When someone dies in Canada, their legal representative (usually the executor named in the will) must file one or more tax returns to settle the person’s tax obligations, and is personally liable for paying any tax owed before distributing the estate. This page covers which returns to file, when they’re due, the order of the work and how the clearance certificate protects the executor. For filing an ordinary return, see the guide to filing a tax return in Canada.
Types of returns
| Return | What it covers | Required? |
|---|---|---|
| Final return (T1) | Income from January 1 to the date of death | Mandatory |
| Rights or things return (T1) | Income earned but not received at death | Optional (may save tax) |
| Deceased partner or proprietor return (T1) | Business income from a fiscal period that ends after death | Optional |
| Testamentary trust beneficiary return (T1) | Trust income from a trust year that ends after death | Optional |
| T3 Trust Return | Income earned by the estate after death | If the estate earns income |
| Prior-year returns | Any unfiled returns from previous years | If outstanding |
Each optional return gets its own basic personal amount and its own run through the graduated tax brackets, which is why filing one can lower the total tax.
Filing deadlines
| Date of death | Final return deadline | Balance due date |
|---|---|---|
| January 1 to October 31 | April 30 of the next year | April 30 |
| November 1 to December 31 | 6 months after death | 6 months after death |
| Self-employed, death before December 16 | June 15 of the next year | April 30 |
| Self-employed, death from December 16 to December 31 | 6 months after death | 6 months after death |
The deadlines for everyone else are on the tax deadlines page.
Executor timeline
| Timing | Action | Form or filing |
|---|---|---|
| Right away | Notify the CRA of the death | Phone (CRA contact numbers) and letter |
| Right away | Notify financial institutions, Service Canada (CPP/OAS/GIS) and the employer | Death certificate |
| Early | Apply for the CPP death benefit ($2,500, up to $5,000 with the top-up) | ISP1200 |
| Early | Apply for probate, if the assets require it | Provincial court |
| By the final return deadline | File the final T1 | T1 |
| By each return’s deadline | File any optional returns that lower the tax | T1 |
| 90 days after the estate’s tax year end | File the T3 return, if the estate earns income | T3 |
| After all returns are assessed and paid | Request a clearance certificate | TX19 |
| After the certificate arrives | Distribute the remaining assets to beneficiaries |
Other estate tasks run alongside the tax work: getting several copies of the death certificate (banks, the CRA and the land registry each need one), locating the will, listing every asset and debt, and publishing a notice to creditors where the province requires it. Whether the estate needs probate, and what it costs, depends on the province; the probate fees by province page has the schedules.
Step by step
Step 1: Gather the documents
- Death certificate
- Social Insurance Number (SIN) of the deceased
- Will and executor appointment (or court-appointed administrator)
- All T-slips (T4, T5, T3, T4A, etc.)
- Records of property owned at death
Step 2: Notify the CRA
Tell the CRA about the death, send the death certificate and proof that you are the legal representative, and ask for the deceased’s prior tax records if you need them.
Step 3: File the final return
- Report all income from January 1 to the date of death
- Claim all eligible credits and deductions
- Report the deemed disposition of capital property
Step 4: Report the deemed disposition
At death, the deceased is treated as having sold most capital property at fair market value, and the full value of an RRSP or RRIF is generally income on the final return unless it passes to a surviving spouse or a qualifying dependant. A principal residence can be sheltered by the principal residence exemption, and a TFSA passes tax-free to a successor holder. How the deemed disposition at death works for each type of asset, and what the tax bill looks like, is covered on the inheritance tax page.
Step 5: Request a clearance certificate
File Form TX19 after all returns are filed and the tax is paid. The section below covers what the CRA confirms and why it matters.
Tax-saving strategies
| Strategy | How it helps |
|---|---|
| Spousal rollover | Transfer RRSP/RRIF to surviving spouse tax-free |
| Rights or things return | Split income across two returns (lower effective rate) |
| Charitable donations | Claim up to 100% of net income in year of death |
| Capital gains reserve | Spread gains over up to 10 years in some cases |
Common mistakes
| Mistake | Consequence |
|---|---|
| Not filing on time | Interest and penalties accumulate |
| Distributing the estate without a clearance certificate | Executor personally liable for taxes |
| Missing the spousal rollover | Unnecessary tax on RRSP/RRIF |
| Forgetting the deemed disposition | CRA reassessment and penalties |
The rights or things return: when does it help?
The optional “rights or things” return moves certain income that was earned but unpaid at the time of death onto a separate return, which can save significant tax because each return has its own set of personal credits and low-rate tax brackets.
Income eligible for the rights or things return:
| Income type | Notes |
|---|---|
| Unpaid employment income (final paycheque, vacation pay) | Wages earned but not yet paid at death |
| Matured but uncashed bond interest | Interest accumulated up to date of death |
| Uncleared EI or CPP payments | Amounts due before death but not yet received |
| Declared but unpaid dividends | Dividends declared to deceased but unpaid |
| Net income stabilization account (NISA) withdrawals | Farm-specific |
Tax savings example: if the final paycheque is $10,000, filing it on a separate rights or things return means those earnings are taxed at the lowest federal rate on their own return (after applying a fresh BPA and personal credits) rather than being piled on top of the deceased’s other income on the final return.
Deadline for the rights or things return: the later of 90 days after the date of the Notice of Assessment of the final return, or 18 months after the date of death.
Filing the T3 estate trust return
The estate is a separate legal taxpayer. After death, the estate earns income (interest, dividends, rental income) until assets are fully distributed to beneficiaries. This income goes on a T3 Trust Income Tax and Information Return, not on the deceased’s final T1.
| T3 filing rules | Details |
|---|---|
| Who files | Executor or administrator of the estate |
| Filing deadline | 90 days after the estate’s tax year end |
| Tax year end | Executor can choose any date within 12 months of death |
| Minimum income threshold | File if estate income exceeds $500 |
| When T3 ends | When estate is wound up and all assets distributed |
Testamentary trust: if the will establishes an ongoing trust for beneficiaries, the T3 continues for as long as the trust exists. Graduated rate estates (GRE) have special rules allowing them to use progressive tax rates for up to 36 months, which is one reason complex estates often use professional help (see when to hire an accountant).
Scenario guide: who files and what they file
| Scenario | What is filed |
|---|---|
| Survived by spouse (RRSP/RRIF rolled over) | Final T1 + T3 if estate earns income; RRSP/RRIF NOT on final return |
| Single with no surviving spouse (RRSP) | Full RRSP/RRIF balance is income on final T1 |
| Rental property, no spouse | Deemed disposition at fair market value: capital gain on final T1 |
| Charitable bequest in will | Donation claim up to 100% of net income on final T1 (or carry back to prior year) |
| Estate earns rental income while being settled | T3 required for estate income |
Clearance certificate: protecting the executor
The clearance certificate (Form TX19) protects the executor from personal liability. Executors generally hold back estate assets until it is in hand.
What CRA confirms: all federal tax returns have been filed and any tax owed has been paid (or acceptable security provided).
Process:
- File all returns (final T1, any optional returns, all T3s)
- Receive Notices of Assessment on all returns
- Pay all assessed amounts
- Submit Form TX19 with the death certificate, the will, a summary of estate assets, beneficiaries and distributions
- CRA issues the clearance certificate (typically 2 to 4 months)
If an executor distributes assets without a clearance certificate and CRA later assesses additional tax, the executor can be held personally liable for the unpaid amount up to the amount distributed.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 22, 2026. How we check facts.
- Canada Revenue Agency: Filing and payment due dates - Prepare tax returns for someone who died
- Canada Revenue Agency: Due dates and payment dates - Personal income tax
- Government of Canada: CPP: Death Benefit