Estate Administration Tax

Learn about the Estate Administration Tax including who pays the tax and at what rate.

About the Estate Administration Tax

The Estate Administration Tax is charged on the value of the estate of a deceased person if an estate certificate is applied for and issued.

The tax is paid as a deposit when applying for an estate certificate from the Superior Court of Justice. Once the estate certificate is issued, that deposit becomes the Estate Administration Tax.

If an estate certificate is not applied for or is not issued, no tax is owed. If you’ve applied for an estate certificate, but no estate certificate is issued, your deposit will be refunded.

Applying for a Certificate of Appointment of Estate Trustee or for a Small Estate Certificate (both known as estate certificate)

When someone dies, you may need an estate certificate to collect and manage their estate, depending on the assets involved. You may want to contact a lawyer for legal advice about whether you need to apply.

You can file an application for an estate certificate (previously called “letters probate” or “letters of administration”) at a local Superior Court of Justice. If the deceased had no permanent residence in Ontario, you must file the application at the Superior Court of Justice in the county or district where the deceased's property is located.

You do not need to pay the Estate Administration Tax if any of the following certificates are issued:

• Certificate of Appointment of Succeeding Estate Trustee with a Will
• Certificate of Appointment of Succeeding Estate Trustee with a Will Limited to the Assets Referred to in the Will
• Certificate of Appointment of Succeeding Estate Trustee without a Will
• Certificate of Appointment of Estate Trustee During Litigation

Determining the value of an estate

The tax is based on the value of the estate, which is the value of all assets owned by the deceased at the time of death.

Assets to include

• real estate in Ontario, less encumbrances (such as a mortgage, collateral mortgage or lien) on the real estate.
  Notes:
  • Use the appraised value at the date of death even if the property sells for less or more shortly after the death.
  • The ‘first dealings’ exemption for Land Titles Conversion Qualified properties does not affect Estate Administration Tax. You must include the value of the property when calculating the total value of the estate and pay the applicable tax.
• bank accounts (includes foreign banks)
• investments (for example, stocks, bonds, trust units, options, mutual funds, Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), part of the Registered Education Savings Plan (RESP) that the deceased subscriber was entitled to, Registered Disability Savings Plan (RDSP) for which the deceased was a beneficiary)
• vehicles and vessels (for example, cars, trucks, boats, all-terrain vehicles (ATVs), motorcycles, trailers, etc., situated in or outside Ontario)
• all property of the deceased that was held in another person's name
• all other property, wherever situated, including:
  • goods
  • intangible property
  • business interests
  • insurance, if proceeds are left to the estate

Assets not to include

• assets that the deceased had before death but not at the time of death, such as insurance that will be paid to a named beneficiary
• assets where there is joint ownership that automatically become assets of the other owner(s)
• real estate outside of Ontario
• Canada Pension Plan (CPP) Death Benefit Death Benefit
• Registered Pension Plans (RPPs), RRSP, RRIF and TFSA with a beneficiary designation or beneficiary declaration
• RDSPs to which the deceased subscribed to but was not a beneficiary

Ineligible expenses, debts and payments

The following expenses, debts and payments cannot be deducted to reduce the total value of the estate:

• funeral expenses
• lawyer’s fee
• loans and interest payments
• debt owed on a vehicle
• credit card debts
• real estate commissions
• unregistered loans
• line of credit

An encumbrance (such as a mortgage, collateral mortgage or lien) can be deducted from the value of real property, for example your land or real estate, if the property is included in your estate assets.

Exceptions

When the value of the estate is based on assets limited to a will

If the deceased had multiple wills and the court issues a Certificate of Appointment of Estate Trustee with a Will Limited to the Assets Referred to in the Will, only assets included in that specific will can be included in the value of the estate.

When the value of the estate is based only on assets in Ontario

If the court issues a Confirmation by Resealing of Appointment of Estate Trustee, a Certificate of Ancillary Appointment of an Estate Trustee with a Will or a Certificate of Appointment of Foreign Estate Trustee’s Nominee as Estate Trustee without a Will, only assets located in Ontario can be used in the calculation of the Estate Administration Tax.

Assets located on a Reserve

Certain property situated on a Reserve may be exempt from taxation.

For questions about whether First Nations people are exempt from the Estate Administration Tax, please contact us.

Determining the value of assets

Estate representatives must be able to demonstrate the values of the assets through supporting documents, such as statements, an opinion of value from an appraiser, etc.

Values should be based on the fair market value of the assets as at the time of death.

Depending on the type of asset, valuation (determining the value) may be complicated. A professional appraiser with expertise in a particular area may assist in recommending a value.

Calculating the tax

If you apply for an estate certificate on or after January 1, 2020:

• You do not need to pay Estate Administration Tax if the value of the estate is $50,000 or less. However, you must still file an Estate Information Return within 180 calendar days after the estate certificate has been issued.
• For estates valued over $50,000, the Estate Administration Tax will be calculated as $15 for every $1,000 (or part thereof) of the value of the estate.

The estate value is rounded up to the nearest thousand. So, for an estate valued at $239,250, the tax rate would be calculated on $240,000.

The Estate Administration Tax is calculated on the total value of the estate. For example, for an estate valued at $240,000, the tax would be calculated as follows:

• $0 per $1,000 for the first $50,000 of the estate
• $15 per $1,000 for the remaining $190,000 of the estate
  • $240,000 - $50,000 = $190,000
  • $190,000 ÷ $1,000 = $190
  • $190 X $15 = $2,850
• The total of $2,850 payable to the Minister of Finance.

To calculate the amount of Estate Administration Tax the estate owes, use the tax calculator.

If you applied for an estate certificate before January 1, 2020, the tax rates are:

• $5 for each $1,000, or part thereof, of the first $50,000 of the value of the estate
• $15 for each $1,000, or part thereof, of the value of the estate exceeding $50,000

You do not need to pay Estate Administration Tax if the value of the estate is $1,000 or less.

Paying the tax

The tax is paid as a deposit when the estate representative applies for an estate certificate with the Superior Court of Justice. The tax is paid by the estate, not by the estate representative.

Cheques must be payable to the Minister of Finance.

Additional Estate Administration Tax

If the estate owes additional Estate Administration Tax when you file the Estate Information Return, you may pay the amount owing to the Superior Court of Justice where the estate certificate was issued.

When you submit your payment, it must include:

• an affidavit attesting to the revised value of the estate at the time of death
• an explanation of why the estate value has changed

You can also pay the additional tax to the Ministry of Finance. If you pay the ministry:

• we will send you a confirmation that the payment was received
• you can give this confirmation to the court as proof of payment
• you must submit the confirmation with your affidavit, as required by court procedures

Filing an Estate Information Return

You must file an Estate Information Return with the Ministry of Finance within 180 calendar days after the estate certificate is issued, even if the calculated value of the estate is $0.

If the due date falls on a weekend or a holiday, the due date will be extended to the next business day.

You do not need to file an Estate Information Return if the court has issued any of the following:

• Certificate of Appointment of Succeeding Estate Trustee with a Will
• Certificate of Appointment of Succeeding Estate Trustee with a Will Limited to the Assets Referred to in the Will
• Certificate of Appointment of Succeeding Estate Trustee without a Will
• Certificate of Appointment of Estate Trustee During Litigation

How to file the return

You can file the return:

• online
• by mail
• by courier
• in person
• by fax

A detailed guide is available to help you complete the return. 

File online

Filing online is the fastest and easiest way to submit your return.

Step 1: Visit the Ministry of Finance’s online services webpage.

Step 2: Select Estate Information Return located under File your Estate Information Return.

Step 3: Complete the online return. You can select Save Draft to save your return and finish later. You will receive an Estate Information Return Access Code by email. You need your email address and access code to resume a saved return.

Step 4: Submit the return. The estate representative will receive an email from the ministry acknowledging we received the return by the next business day.

Benefits of filing online

• No login, password or signatures are required.
• Access the webpage from any device including your phone, tablet or computer.
• Save a copy of your return and complete it later.
• Upload supporting documents.
• Get immediate confirmation that we received your information.
• Print a copy of your return for your records.

If you cannot file online, you can submit your return

• by mail to: Ministry of Finance, 33 King Street West, PO Box 625, Oshawa, ON
  L1H 8H9
• by fax to: 1-866-888-3850
• in person at Ministry of Finance, 33 King Street West, Oshawa or at certain ServiceOntario locations.

File using third-party software

Law offices may choose to use third-party software to file an Estate Information Return on behalf of their client.

Third-party software providers are not operated or endorsed by the Ministry of Finance.

If you use a third-party service provider:

• contact the provider directly for help with using their service
• ensure the return is complete and submitted on time

Note: This is a new service and may not yet be available by your third-party service provider. We will provide information soon to interested service providers on how they can learn more about this option.

Submit additional documents

You can use the ministry’s online services webpage to upload supporting documents to your return.

To use the service, you must contact us by phone to request an access code.

This service allows you to upload documents directly to your file instead of sending them by email or mail.

Record keeping

Records and books of account in support of all entries on the Estate Information Return must be kept at the estate representative’s principal place of business or residence for four years.

Filing an amended return

You can file an amended return:

• online
• by mail
• by courier
• in person
• by fax

To file an amended return:

• complete an Estate Information Return
• select “Is this an Amended Return?”  
• explain why you are amending the return

In certain circumstances listed in the guide, you can send a letter with the corrected information and an explanation, instead of filing an amended return.

You may need to file an amended Estate Information Return in the following situations:

If you applied using an estimated estate value

If you applied for an estate certificate using an estimated value, you must later provide the actual estate value.

• You must file an Estate Information Return  within 180 calendar days of the date the estate certificate was issued (using the estimate).

You must file an amended return within 60 calendar days of the actual value being shared with the court to fulfil the undertaking (a sworn promise to the court to return with the complete information).

If information is incorrect or incomplete

You must file an amended return if you discover incorrect or incomplete information within four years of the estate certificate being issued.

You must submit the amended return within 60 days of becoming aware that the information is incomplete or inaccurate.

If you discover new assets

If you discover new assets after the original return was filed, you must:

• report the new asset and its fair market value (as of the date of death)
• file an amended return  within 60 calendar days after the statement is delivered to the court

Refunds

Deposits

A refund of the deposit paid at the time an estate certificate application was submitted needs to be requested at the Superior Court of Justice where the application was submitted. This will only be granted if the certificate of appointment has not yet been issued by the court office.

Tax

Once a Certificate of Appointment of Estate Trustee is issued, the deposit becomes the Estate Administration Tax.

Requests for a refund must be made to the Ministry of Finance, not at a courthouse.

You may request a refund if you overpaid Estate Administration Tax and:

• you filed an Estate Information Return within four years of the estate certificate being issued, and
• your refund request is received within:
• 12 years after the date the estate certificate was issued, or
• 2 years of the date a Notice of Assessment was issued

You can request a refund by filing or amending your Estate Information Return.

Penalties, assessment and appeals

Penalties

Estate representatives who do not file an Estate Information Return as required, or who make false or misleading statements on the return, may be fined at least $1,000 and up to twice the tax payable by the estate, imprisoned up to two years, or both.

Assessments

The Ministry of Finance may assess or reassess an estate for the amount of Estate Administration Tax owing by the estate (the tax payable) within four years after the day the tax was due.

The tax is due on the day the estate certificate is issued.

The Ministry of Finance may also, at any time, assess or reassess an estate's tax payable upon establishing that any person has either:

• not filed the required information with the Ministry of Finance by the deadline
• made a misrepresentation through neglect, carelessness or willful default, or committed fraud in supplying or omitting information about the estate

Notice of Objection

If you disagree with the assessment or reassessment, you may file a Notice of Objection with the Ministry of Finance. This will result in an independent, informal review of the assessment.

A Notice of Objection must be filed within 180 days from the day the Notice of Assessment was issued.

A Notice of Objection may be completed online. Visit ontario.ca/taxappeals 

Contact us

If you have questions about the Estate Administration Tax, contact the ministry:

• Toll-free: 1-866-ONT-TAXS (668-8297)
• TTY: 1-800-263-7776
• Mail: Ministry of Finance, 33 King Street West, PO Box 625, Oshawa, ON, L1H 8H9

Customer service hours of operation: Monday to Friday, 8:30 am – 5:00 pm.