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Do I have to pay tax on an inheritance I receive?

No. Canada has no inheritance tax. The estate pays tax before distribution, so what you receive is generally tax-free in your hands.

Draft — pending review. This page has been prepared but has not yet been reviewed by a Canadian estates lawyer or a qualified scholar. Treat it as a starting point for questions, not as advice you should act on.

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.

Across the madhahib

The four Sunni schools are not recorded as differing materially on this point in the sources reviewed. Where your own case turns on it, put it to a scholar of your school.

Before you act on this

General information, not legal or religious advice. Inheritance depends entirely on the exact family circumstances. Confirm the Canadian position with a lawyer in your province and any religious ruling with a qualified scholar.

Citations & sources

Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.

Scholarly & institutional references
  1. Research Papers — Cambridge Muslim College
  2. Research — Cambridge Muslim College
  3. Academics — Islamic law and theology curriculum — Zaytuna College
  4. Encyclopaedia of Islam — Brill
Canadian legislation & government
  1. What to do when someone has died — Canada Revenue Agency
  2. Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
Canadian legal commentary
  1. Us estate tax exposure ontario resident us property — Treadstone Law
  2. Non resident executor estate tax residency ontario — Treadstone Law
  3. Distribute estate before clearance certificate ontario — Treadstone Law
  4. Deemed disposition vs gifting during lifetime ontario — Treadstone Law
  5. Deceased final tax return estate taxes ontario — Treadstone Law
  6. Clearance certificate delay affects closing ontario — Treadstone Law
  7. Wills & estates practice — Treadstone Law