Updated Checked by the Tax-Services.ca editorial team How we check
An estate tax accountant in Canada mostly handles income tax, not a tax on inheritances. We found no separate federal estate tax on the CRA pages. What the CRA does require is a final T1 return for the person who died, and often a T3 return for the estate afterwards. Provinces add a probate fee or tax on the estate’s value, and in Ontario that’s $8,250 on a $600,000 estate.
What does an estate tax accountant actually file?
The CRA says the representative files a final T1 Income Tax and Benefit Return. It reports income and increases in the value of property and investments up to the date of death. The representative is the executor named in the will, an administrator appointed by a court, or the liquidator in Quebec.
The CRA also allows up to three optional T1 returns, for rights or things, for business income between fiscal year end and death, and for income from another person’s estate. Used well, they can lower the total tax.
Then there’s the T3 trust return. An estate generally needs one if it earns income or receives amounts after death, like investment income or an employer death benefit.
When are the returns due?
| Date of death | Final return and payment due |
|---|---|
| 1 January to 31 October | 30 April of the following year |
| 1 November to 31 December | Six months after the death, on the same calendar day |
| Self-employed person or spouse, death 1 January to 15 December | Filing 15 June of the following year, payment still 30 April |
| Self-employed person or spouse, death 16 to 31 December | Six months after the death |
If you owe and pay late, the CRA charges compound daily interest from the day after the due date. A T3 return is due 90 days after the estate’s tax year end.
For example, if a parent died on 12 March, the final return is due 30 April of the next year. If they died on 20 November, it’s due 20 May. The dates are on the CRA’s filing and payment due dates page for returns of someone who died, and they decide how much time you have to gather slips, so check yours first.
How much probate does an estate pay?
Probate isn’t a CRA matter at all, which surprises people. It’s a provincial charge for the court’s grant. In Ontario it’s called the estate administration tax: nothing on the first $50,000, then $15 for every $1,000 or part above that. On a $600,000 estate, $550,000 is taxed, so the bill is $8,250.
That figure only counts assets that pass through the estate. Jointly owned assets and accounts with a named beneficiary generally sit outside it. Our probate fee and estate administration tax calculator lets you try other provinces and values.
Why does the final return run high?
Because the CRA counts increases in the value of property and investments up to the date of death. That can mean a large capital gain in a single year. The capital gains tax calculator does the math on a property sale, at half the gain as a taxable amount. We couldn’t find the 2026 inclusion rate on a CRA page, so treat that half as an assumption.
For the rest of the return, the income tax calculator shows what a normal year’s income would cost in your province.
What does an executor do first?
Tell the CRA about the death, gather the person’s slips and last year’s notice of assessment, and find out whether any earlier returns are missing. Then work out which returns are needed and when. Don’t hand out the money until you know what the estate owes, because once it’s gone you can’t pay the tax from it.
Picture a daughter in Kelowna who becomes executor for her dad. She expects a simple job, then finds he never filed his last two years. That’s three returns instead of one, and an accountant who knows the order of operations saves her weeks. Ask the accountant how to confirm what’s owing before the final payout.
What about an estate tax accountant near me?
We can’t point you to a named firm, and we won’t claim one is best. Distance matters less than it used to, because returns are filed online. What matters is whether the person has handled a death before and will explain each step.
Ask these before you sign:
- Have you filed final and T3 returns before, and how many a year?
- Will you also handle the optional returns, if they save tax?
- Is the fee fixed, or billed by the hour?
- Who talks to the CRA if it writes to the estate?
- Do you work with the lawyer who is handling the will?
Check a CPA’s standing with the provincial CPA body. We couldn’t confirm any fee levels from an official source, so get two written quotes.
Mistakes that slow an estate down
Distributing everything too early is the classic one. The estate may still owe tax, and the money is gone. Missing the date is next, since late filing brings a penalty of 5% of the balance owing plus 1% for each full month, up to 12 months. Last, forgetting the prior-year returns the person left unfiled, which the representative has to file too.
Sources, and how we checked them
Return types and due dates come from the Canada Revenue Agency‘s pages on doing taxes for someone who died and on T3 trust returns. The Ontario tax comes from the Government of Ontario’s estate administration tax page, updated in 2026. Estimates use this site’s calculators.
Frequently asked questions
Does Canada have an estate tax?
We found no separate federal estate tax on the CRA pages. The tax shows up on the deceased person's final return, and provinces charge probate fees.
When is the final return due?
If death was between 1 January and 31 October, it's due 30 April of the next year. For 1 November to 31 December, it's due six months after the death.
What is the T3 return?
It's the trust return an estate generally files if it earns income or receives amounts after death. It's due 90 days after the estate's tax year end.
How much is Ontario probate on $600,000?
$8,250. Ontario charges $15 per $1,000 or part above the first $50,000 of estate assets.
How do I find an estate accountant nearby?
Start with your provincial CPA body to confirm standing, then compare written quotes. We can't confirm any firm or fee.
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