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Estate tax and probate calculator for Ontario

Canada has no inheritance tax, but when the last spouse dies the estate pays income tax as if everything had been sold: the full RRSP or RRIF balance becomes income, and half of every capital gain is taxed. In Ontario, the estate also pays estate administration tax (probate) of for every ,000 above ,000 that passes through the will. Estimate what your estate would owe below.

What would your estate owe?

Example figures are filled in. Replace them with your own.

Taxed at deathRRSP and RRIF balance$Gain on non-registered investments$Value now minus what you paid.Gain on a cottage or rental property$A principal residence is usually exempt.Gain on private company shares$Lifetime capital gains exemption you can claim$About .25 million on qualifying small business shares, if they qualify.Tax rate in the year of death%53.53% is Ontario's top rate for 2026.

ProbateValue passing through the will$Assets in your name alone. Joint and beneficiary-named accounts usually pass outside it.

Set aside to pay itLife insurance set aside for it$Cash in the estate you would use$

Your estimate

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General education only, not advice. Coverage depends on underwriting. WealthPillar is paid by insurer commission.

How this estate tax calculator works

RRSP and RRIF. Unless it rolls over to a spouse or another qualifying beneficiary, the whole balance is added to income on the final return.
Capital gains. At death you are treated as selling your capital property at fair market value. Half of the gain is taxed. A principal residence is usually exempt, but a cottage or rental property is not. Qualifying small business shares may be sheltered by the lifetime capital gains exemption, about .25 million per person.
Tax rate. A large RRSP or gain usually puts the final return in the top bracket, which is 53.53% in Ontario for 2026. Use a lower rate if the amounts are small.
Probate. Ontario charges nothing on the first ,000 and per ,000, or part of ,000, above that. Only assets that pass through the will count. Joint accounts and accounts with a named beneficiary usually pass outside it.
What is set aside. Life insurance meant to pay these bills, and cash in the estate that can be used without selling assets.

Why estates often need cash, not just value

The tax is due whether or not the estate has the cash. A family cottage, a rental building or shares in a private company can leave a large bill and little money to pay it, which can force a sale. Permanent life insurance is one way families plan for that bill so the assets can pass on. Freezing the value of a business, gifts during life and the choice of beneficiaries are others, and they need your accountant and lawyer. The estate and wealth transfer page explains how insurance fits in.

What this estimate leaves out

The first death. Most assets can roll to a surviving spouse with no tax. This calculator shows the bill at the second death.
Bracket detail. The calculator applies one rate to everything. The real return uses the brackets, credits and the income you earned in the year of death.
Other provinces and countries. Probate and tax differ outside Ontario, and US assets can trigger US estate tax.
Corporate assets. Investments held in a private company can be taxed twice at death without planning. That is a question for your accountant.

Common questions

Is there an inheritance tax in Canada?

No. Canada taxes the person who died, not the people who inherit. The tax is paid by the estate on the final return before the assets are handed out.

How much is probate in Ontario?

Ontario's estate administration tax is nothing on the first ,000 of the estate's value and for every ,000, or part of ,000, above that. A ,000,000 estate pays ,250.

Is my RRSP taxed when I die?

If it rolls over to your spouse or common-law partner, or in some cases a financially dependent child or grandchild, tax can be deferred. Otherwise the full balance is added to your income in the year of death and taxed on your final return.

How can life insurance help with estate taxes?

A permanent policy pays a known amount at death, which the estate can use for the tax and probate bill instead of selling assets. Whether it makes sense depends on your age, health, the size of the bill and the cost of the policy.

See also the life insurance needs calculator and all of our calculators.

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General education only. Not individualized insurance, financial, tax or legal advice. Figures use 2026 rates and are estimates. All coverage is subject to underwriting and the terms of the policy. WealthPillar is paid by insurer commission.