Probate Fees vs Income Tax
Probate fees by province compared with income tax at death, a worked Ontario example and planning moves sorted by what they save.
The short version
- Probate fees and income tax at death are two different bills. Probate is a provincial fee on assets that pass through the will; income tax is CRA's tax on the final return.
- Probate is usually the smaller of the two: Ontario charges $15 per $1,000 above the first $50,000 (1.5%), Alberta caps it at $525, and Manitoba charges nothing.
- Income tax on a cottage gain or a RRIF can be ten times the probate bill on the same estate.
- Naming beneficiaries on RRSPs, RRIFs, TFSAs and insurance avoids probate on those assets, and naming a spouse can also defer the income tax.
- Avoiding probate by adding a child to a title can trigger income tax now, expose the asset to the child's creditors or divorce, and start a family fight. Saving 1.5% isn't worth that.
Probate Fees vs Income Tax
Probate fees get all the attention because they have a scary name and show up on a lawyer's invoice. Income tax at death gets less attention, because it shows up later, on a CRA notice, and is usually much bigger. People routinely do odd things to avoid a 1.5% probate fee and trigger a 25% income tax bill in the process. Here's how the two compare, and which planning moves help with which.
Probate Fees by Province
| Province | Fee on assets passing through the will | On a $1,000,000 estate |
|---|---|---|
| Ontario (estate administration tax) | $0 on the first $50,000; $15 per $1,000 above | $14,250 |
| British Columbia | $0 on the first $25,000; $6 per $1,000 from $25,000 to $50,000; $14 per $1,000 above; plus a court filing fee | about $13,450 plus a filing fee |
| Alberta | Tiered fee, capped at $525 | $525 |
| Saskatchewan | $7 per $1,000 | $7,000 |
| Manitoba | None (eliminated in November 2020) | $0 |
| Nova Scotia | Tiered; about 1.7% above $100,000 | about $16,000 |
Other provinces and territories have their own scales; check with the province's court. Quebec is not covered.
Which costs more for your estate?
List the assets, who will inherit, and your province. The assistant estimates both the probate fee and the income tax on the final return, and shows which planning steps reduce each.
The Same Estate, Both Bills
Ontario. Home $900,000 (principal residence); RRIF $300,000 left to the estate; non-registered investments $200,000 with $80,000 of gains; no spouse.
| Probate (estate administration tax) | Income tax on the final return | |
|---|---|---|
| Home | $13,500 (if it passes through the will) | $0, principal residence |
| RRIF, estate as beneficiary | $4,500 | Full $300,000 is income |
| Investments | $3,000 | Half of $80,000 is taxable |
| Total, roughly | $20,250 | well over $130,000 |
Name an adult child as RRIF beneficiary and the $4,500 of probate disappears. The income tax doesn't: the estate still pays it, and the child receives the RRIF. That's fine if everyone knows it's coming and the will balances it, and a nasty surprise if not. Final return details are on death and the final tax return.
Planning Moves, Sorted
| Move | Probate | Income tax | Watch out for |
|---|---|---|---|
| Name a spouse beneficiary on RRSP or RRIF | Avoided | Deferred until the spouse's death | Very little |
| Name a child beneficiary on RRSP or RRIF | Avoided | Still taxed on the final return | Who pays the tax: the estate, not the child |
| TFSA with a successor holder or beneficiary | Avoided | None to the date of death | Name the spouse as successor holder where possible |
| Joint ownership with a spouse | Avoided | Spousal rollover anyway | Fine for most couples |
| Adding an adult child to a title | May be avoided | Can trigger a deemed sale of the share given now | Creditors, divorce, loss of control, and court fights over whether it was really a gift |
| Secondary will (Ontario and some other provinces) | Avoided on private company shares and similar assets | No effect | Needs a lawyer to draft properly |
| Alter ego or joint partner trust (65 and older) | Avoided | Gains taxed at death of the person or survivor | Setup and yearly T3 costs |
| Life insurance to cover the tax | Avoided if a beneficiary is named | Payout is tax-free | Premium cost |
Rules of Thumb
- Fix the income tax first; it's usually the bigger number.
- Name beneficiaries on every registered account and policy, and keep them current; for TFSAs, see TFSA.
- Don't put a child on title just to save probate without legal and tax advice.
- Consider charitable gifts by will, which can offset tax on the final return; see charitable donations.
- Make the will match the beneficiary designations, so the person who gets the RRIF and the people who pay its tax are treated fairly.
The full picture is on estate taxes in Canada, and the beneficiary's side on inheritance tax in Canada. Cottages get their own page: cottage capital gains.
Probate vs Income Tax Questions
How much are probate fees in Ontario?
Ontario’s estate administration tax is $0 on the first $50,000 of the estate’s value and $15 per $1,000 (1.5%) above that.
Is probate the same as estate tax?
No. Probate fees are a provincial charge on assets passing through the will. Income tax at death is federal and provincial income tax on the final return, mostly from capital gains and RRSPs or RRIFs.
Does naming a beneficiary on an RRSP avoid tax?
It avoids probate on the RRSP. It avoids income tax only if the beneficiary is a spouse or common-law partner, or in some cases a financially dependent child or grandchild.
Should I add my child to the title of my home to avoid probate?
Not without advice. It can trigger tax on a share of the property, expose it to the child’s creditors or divorce, and lead to disputes over whether it was a gift. For a principal residence the tax part is often fine, but the other risks remain.
Which province has the lowest probate fees?
Manitoba has no probate fees, and Alberta caps them at $525.
Estimate both for your own estate in the estate tax calculator.
Sources: Ontario, Estate Administration Tax; WealthNorth, Probate fees by province (2026); CRA, Final return due dates. Checked October 2026. Provincial probate figures other than Ontario's come from a secondary source and should be confirmed with the province; BC, Saskatchewan and Nova Scotia figures are rounded. The example tax is approximate, using 2026 Ontario rates. Not legal advice; estate planning needs a lawyer.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.