No. Canada has no inheritance tax. The estate pays tax before distribution, so what you receive is generally tax-free in your hands.
The Canadian position
Income earned on the inheritance after you receive it is taxable to you. Inheriting a registered plan can have its own consequences.
Probate fees and the deemed disposition are borne by the estate, not the recipient.
The Islamic position
An inherited share is lawful property. Where part of an estate derives from impermissible sources, scholars commonly direct that portion to charity rather than to the heirs.
All four schools treat unlawful gain as something to be got rid of rather than enjoyed, and all four hold that an heir who has no idea how the deceased earned his money takes it lawfully — that much the Kuwaiti Encyclopaedia records as ijma‘. Where they differ is what the heirs must do when the tainted amount is known, which is exactly the Canadian case, because a bank statement shows it to the cent. The Hanafi school puts it as the better course and turns on whether the money is identifiable; the Shafi’i school has the heir extract the unlawful portion by his own best estimate; the Maliki position, in Ibn Rushd al-Jadd’s words, is that inheritance does not make unlawful money wholesome at all; Ahmad’s reported rule turns on how large the fund is.
All four Sunni schools researched and sourced. Reviewed 2026-09-01. Full positions, evidence and sources — Interest money in the estate — what must the heirs do?.
Making an Islamic will in Canada — province by province, and what makes one valid where you live →
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Estate deemed disposition ontario — Treadstone Law
- Probate fees vs income tax at death ontario — Treadstone Law
- Do beneficiaries pay tax on inheritance canada — Treadstone Law
- Cryptocurrency deemed disposition tax ontario — Treadstone Law
- Wills & estates practice — Treadstone Law