There is no Saskatchewan inheritance tax. Neither the province nor the federal government charges beneficiaries a tax on money, property, or investments they receive from someone who has died. Canada repealed its federal estate tax in 1972, and Saskatchewan has never enacted a provincial equivalent. What does get paid comes out of the deceased person’s estate before you see your share: a final income tax return filed on the deceased’s behalf, and a Saskatchewan probate fee of $7 for every $1,000 of estate value.
The practical result for a beneficiary is simple. You do not file anything with the Canada Revenue Agency because you inherited something, and you do not owe a percentage based on your relationship to the deceased or the size of your gift. The executor handles the tax and probate costs from estate funds, and you receive what remains.
How the Estate Is Taxed Instead
Federal law treats a person who dies as having sold every piece of capital property they owned at fair market value immediately before death. The Income Tax Act calls this a deemed disposition.1Department of Justice Canada. Income Tax Act – Section 70 No actual sale takes place, but the tax system calculates the gain or loss as if one had. Shares bought for $50,000 that were worth $200,000 on the date of death generate a $150,000 capital gain the estate must report.
A principal residence is generally exempt from this deemed sale. Even when the full gain qualifies for the exemption, the executor must still designate the property as a principal residence on the final return using Schedule 3 and Form T1255.2Canada Revenue Agency. Taxable capital gains on property, investments, and belongings Missing that step can cost the estate the exemption entirely.
Capital Gains Inclusion Rate for 2026
Not all of a capital gain is taxable. Canada has historically taxed only half of any capital gain, so $100,000 in gains added $50,000 to taxable income. Starting January 1, 2026, the federal government increased the inclusion rate to two-thirds for individual capital gains above $250,000 in a single year, and for all capital gains realized by corporations and most trusts.3Department of Finance Canada. Government of Canada announces deferral in implementation of change to capital gains inclusion rate The first $250,000 of an individual’s annual gains still uses the one-half rate.
A deemed disposition at death can easily produce gains well above $250,000, especially when the deceased held investment real estate, a business, or a large stock portfolio. Whether the higher rate applies to any portion of the estate’s gain is worth reviewing with a tax professional before the final return is filed.
Spousal Rollover
Property passing to a surviving spouse or common-law partner generally escapes the deemed disposition rules. The asset transfers at the deceased’s original cost, and the capital gain is deferred until the surviving partner sells the asset or dies.2Canada Revenue Agency. Taxable capital gains on property, investments, and belongings The tax is postponed rather than erased. The surviving partner inherits the original cost base, and the full accumulated gain is realized later.
Registered Accounts Are Where the Real Tax Hits
RRSPs and RRIFs often generate the largest single tax bill an estate faces. Unlike capital property, where only the gain is taxable, the entire fair market value of an RRSP or RRIF is included as income on the deceased’s final return.4Department of Justice Canada. Income Tax Act – Section 146 A $400,000 RRSP does not trigger a capital gains calculation. It adds $400,000 of straight income to the return, which can push the estate into the top federal and provincial brackets.
The main exception is a spousal rollover. When the deceased named their spouse or common-law partner as the sole beneficiary of the RRSP, the full value can transfer to the surviving spouse’s own RRSP or RRIF with no immediate tax.5Canada Revenue Agency. Death of an RRSP Annuitant A financially dependent child or grandchild may qualify for a rollover in some circumstances. Everyone else receiving RRSP or RRIF money receives funds that have already been taxed on the final return.
If the value of a RRIF falls between the date of death and the date the funds are distributed, the executor can request a reassessment to deduct that decrease on the final return. If the value rises, the growth is taxable to whoever receives it.6Canada Revenue Agency. Death of a RRIF annuitant
TFSAs
Tax-Free Savings Accounts are more forgiving. A designated beneficiary receives the TFSA balance up to the fair market value at the date of death tax-free. Only investment growth accumulating after the date of death and before distribution becomes taxable income for the beneficiary.7Canada Revenue Agency. If you are a designated beneficiary of a TFSA When the deceased named their spouse as a successor holder rather than a beneficiary, the TFSA simply continues in the surviving spouse’s name with no tax consequences at all.
Saskatchewan Probate Fees
Saskatchewan charges a probate fee, sometimes called an estate administration tax, of $7 for every $1,000 of estate value or any portion of that amount. The levy applies to applications for probate and to most types of administration under The Administration of Estates Act.8Saskatchewan Law Courts. Probating an Estate An estate worth $500,000 owes $3,500. An estate worth $1,000,000 owes $7,000. A Local Registrar fee of $200 applies to standard applications.9Government of Saskatchewan. When the Deceased does not have a Last Will and Testament
The fee is calculated on the total value of assets that pass through probate, as listed on the Statement of Property (Form 16-14). Real estate, bank accounts, investments, and vehicles held solely in the deceased’s name all count. Assets with a named beneficiary, such as life insurance proceeds or an RRSP with a designated beneficiary, bypass probate and stay out of the calculation. Property held in joint tenancy with right of survivorship also passes outside probate. This is one reason beneficiary designations and joint ownership are used as estate planning tools: they reduce what flows through probate and lower the fee.
Small Estates
Saskatchewan offers a simplified procedure for smaller estates. If the total value is $25,000 or less and no real property is involved, full probate is generally not required, and the Local Registrar fee drops to $100.10Government of Saskatchewan. Estates Not Exceeding $25000 Real property in the estate means full probate will be needed for any land transactions with Information Services Corporation, regardless of total value.
Executor Deadlines and the Clearance Certificate
The executor files a final T1 income tax return for the period from January 1 of the year of death through the date of death. For deaths between January 1 and October 31, the filing deadline is April 30 of the following year. For deaths between November 1 and December 31, the deadline is six months after the date of death.11Canada Revenue Agency. Filing and payment due dates Any balance owing is due on the same date.
Missing the deadline when tax is owed triggers a late-filing penalty of 5% of the balance, plus 1% for each full month the return is late, up to 12 months. Repeat offenders face 10% plus 2% per month for up to 20 months.12Canada Revenue Agency. Interest and penalties on late taxes – Personal income tax Those penalties reduce what beneficiaries receive.
Before distributing any assets, the executor should apply to CRA for a clearance certificate confirming that all income tax, GST/HST, interest, and penalties have been paid.13Canada Revenue Agency. Apply for a clearance certificate Under section 159 of the Income Tax Act, an executor who distributes assets without one becomes personally liable for any unpaid tax, up to the value of what was distributed.14Department of Justice Canada. Income Tax Act – Section 159 That liability comes out of the executor’s own pocket. The clearance certificate shifts the risk onto the recipients of the distributed assets instead.