Published 12 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
Ontario’s Estate Administration Tax is the thing people still call probate fees. It is simpler than its reputation, and the part that saves families the most money is one line about mortgages that most explanations leave out.
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For estate certificate applications made on or after January 1, 2020:
- Nothing on the first $50,000 of estate value
- $15 per $1,000 — that is 1.5% — on everything above $50,000
The estate value is rounded up to the nearest $1,000 before the calculation.
So on a $700,000 estate: the first $50,000 is exempt, and the remaining $650,000 attracts $9,750.
What goes into the estate value
The value covers all assets the deceased owned at death, including:
- Ontario real estate
- bank accounts
- investments
- vehicles and vessels
- property held in someone else’s name
- other property, such as business interests
Two significant exclusions:
- Assets that pass directly to a named beneficiary or joint owner are generally excluded. This is why registered accounts with named beneficiaries, insurance proceeds, and jointly held property with a right of survivorship typically sit outside the calculation.
- Real estate outside Ontario is generally excluded.
The mortgage rule that matters
Here is the provision worth real money: the value of Ontario real estate can be reduced by encumbrances — a mortgage, a collateral mortgage, or a lien.
Other debts cannot be deducted. Credit card balances, lines of credit and funeral expenses do not reduce the estate value for this tax.
Consider two estates that are economically identical:
| Estate A | Estate B | |
|---|---|---|
| House | $1,000,000 | $1,000,000 |
| Debt | $400,000 mortgage on the house | $400,000 line of credit |
| Value for the tax | $600,000 | $1,000,000 |
| Tax payable | $8,250 | $14,250 |
Same net worth. Six thousand dollars apart. Whether the debt is secured against the Ontario real estate is what makes the difference.
This is not advice to restructure anyone’s borrowing, and it should never be the main reason to choose one kind of debt over another. But it is a real feature of the rules, and when an estate includes both a property and unsecured debt, it is worth knowing before the application is prepared.
Which certificate
- Estates valued up to $150,000 can apply for a Small Estate Certificate.
- Above $150,000, the application is for a Certificate of Appointment of Estate Trustee.
Applications are usually processed within 15 business days, though longer if documents are missing or a judge must decide an issue.
The deadline people miss
An Estate Information Return must be filed within 180 calendar days after the estate certificate is issued. It is required even if the calculated value is $0 and no tax is payable.
Put the date in a calendar on the day the certificate arrives. The estate trustee is personally responsible for this filing, and “I did not know” is not a defence that helps anyone.
What this means if you are selling the house
Three practical points:
- Get a date-of-death valuation from a qualified appraiser. The tax is charged on value at the date of death, not on what the property eventually sells for. If the market moves between death and sale, those are two different numbers and you need the first one documented.
- Confirm the mortgage balance as at the date of death in writing from the lender, since that is the figure that reduces the real estate value.
- Do not guess the value to save time. Understating it creates a liability that follows the estate trustee personally; overstating it means the estate pays tax it did not owe.
The short version
1.5% above $50,000. Ontario real estate counts, and a mortgage against it comes off. Unsecured debt does not. Jointly held property with survivorship and assets with named beneficiaries generally sit outside. Small Estate Certificate up to $150,000. And the Estate Information Return is due 180 days after the certificate, no matter what the number is.
General information, not legal or tax advice. Rates, thresholds and filing requirements can change — confirm current figures with Ontario and get professional advice on a specific estate.
Sources
- Ontario — Estate Administration Tax
- Ontario — Apply for probate of an estate
- Ontario — Administering estates
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