Probate fees vs estate taxes in Canada: why probate is rarely your biggest cost
Avoiding probate is often the first goal families mention. The income tax at death is usually far larger.
Probate gets a lot of attention, and trimming it is worthwhile. But it is a small fee on the value that passes through the will. The bigger question is how much income tax your family will pay on your final return. This page shows probate fees in the seven provinces where Pankaj is licensed, and how they compare with the tax.
In short
Probate fees run from $0 in Manitoba and a $525 maximum in Alberta to about 1.5% in Ontario and 1.7% in Nova Scotia above the first tiers. On a $1,000,000 estate that is $0 to about $16,258. Income tax at death works differently: half of capital gains and the full RRSP or RRIF are added to income and can be taxed at over 50%. Name beneficiaries to cut probate, but plan for the tax first.
Probate fees by province (2026)
For the seven provinces where Pankaj is licensed. Each row links to the official fee source; fees are on the value that passes through the estate.
| Province | How the fee is calculated | On $500,000 | On $1,000,000 | Source |
|---|---|---|---|---|
| Ontario | Estate Administration Tax: $0 on the first $50,000, then $15 per $1,000 (1.5%) | $6,750 | $14,250 | Official |
| Alberta | Flat fee by net value: $35 up to $10,000; $135 to $25,000; $275 to $125,000; $400 to $250,000; $525 above | $525 | $525 | Official |
| British Columbia | $0 up to $25,000; $6 per $1,000 from $25,000 to $50,000; $14 per $1,000 above $50,000 | $6,450 | $13,450 | Official |
| Manitoba | Probate charge eliminated on November 6, 2020 | $0 | $0 | Official |
| Saskatchewan | $7 per $1,000 (0.7%) of value passing through the estate | $3,500 | $7,000 | Official |
| New Brunswick | From June 12, 2026: $200 up to $20,000; $200 + $5 per $1,000 to $100,000; $600 + $15 per $1,000 above $100,000 | $6,600 | $14,100 | Official |
| Nova Scotia | $85.60 up to $10,000; $215.20 to $25,000; $358.15 to $50,000; $1,002.65 to $100,000; then $16.95 per $1,000 | $7,782.65 | $16,257.65 | Official |
The hidden cost: deemed disposition
Section 70(5) of the Income Tax Act treats most of your capital property as sold at fair market value immediately before death. Your family may have no plan to sell the cottage or the portfolio. The CRA taxes the estate as if you did.
- Capital gains are triggered. A family cottage, rental property or non-registered portfolio that has grown in value creates a gain. Half of it is added to income.
- Registered plans become income. An RRSP or RRIF is added to income in full in the year of death unless it rolls over to a spouse or another qualifying survivor.
A beneficiary designation moves an RRSP past probate, but the tax on it still falls on the estate. That is why a plan that only "avoids probate" can still leave a large bill.
Probate vs income tax in one line
Ontario probate tops out at about 1.5% of the estate above $50,000. A fully taxed RRSP or a large capital gain can be taxed at over 50%. Spending months on a complex trust to save 1.5%, while half the retirement savings go to the CRA, gets the priorities backwards.
Probate fee vs tax at death calculator
See both bills side by side for your province.
Rough estimate. Real tax uses graduated brackets; your accountant should confirm.
Ways to reduce probate (and what they don't fix)
Name beneficiaries
Life insurance, RRSPs, RRIFs and TFSAs with a named beneficiary usually pay out directly. In Saskatchewan the courts list these as not subject to probate fees. Check every plan after a marriage, divorce or death in the family.
Use segregated funds
Segregated funds are insurance contracts, so a named beneficiary is paid without the will. They also offer maturity and death guarantees. See segregated fund TFSAs.
Fund the tax with insurance
None of the above reduces income tax at death. A permanent or joint last-to-die policy pays a tax-free sum to a named beneficiary when the tax is due. See estate tax and life insurance.
Joint ownership with right of survivorship also skips probate, but adding a child to a title can expose the asset to that child's creditors or a family breakdown. Get legal advice first.
Good estate planning is about tax
Good planning looks at the whole picture: probate, income tax at death, and who receives what. It aims to reduce the total your family pays, not only the administrative fees. You should not need a law degree to understand it, so Pankaj reads the rules and explains them in plain English.
To build a tax-efficient plan for 2026, contact Pankaj Bhatia. With offices in Mississauga and Cambridge and clients across the seven provinces where he is licensed, he works alongside your accountant and lawyer. Call 647-640-2222 or WhatsApp.
Probate and estate tax questions
How much is probate in Ontario?
Ontario charges Estate Administration Tax of $15 per $1,000 (1.5%) on the value of the estate above $50,000; the first $50,000 is free.
On a $500,000 estate that is $6,750. Even when no tax is owing, the estate trustee must file an Estate Information Return within 180 days after the certificate is issued.
Which assets avoid probate?
Life insurance, RRSPs, RRIFs, TFSAs and segregated funds with a named beneficiary usually pass outside the estate, as do assets owned jointly with right of survivorship.
They skip probate, but not income tax. An RRSP left to a child still has its full value taxed on the parent's final return.
Is probate bigger than the income tax at death?
Usually not. Tax on an RRSP or RRIF and on capital gains at death is often many times larger than probate, which is why planning should cover both.
For example, a $500,000 RRIF taxed at about 50% costs roughly $250,000 in tax. Ontario probate on a $500,000 estate is $6,750.
Does Manitoba still charge probate fees?
No. Manitoba eliminated the probate charge on November 6, 2020.
Income tax at death still applies in Manitoba exactly as in other provinces.
Did New Brunswick probate fees change in 2026?
Yes. Since June 12, 2026, estates over $100,000 pay $600 plus $15 per $1,000 above $100,000.
Estates up to $20,000 pay $200, and estates from $20,000 to $100,000 pay $200 plus $5 per $1,000 above $20,000. A $1,000,000 estate now pays $14,100.
Should I add my child to my house title to avoid probate?
Be careful. Joint ownership can expose the property to your child's creditors or divorce, and may create tax issues.
Speak with an estates lawyer before changing title. Naming beneficiaries on insurance and registered plans is usually a simpler first step.
How do segregated funds help with probate?
A segregated fund is an insurance contract, so it pays a named beneficiary directly instead of going through the will.
See segregated fund TFSAs for guarantees and creditor protection.
How do families pay the tax at death?
Many use a permanent or joint last-to-die life insurance policy, which pays a tax-free sum to a named beneficiary when the tax is due.
Written by Pankaj Bhatia, CHS, PFA
Insure In Canada Inc. · Licensed in Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, New Brunswick and Nova Scotia
Pankaj starts estate reviews by listing every account and its named beneficiary. Missing or outdated designations are the most common gap he finds.
Call 647-640-2222 · WhatsApp · info@pankajbhatia.ca · About Pankaj
Sources and related pages
- Ontario: Estate Administration Tax
- Alberta: court fees (surrogate fees)
- British Columbia: Probate Fee Act
- Manitoba Law Library: probate charges eliminated (Nov 2020)
- Saskatchewan Law Courts: probate fees
- New Brunswick: An Act to Amend the Probate Court Act, SNB 2026, c.12
- New Brunswick: Probate Court fees
- Courts of Nova Scotia: probate taxes
- Income Tax Act, section 70
General education only, not tax or legal advice. Fees and tax rules change; speak with your accountant or lawyer about your situation.