Updated Checked by the Tax-Services.ca editorial team How we check
Ontario has no inheritance tax, and neither does the federal government, so you don’t pay tax on money or property you receive from someone’s will. What does exist is the estate administration tax, which Ontario charges on the estate before it’s paid out: nothing on the first $50,000, then $15 for every $1,000 above that. On a $500,000 estate that’s $6,750.
What does the estate pay in Ontario?
The province’s rule applies to applications made on or after 1 January 2020. If the estate is worth $50,000 or less, there’s no tax. Above that, the tax is $15 for every $1,000, or part of $1,000, of the estate’s value.
You do not need to pay Estate Administration Tax if the value of the estate is $50,000 or less.
Estate Administration Tax, Government of Ontario, ontario.ca
| Estate value | Estate administration tax |
|---|---|
| $50,000 | $0 |
| $200,000 | $2,250 |
| $500,000 | $6,750 |
| $900,000 | $12,750 |
These figures come from our estate administration tax calculator. The executor pays it as a deposit when applying for an estate certificate from the Superior Court of Justice, and it’s the estate that bears the cost, so it comes out of what the heirs would otherwise receive.
To check the maths by hand, take the value above $50,000, divide by 1,000 and multiply by $15. For a $200,000 estate that’s $150,000, which is 150 thousands, times $15, or $2,250.
What counts toward the value of the estate?
Ontario real estate (less mortgages), bank accounts, investments and vehicles count. So do business interests, and registered plans like RRSPs or TFSAs that have no named beneficiary.
Some things stay out. Jointly owned property, insurance paid to a named beneficiary, real estate outside Ontario, the CPP death benefit and registered plans with a beneficiary designation are all excluded, per the province’s page. That list explains why two estates of the same size can pay very different amounts.
Picture two families. In one, a mother in Ottawa leaves a $400,000 house in her sole name and nothing else. In the other, a father in Sudbury holds a $400,000 house jointly with his spouse. The first estate pays $5,250 on $350,000 above the threshold. The second may pay nothing on that house, because it passes straight to the surviving owner.
Do heirs pay tax on what they inherit?
No. An inheritance isn’t income to the person receiving it, so it doesn’t go on your return. Where tax can come later is on what you do with it. If you inherit a rental property and sell it, the gain from the date you received it is yours to report. If you inherit a savings account and it earns interest, that interest is taxable to you from then on.
Is there any tax on the person who died?
Yes, and this is the part people confuse with an inheritance tax. When someone dies, the CRA treats them as having sold their capital property just before death, at fair market value. Any gain is reported on their final return, and the estate pays the tax, not you as an heir.
A few things soften it. Property that goes to a spouse or common-law partner resident in Canada can roll over at its original cost if it becomes locked in to them within 36 months of death. A principal residence may be exempt, but the CRA says you must still designate it on the final return with Schedule 3 and Form T1255.
To test a gain, use the capital gains tax calculator. It assumes 50% of a gain is taxable in 2026, a figure the CRA page we read doesn’t state, so confirm it when you file. As a rough example, a $100,000 gain on top of $40,000 of other income in Ontario lifts the tax on the final return from about $5,111 to about $18,462 on our numbers.
What about paperwork after probate?
Ontario also requires an Estate Information Return within 180 days after the estate certificate is issued, even if the calculated value is zero. Put the date in your calendar when the certificate arrives.
If you’re weighing what an inherited investment is worth after tax, the income tax calculator shows how added income changes a bill.
What do these numbers leave out?
Plenty. You won’t find how RRSPs and RRIFs are taxed at death, foreign property, trusts, or what happens when a will is contested. For those, a lawyer or accountant who handles estates is the right call, especially if the estate holds a business or property outside Ontario.
We also can’t tell you how long probate takes or what a lawyer charges, because we couldn’t confirm either on an official page.
Sources, and how we checked them
The rate, threshold, included assets and Estate Information Return rule come from the Government of Ontario’s estate administration tax page, which we re-read in October 2026. The deemed disposition, rollover and residence rules come from the Canada Revenue Agency‘s guidance for returns of someone who died. Examples use our own engine. This site has no link with either government.
Frequently asked questions
Do I pay tax when I receive an inheritance in Ontario?
Not as a beneficiary. The Ontario and federal governments don't charge an inheritance tax. Tax may still apply to the estate.
How much is the estate administration tax?
Nothing on estates of $50,000 or less, then $15 for every $1,000 or part of $1,000 above that, for applications on or after January 1, 2020.
Is a house passed to a spouse taxed?
Capital property passed to a spouse or common-law partner resident in Canada can roll over at its original cost, if it becomes locked in within 36 months of death.
Does the principal residence escape tax at death?
It may be exempt from capital gains, but the CRA says it must be designated on the final return with Schedule 3 and Form T1255.
How long do I have to file the Estate Information Return?
Within 180 calendar days after the estate certificate is issued, per the Government of Ontario.
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