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Estate & Probate Calculator

2025
Estate Details
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$

Fully taxable as income unless rolled to spouse

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$

Investment property (not principal residence)

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Stocks, investments, etc. (gain amount, not FMV)

Estate Tax Summary

Total Estate Tax & Fees

$270,846.78

Net Estate to Heirs

$1,229,153.22

Effective Rate

18.06%

Detailed Breakdown

Deemed Disposition Income

RRSP/RRIF (100% taxable)$300,000.00
Real Estate Gain ($400,000.00 at inclusion rate)$200,000.00
Other Capital Gains ($100,000.00 at inclusion rate)$50,000.00
Total Deemed Taxable Income$550,000.00

Tax on Deemed Income

Federal Income Tax$153,399.99
Provincial Tax (Ontario)$95,446.79
Total Deemed Disposition Tax$248,846.78
Probate Fees (Ontario)$22,000.00
Total Estate Tax & Fees$270,846.78
Net Estate to Heirs$1,229,153.22
Probate Fees by Province on $1,500,000.00
Quebec$65.00
Yukon$140.00
Alberta$525.00
Northwest Territories$4,495.00
Nunavut$4,495.00
Prince Edward Island$6,000.00
New Brunswick$7,500.00
Newfoundland & Labrador$9,054.00
Saskatchewan$10,437.00
Manitoba$10,500.00
British Columbia$20,450.00
Ontario$22,000.00
Nova Scotia$24,480.65
More Information
Frequently Asked Questions
Canada does not have a formal inheritance tax or estate tax. Instead, the deceased is deemed to have disposed of all their assets at fair market value immediately before death. This triggers a final income tax return where all unrealized capital gains, RRSP/RRIF balances, and other deferred income become taxable. In addition, most provinces charge probate fees (estate administration tax) based on the value of the estate. The combined effect can result in a significant tax burden on the estate.
Deemed disposition means the CRA treats the deceased as having sold all their assets at fair market value immediately before death. Any capital gains that were unrealized during the person's lifetime become taxable in the final tax return. RRSP and RRIF balances are fully included in income (unless rolled over to a surviving spouse). This can create a very large tax bill in the year of death. The estate (or the executor) is responsible for filing the final return and paying the taxes owed.
When assets are left to a surviving spouse (or common-law partner), most can be transferred at the adjusted cost base rather than fair market value. This defers the capital gain until the surviving spouse disposes of the asset or dies. RRSP/RRIF balances can be rolled into the spouse's RRSP or RRIF tax-free. The spousal rollover is one of the most important estate planning tools in Canada, allowing couples to defer potentially hundreds of thousands of dollars in tax.
Probate fees vary dramatically across Canada. Ontario is the most expensive at 1.5% of estate value above $50,000. British Columbia charges up to 1.4% on estate value above $50,000. Alberta has flat fees capped at $525 regardless of estate size. Quebec charges only $65 for non-notarized wills (notarized wills avoid probate entirely). Some provinces like Saskatchewan and Manitoba charge 0.7%. Estate planning strategies like joint ownership, beneficiary designations, and inter vivos trusts can help minimize probate fees.
Key strategies include: (1) Spousal rollover for assets left to a spouse. (2) Beneficiary designations on RRSP/RRIF/TFSA/insurance to bypass probate. (3) Joint ownership with right of survivorship. (4) Principal residence exemption for your home. (5) Charitable donations (receipt can offset tax on up to 100% of income in the year of death). (6) Life insurance to provide liquidity for tax payments. (7) Estate freeze to crystallize gains at current values. (8) Alter ego or joint partner trusts for individuals over 65.
Life insurance proceeds paid to a named beneficiary bypass the estate entirely and are not subject to probate fees. The proceeds are generally received tax-free by the beneficiary. This makes life insurance a powerful estate planning tool: it can provide immediate liquidity to pay the deemed disposition tax without the delay and cost of probate. If no beneficiary is named (or the estate is named), the proceeds become part of the estate and are subject to probate.
The principal residence exemption (PRE) can shelter the capital gain on the deceased's home from the deemed disposition tax. If the home was the principal residence for every year of ownership, the entire gain is exempt. The PRE is available on the final return even though the property wasn't actually sold. However, if the deceased owned multiple properties, the PRE can only be applied to one property per year. Any investment properties or vacation homes not covered by the PRE will trigger taxable capital gains.
The executor must file a final T1 tax return covering January 1 to the date of death. This includes all regular income plus deemed dispositions and RRSP/RRIF income. Optional returns may also be filed for rights or things (e.g., unpaid salary, uncashed dividends), income from a trust, and income from a business. Filing multiple returns can reduce the overall tax by taking advantage of multiple sets of personal tax credits and the graduated rate structure. The final return is due by April 30 of the following year, or 6 months after death if later.

CRA-Aligned: Uses 2025 federal/provincial income tax rates and probate fee schedules. This calculator does not account for spousal rollovers, principal residence exemptions, or charitable donations which can significantly reduce the tax burden. Estate planning is complex; consult a tax professional and estate lawyer for personalized advice.

Understanding Inheritance and Estate Tax in Canada

How estates are taxed when someone passes away in Canada

Does Canada have an inheritance tax?

No. Canada does not have an inheritance or estate tax in the traditional sense. Beneficiaries do not pay tax on money or property they inherit. However, the deceased person is deemed to have sold all their assets at fair market value on the date of death, which can trigger capital gains tax on the final tax return.

What is the deemed disposition on death?

When you die, the CRA treats you as having sold all your capital assets (investments, property, etc.) at their fair market value. Any unrealised capital gains become taxable on your final return. For example, if you owned shares bought for $50,000 that are worth $200,000 at death, the $150,000 gain is included on your final return at the applicable inclusion rate.

What about RRSPs and RRIFs at death?

The full value of your RRSP or RRIF is included as income on your final tax return, unless it is transferred to your spouse, common-law partner, or financially dependent child or grandchild. On a $500,000 RRSP, this could result in over $200,000 in tax on the final return. Naming your spouse as the RRSP beneficiary avoids this immediate tax.

Are there exemptions for the family home?

Yes. The principal residence exemption applies on death. If the home was the deceased's principal residence for every year owned, the entire gain is tax-free. This is often the largest asset in an estate, so the exemption can save hundreds of thousands of dollars in tax. The executor must report the disposition on the final return even if the gain is fully exempt.

What about transfers to a surviving spouse?

Assets can generally be transferred to a surviving spouse or common-law partner on a tax-deferred basis — called a spousal rollover. The assets transfer at their original cost, and the capital gains tax is deferred until the surviving spouse sells the assets or dies. This includes the family home, investments, RRSPs, and other property.

What are probate fees?

Probate fees (called estate administration tax in Ontario) are provincial fees charged to validate a will. Rates vary by province. Ontario charges 0.5% on the first $50,000 and 1.5% on the balance. British Columbia charges 0.6% on amounts over $50,000 up to $1.4%. Alberta has a flat maximum of $525. Quebec does not charge probate fees for notarial wills.

How can you reduce the tax on your estate?

Common strategies include naming your spouse as the beneficiary of RRSPs and RRIFs, making charitable donations in your will (up to 100% of net income on the final return), using a TFSA (which passes to beneficiaries tax-free), gifting assets during your lifetime, and purchasing life insurance to cover expected tax liabilities. An estate plan prepared with professional advice can save significant tax.

CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

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