Tax at death and probate fees in Canada
Canada has no inheritance tax, but at death a final tax return is filed as if you had sold everything, and most provinces charge a probate fee on what passes through your will. For many retirees the largest single tax bill of their life is on that final return.
What is taxed on the final return
- RRSP and RRIF: the whole balance is added to income in the year of death, unless it passes to a spouse or common-law partner (or, in some cases, a financially dependent child or grandchild).
- Investments and other capital property: treated as sold at market value. Half of the gain is taxable. Shares of a private company, including a holding company, are included.
- Your home: usually tax-free under the principal residence exemption. A cottage or rental property is taxed on its gain.
- TFSA: no tax on the value at death. Growth after death is taxable to the beneficiary, unless a spouse takes the account over as successor holder.
- Pensions, CPP and OAS received up to the date of death are taxed as usual.
Property left to a spouse or common-law partner (or a spousal trust) rolls over at its cost, so the tax is deferred until the second death. That is why the biggest bill usually comes on the second death of a couple.
Example. A widow dies with a $400,000 RRIF, a non-registered account worth $300,000 that cost $200,000, and her home. The final return includes $400,000 of RRIF income plus $50,000 (half of the $100,000 gain); the home is exempt. With $450,000 of income in one year, much of it is taxed at the top rate, which is about 48% to 55% depending on the province.
The final return is due April 30 of the following year for a death from January to October, and six months after the date of death for a death in November or December. Any balance owing is due the same day.
Probate fees by province and territory (2026)
Probate confirms the will and the executor's authority. The fee is charged on the assets that pass through the will, not on accounts with a named beneficiary or property held jointly with a right of survivorship. Estimated fees:
| Province or territory | How the fee works | $500,000 estate | $1,000,000 estate |
|---|---|---|---|
| Alberta | Flat fee by value band, at most $525 | $525 | $525 |
| British Columbia | 0.6% from $25,000 to $50,000, 1.4% above, plus a $200 filing fee | $6,650 | $13,650 |
| Saskatchewan | 0.7% of the whole value, plus a $200 filing fee | $3,700 | $7,200 |
| Manitoba | None (abolished in 2020) | $0 | $0 |
| Ontario | 1.5% above $50,000 (estate administration tax) | $6,750 | $14,250 |
| Quebec | No value-based fee; a small flat fee to verify a will that was not made before a notary | about $240 | about $240 |
| New Brunswick | Since 12 June 2026: $200 up to $20,000, 0.5% to $100,000, 1.5% above | $6,600 | $14,100 |
| Nova Scotia | Flat fee by band up to $100,000, then 1.695% above | $7,783 | $16,258 |
| Prince Edward Island | Flat fee by band up to $100,000, then 0.4% above | $2,000 | $4,000 |
| Newfoundland and Labrador | $60, plus 0.6% above $1,000 | $3,054 | $6,054 |
| Yukon | $140 flat; none up to $25,000 | $140 | $140 |
| Northwest Territories | Flat fee by value band, at most $435 | $435 | $435 |
| Nunavut | Flat fee by value band, at most $425 | $425 | $425 |
Fees are usually rounded up per $1,000, and what counts toward the value differs between provinces (for example, whether a mortgage is deducted). Probate is often a smaller cost than the income tax on the final return.
Ways to reduce tax and probate at death
- Name beneficiaries on your RRSP, RRIF, TFSA and life insurance (outside Quebec, where the rules differ). The money goes straight to them, outside probate.
- Name your spouse as RRSP/RRIF beneficiary and TFSA successor holder to defer the tax until the second death.
- Draw the RRIF down during your life at lower rates instead of leaving a large balance taxed at the top rate in one year. See Which accounts to draw from first.
- Give to charity in your will. In the year of death and the year before, the donation credit can be claimed on up to 100% of net income. Gifts of publicly listed shares also avoid the tax on their gain.
- Be careful with joint ownership. Adding a child to an account or the title of your home avoids probate but can expose it to their creditors or a divorce, and can have tax effects. Get advice first.
- Private company shares. In Ontario a second will for shares of a private company can keep them out of probate, and post-mortem planning can avoid taxing a holding company's growth twice. See How to pay yourself from a holding company.
Try it with your numbers. Both free planners estimate the tax on your final return and the probate fee for your province at the end of your plan, and rank withdrawal orders by what is left for your heirs after tax.
Open the Personal / Couple PlannerHolding Company PlannerGeneral information for planning and education, not financial, tax or legal advice.