Estate tax · tax on death · probate
Inheritance Tax in Canada (2026)
Canada doesn't have an inheritance tax, but death triggers income tax on the final return and provincial probate fees. Estimate what the estate will owe.
Official 2026 rates, verified October 9, 2026
Short answer: heirs don't pay tax on what they inherit. The estate pays income tax on the deceased's final return, mostly on RRSPs, RRIFs and capital gains, and probate fees where they apply.
Estimate the tax on a final return
How taxes work when someone dies
Deemed disposition. At death, a person is treated as having sold all their capital property at fair market value. Half of any capital gain is taxable on the final return. The main exceptions are property left to a spouse or common-law partner, which rolls over at cost, and a principal residence.
RRSPs and RRIFs. The full value is added to income on the final return, unless it passes to a surviving spouse or partner or, in some cases, a financially dependent child or grandchild. This is often the biggest tax bill.
TFSAs. The balance at death is tax-free. Growth after death is taxable unless a spouse takes over as successor holder.
Probate fees. Most provinces charge a fee, based on the estate's value, to confirm the executor's authority. It ranges from nothing in Manitoba and Quebec to about 1.5% in Ontario and 1.4% in BC.
Probate fees by province
| Province | Probate fee |
|---|---|
| Ontario | $0 on the first $50,000; $15 per $1,000 above (1.5%) |
| British Columbia | $0 to $25,000; $6 per $1,000 from $25,000 to $50,000; $14 per $1,000 above; plus a $200 filing fee |
| Alberta | Flat fee from $35 to a maximum of $525 |
| Saskatchewan | $7 per $1,000 (0.7%) |
| Manitoba | No probate fee since November 2020 |
| Quebec | No probate tax; notarial wills need no probate. Other wills need court verification for a small fee. |
| Nova Scotia | $1,002.65 for estates up to $100,000, plus $16.95 per $1,000 above; smaller estates pay less |
| Newfoundland and Labrador | $60 plus $0.60 per $100 over $1,000 |
| New Brunswick | Set by the Probate Court fee schedule; check the court for current fees |
| Prince Edward Island | Tiered fee up to $400 for estates of $100,000, plus 0.4% above |
Calculate probate: probate fee calculator.
Frequently asked questions
Is there an inheritance tax in Canada?
No. Canada has no inheritance tax or estate tax, and people who inherit don't pay tax on what they receive. Instead, the person who died is taxed on their final return, and the estate pays that tax before anything is distributed.
What taxes are due when someone dies in Canada?
Income tax on the final return, including the full value of RRSPs and RRIFs and capital gains on everything treated as sold at death (the deemed disposition), plus provincial probate fees on assets that pass through the will.
Do I pay tax on money I inherit?
No. An inheritance is not taxable income. You only pay tax on income or gains the inherited assets earn after you receive them. Your cost base for inherited property is its value at the date of death.
How can an estate avoid taxes at death?
Assets left to a spouse or common-law partner (or a spousal trust) roll over tax-free until the survivor dies. A principal residence is usually exempt. RRSPs and RRIFs can also pass tax-deferred to a financially dependent child or grandchild in some cases.
What about US estate tax?
Canadians who own US property or US shares may be subject to US estate tax if their worldwide estate is large enough. The Canada–US tax treaty provides relief; get professional advice.
When is the final tax return due?
April 30 of the following year for deaths from January to October, or six months after death for deaths in November or December. Executors should get a clearance certificate from the CRA before distributing the estate.
Related calculators
This is general information, not legal or tax advice. Estates are complex; executors should speak with an estate lawyer or accountant.
All rates and amounts on this page are taken from official government sources, including the Canada Revenue Agency, Revenu Québec and provincial and territorial finance ministries. Last verified October 9, 2026.