Is there a Probate Tax in Canada?

Is There Any Estate Tax, Probate Tax, or Inheritance Tax in Canada?

A lot of people believe there’s no estate tax in Canada—and honestly, it’s easy to see why. You’ll hear plenty of YouTubers confidently say, “Canada doesn’t have estate taxes!” But Canada’s tax system isn’t quite that simple. We’re a big country with ten provinces and three territories, and each one has its own rules.

So instead of trying to cover the whole country at once, let’s zoom in on Ontario, where most people live and work.

1. Ontario: Yes, There Is a Tax on Estates

In Ontario, when someone passes away and their family applies to manage or inherit their estate, they have to pay something called the Estate Administration Tax (E.A.T.). In plain language:

Yes—Ontario does charge a tax related to inheriting a deceased person's property.

And the province is very clear that this is a tax, not just a fee. Here’s how the Government of Ontario explains it:

“The Estate Administration Tax is charged on the value of the estate… The tax is paid as a deposit when applying for an estate certificate… Once the estate certificate is issued, that deposit becomes the Estate Administration Tax.”

So despite what some online personalities claim, Ontario does have a form of estate tax.

2. What’s the Difference Between a Fee and a Tax?

A fee is pretty straightforward: it’s money you pay for a specific, optional service—like a permit or application. The amount must actually reflect the cost of that service.

A tax, on the other hand, isn’t tied to service costs. It’s simply a mandatory payment set by the government.

3. Why E.A.T. Is Clearly a Tax

In a probate application, the court isn’t really providing a “service” in the fee-based sense. Even if you argue that issuing the estate certificate is a service, the amount you pay has nothing to do with the actual cost of issuing it.

E.A.T. is based solely on the value of the deceased’s estate.

And the process? It’s hardly optional. If someone passes away with even a modest amount—say, $10,000 sitting in a bank account—the bank will almost always require an estate certificate before releasing the funds. So you don’t really get to choose whether to pay the tax.

4. What About the Rest of Canada?

Here’s where the naming gets confusing.

Outside Ontario, every other province and territory uses the term “probate fee.”

But don’t let the friendly name fool you.

These charges still behave much more like taxes because they’re usually calculated based on the value of the estate, not the cost of a government service. Some places charge a percentage, others charge a flat fee, and some have a cap. But the idea is generally the same.

There is one real exception: Manitoba scrapped its probate fees (estate tax) entirely in 2020.

So the popular claim that “Canada has no probate tax”? Not true. Most provinces and territories still charge one—it’s just that Ontario is the only one that openly calls it a tax.