or who misstate the estate’s value, face a fine of at least $1,000 and up to twice the tax owed — or up to two years’ imprisonment, under the Estate Administration Tax Act, 1998.
If you overpaid, refunds can be requested up to 12 years after the certificate was issued (or within 2 years of a Notice of Assessment), provided the Estate Information Return was filed within four years of the certificate.
FAQ
Is Estate Administration Tax the same thing as “probate fees”? Yes — it’s the modern, formal name for what most people still call probate fees in Ontario.
Does the $50,000 exemption mean small estates skip probate entirely? No, those are separate thresholds. The $50,000 figure is only about tax. Whether you need probate at all — or qualify for the simplified process available to estates of $150,000 or less — is a different question.
Can I deduct the mortgage on an inherited house from the estate’s value? Yes, a registered mortgage, collateral mortgage, or lien against the specific property reduces that property’s contribution to the estate total. Unsecured debts like credit cards or lines of credit cannot be deducted, which matters if you’re weighing selling the house to cover estate debts.
What happens if I estimate the estate value wrong on the application? You file using your best information at the time, then true it up: the Estate Information Return is due 180 days after the certificate, and any correction after that is due within 60 days of discovering it. Filing late or misstating the value is a personal-liability issue for the estate trustee, not just a paperwork one.
Does the tax apply to property that gets a capital gains hit too? They’re calculated independently — Estate Administration Tax is a provincial deposit paid to get the certificate; capital gains on the deemed disposition is a federal tax matter assessed separately on the estate’s final return.
If you’re valuing an estate and want a second set of eyes before you file — especially where a mortgaged property or estimated values are involved — a short consultation can confirm the number and flag anything that could trigger an amended return later. Talk to us — Ontario only.
Sources: Ontario — Estate Administration Tax (rate structure, rounding rule, worked example, included/excluded assets, deposit and refund process, Estate Information Return deadlines, penalties); Ontario — Calculating Estate Administration Tax (official calculator); Estate Administration Tax Act, 1998, S.O. 1998, c. 34, Sched. — CanLII; Ontario — Apply for probate of an estate (Form 74A, application process).
General information for Ontario, not legal advice. Reviewed by Angelos Spingos. Last reviewed July 24, 2026.