Skip to main content

Featured

The Fed Just Hiked Rates. Here's What It Means for Your Canadian Mortgage.

  The U.S. Federal Reserve raised its benchmark rate 25 basis points yesterday — the first hike in three years. The Bank of Canada hasn't moved. That gap is now the biggest story in Canadian personal finance. MoneySavings.ca  |  September 17, 2026  |  Canadian Money Brief Yesterday afternoon, the Federal Open Market Committee voted 12-0 to raise the U.S. federal funds rate by a quarter point, pushing it to a target range of 3.75%–4.00%. It's the Fed's first rate hike since July 2023, and Chair Kevin Warsh made clear it almost certainly won't be the last. The Bank of Canada, by contrast, has held its overnight rate at 2.25% through seven straight meetings. It doesn't decide again until October 28. For Canadians with a mortgage, a renewal coming up, or a home equity line of credit, this matters more than it might look at first glance. 3.75–4.00% New U.S. Fed Rate 2.25% Bank of Canada Rate 1.625% Rate Gap (vs. 1.375% yesterday) ~71.5¢ Loonie (post-hike low) What th...
Post a Comment
Read more

article

Labels

Inheritance Tax in Canada: Myths and Facts


Inheritance tax is a tax levied on the estate of a deceased person. In Canada, there is no inheritance tax. Money received from an inheritance, like most gifts and life insurance benefits, is not considered taxable income by the CRA, so you don’t have to pay taxes on that money or report it as income on your tax return. However, this doesn’t mean that an inheritance is immune from Canadian tax laws. The deceased person’s legal representative or estate may have to pay taxes on the estate’s income before the money is released to you.

When a person dies, their legal representative, the executor, has to file a deceased tax return to the CRA. The due date of this return depends on the date the person died. Any taxes owing from this tax return are taken from the estate before it can be settled (dispersed). Once the executor has settled the estate, they must ask the CRA for a Clearance Certificate which confirms all income taxes have been paid or that the CRA has accepted security for the payment. As a legal representative, it is important to get this clearance certificate before distributing any property. If you do not get a certificate, you can be held personally liable for any amount(s) the deceased owes.

If you invest your inheritance money, and earn income (such as interest or dividends) on that investment, you will be taxed on the income earned. The same rules apply if you sell a capital asset and it increases in value from the time you inherited it.

It is important to note that while there is no inheritance tax in Canada, there is an estate tax of sorts. After a person dies, the CRA makes sure that taxes have been paid on any income they earned up to the date of death. If there is a tax balance owing, the executor of the estate is responsible to file a deceased tax return.

In summary, there is no inheritance tax in Canada. However, the estate may have to pay taxes on the estate’s income before the money is released to you. It is important to file a deceased tax return to the CRA and obtain a Clearance Certificate before distributing any property.

Labels:

Comments

Post a Comment