Canada estate tax calculator

Canada has no estate or inheritance tax — but that does not mean death is tax-free. At death you are treated as having sold everything you own, and the resulting capital gain is taxed on your final return. This is how it works in 2026.

Reflects 2026 Canadian rules · 50% inclusion · provincial probate varies · an estimate, not advice.

No inheritance tax — a deemed disposition instead

There is no tax on the heir for receiving an inheritance in Canada. Instead, immediately before death you are deemed to have disposed of all your capital property at fair market value. Any accrued capital gain is realised and taxed on the deceased's final T1 return.

The 2026 figures

• 50% inclusion rate: half of each capital gain is added to income (the proposed 66.67% rate was cancelled in March 2025).
• That taxable half is taxed at the deceased's marginal rate — combined federal + provincial top rates run roughly 44.5%–54.8% (about 53.5% in Ontario/BC), so the effective tax on a large gain is around 26–27%.
• Registered accounts (RRSP/RRIF) are generally fully included in income at death unless rolled to a qualifying spouse or dependant.

The reliefs that matter

• Spousal rollover. Assets left to a spouse or a qualifying spousal trust transfer at cost — deferring the gain until the survivor's death or sale.
• Principal-residence exemption. The gain on a qualifying principal residence is generally exempt, so the family home usually escapes the deemed-disposition tax.
• Lifetime capital gains exemption of about $1,275,000 can shelter gains on qualifying small-business shares or farm/fishing property.

Provincial probate (estate administration tax)

On top of the income tax, most provinces charge a probate or estate administration fee on the value of the estate — from negligible in some provinces to roughly 1.5% of estate value in Ontario. It is separate from the capital-gains tax and varies widely, so the province matters.

See your own numbers

HeirCalc applies the deemed disposition, the 50% inclusion rate, your province's top marginal rate and the principal-residence exemption to your exact assets — and shows the statutory reason behind every figure. It runs entirely in your browser; nothing is saved or sent anywhere.

This guide is general information for 2026, not legal, tax, or financial advice. The outcome turns on precise facts — residence, domicile, the exact assets, reliefs and elections available, and how title is held — that can change the result. Confirm your situation with a qualified professional. HeirCalc is an estimator by Krometis Analytics.