What Is the Estate Administration Tax?
Learn what the Estate Administration Tax is, how it is calculated in Ontario, and what it means for your executor and estate plan
In Ontario, most estates must pay a fee to the provincial government before probate is granted. This fee is officially known as the Estate Administration Tax (EAT). It is sometimes informally called “probate tax” or “probate fees,” but it is a specific, structured charge applied based on the value of the estate.
Understanding this tax is essential for anyone planning their Will or serving as an executor. It affects how much of your estate is available for your beneficiaries and what your executor must do before administering your assets.
What the Estate Administration Tax Covers
The Estate Administration Tax is a fee paid to the Ontario government for processing the probate application. It is based on the total value of the deceased’s assets that are subject to probate—meaning, typically, the assets in their name alone without a named beneficiary.
| Taxed Assets | Examples |
|---|---|
| Bank and investment accounts | In the deceased’s name alone |
| Real estate in Ontario (net of mortgage) | Not jointly owned, and located in Ontario |
| Vehicles, valuable personal property | Artwork, collections, and other significant holdings |
| Business interests or private company shares | Included in the estate if not held in trust |
Tip: The EAT does not apply to assets that pass outside the estate, such as RRSPs with a named beneficiary or jointly held property with right of survivorship.
Learn how the Estate Administration Tax is calculated
As of 2025, the tax is calculated using the following formula:
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No tax on the first $50,000 of the estate
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$15 for every $1,000 over $50,000
Here’s how it looks in practice:
| Estate Value | Estimated Tax |
|---|---|
| $40,000 | $0 |
| $100,000 | $750 |
| $500,000 | $6,750 |
| $1,000,000 | $13,500 |
The tax must be paid when the executor applies for a Certificate of Appointment of Estate Trustee (Ontario’s term for probate).
Important: If the executor underreports the value of the estate, the Ministry of Finance may reassess the return and impose penalties or interest.
How This Tax Affects Your Estate Plan and Probate Process
While the Estate Administration Tax is a relatively small percentage, it can still add thousands of dollars in cost—and it must be paid upfront before the estate can be administered.
This has several practical implications:
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Executors may need to access other funds or borrow to cover the tax before assets are released
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Beneficiaries may receive less than expected if the tax reduces available funds
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Probate planning strategies (such as trusts, joint ownership, and named beneficiaries) can help reduce the estate’s taxable value
How Optimize Helps Reduce the Impact of Estate Taxes
At Optimize, we help you look ahead—not just at how your estate will be distributed, but how efficiently it can be settled. We work with you to structure your estate in a way that may reduce the Estate Administration Tax and make probate smoother.
This includes:
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Identifying probate-exposed assets
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Reviewing account and property registrations
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Exploring options for trusts or direct beneficiary designations
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Preparing executors with clear estimates of expected costs
We help ensure that your plan is not only sound, but also cost-effective and easy to carry out.
Why Understanding This Tax Is Key to Effective Estate Planning
The Estate Administration Tax is not avoidable for many estates—but it is manageable. Knowing how it works, what triggers it, and how to plan for it helps your executor take action quickly and confidently.
It also protects your beneficiaries from delays and surprises, and ensures that more of your estate goes where you intend.
Plan with clarity. Structure with care. And turn your Will into a roadmap that works—legally, financially, and with as little friction as possible.