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The final tax return after death is due April 30 of the next year if the person died between January 1 and October 31. So for a death in 2026, that’s April 30, 2027. If the death fell on November 1 or later, you get six months from the date of death instead. Tax owing follows the same dates, and the estate can’t lean on the later filing date that business owners get.
Who files it, and what goes on it?
The legal representative does. That’s usually the executor named in the will, or an administrator the court appoints when there’s no will. They file a final T1 return covering income from January 1 up to the date of death, plus any gain deemed to arise on property the person owned. The usual credits and deductions apply too.
Credits are worth chasing. They shrink the bill, and you don’t have to guess which ones apply, because the tax credits calculator shows how the common ones change the result, and the CRA guide has the exact rules for each claim.
What are the due dates?
The date of death sets the clock, and so does a business in the family, whether the person or their spouse ran it. Here they are side by side.
| Situation | Filing due date | Payment due date |
|---|---|---|
| Death from January 1 to October 31 | April 30 of the next year | April 30 of the next year |
| Death from November 1 to December 31 | Six months after the date of death | Six months after the date of death |
| Person or spouse ran a business, death January 1 to December 15 | June 15 of the next year | April 30 of the next year |
| Person or spouse ran a business, death December 16 to 31 | Six months after the date of death | Six months after the date of death |
Late with tax to pay? Then you’re looking at a penalty of 5% of what’s owed, plus 1% for every full month, up to 12 months. Interest also builds daily on unpaid tax. A rough estimate paid on time beats a perfect figure paid late.
What income lands on the final return?
Salary, pension and interest up to the date of death go on it. So does the full market value of an RRSP or RRIF at death, and that’s the item that surprises families most. The exception is a plan that passes to a surviving spouse or common-law partner under the rollover rules. Those rules ask that all the property go to the partner, that it move straight into the partner’s registered plan, and that it be paid out by the end of the year after the death.
Capital property is treated as sold just before death at market value. Half of the profit (the 2026 inclusion rate) is the taxable gain, and it goes on Schedule 3. A home designated as the principal residence can be exempt, and property left to a spouse can roll over without a gain on this return. To see the extra tax on a given gain, use the capital gains tax calculator.
Money earned but unpaid at death, like final wages or vacation pay, can go on a separate return for rights or things. It has its own tax steps, and they can lower the total bill.
What does a large RRIF cost in Ontario?
Say an Ontario resident earned $45,000 of employment income before death. On that alone, the income tax calculator gives $5,243.01 of federal and Ontario tax.
Now add a $60,000 RRIF, fully taxable because nothing rolls over. Total income becomes $105,000 and income tax jumps to $22,194.55. The RRIF alone adds $16,951.54, about 28% of its value.
Then add a $40,000 capital gain on a cottage with no exemption. Half of it, $20,000, is taxable, the total rises to $29,773.05, and the gain adds $7,578.50 of tax. Those figures come from the income tax calculator and leave out credits that depend on the person’s situation.
Where do estates slip up?
- Waiting until the estate is settled. The tax deadline runs from the date of death, not from probate.
- Missing the RRIF or RRSP slip. A T4RIF is issued in the name of the person who died.
- Putting later income on the final return. Interest earned on estate accounts after death goes on a T3 trust return.
- Assuming a small income means no tax. A registered plan or a second property can create a large bill.
Treat the figures above as estimates, because refundable credits, benefits and some claims aren’t modelled. An Ontario estate may also owe a separate probate charge, which the estate administration tax calculator can check. And if the person had tax withheld at work, the tax refund calculator shows whether a refund is likely.
Where the numbers come from
Filing dates, penalties and the death rules come from the Canada Revenue Agency pages on preparing returns for someone who died, read in September 2026. Brackets and the 50% capital gains inclusion rate for 2026 come from the federal and Ontario data behind our calculators. This site has no link with any government body. For a complex estate, a lawyer or accountant should look it over.
Frequently asked questions
When is the final return due?
If the death fell between January 1 and October 31, it's due April 30 of the next year. For a death from November 1 to December 31, it's due six months after the date of death.
Who has to file it?
The legal representative, usually the executor or an appointed administrator, files a T1 return for the person who died.
Is an RRSP or RRIF taxed at death?
Yes. Its full market value is income on the final return, unless it passes to a spouse or common-law partner under the rollover conditions.
What if the person ran a business?
Filing moves to June 15 of the next year for deaths up to December 15. Any tax owing is still due April 30.
What's the penalty for filing late?
With a balance owing, it's 5% of the balance plus 1% for each full month late, up to 12 months, and daily interest on unpaid tax.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.