Filing a Final Tax Return for Someone Who Died

When someone dies, the CRA still needs one last personal return for them, and sometimes a few more. The deadline depends on the date of death, so work out early who is filing.

Who the legal representative is

Usually it's the executor named in the will. Their job is to get the returns filed and any balance owing paid before the estate is distributed. With no will or no named executor, certain people can apply through the courts. Until someone is appointed, you can ask to act for CRA matters only by mailing Form RC552, Register as Representative for a Deceased Person, to the person's tax centre.

First steps with the CRA and Service Canada

• Tell the CRA the date of death as soon as you can, even if the person wasn't getting benefits. Call 1-800-959-8281, or mail Form RC4111, Notify the Canada Revenue Agency of a Death, to their tax centre.
• Send proof that you're the legal representative: the death certificate (or funeral director's statement of death) and a document naming the executor, such as the will or grant of probate. Processing generally takes 28 business days.
• Cancel any CPP or OAS benefits with Service Canada as soon as possible.

When the final return is due

The June 15 date only moves the filing deadline. Any balance is still due on the usual payment date.

If someone died early in 2026, on or before their 2025 filing deadline, without filing their 2025 return, it's due 6 months after the date of death. Older unfiled years still have to be filed and keep their original due dates (see catching up on unfiled back taxes).

What goes on the final return

It covers income from January 1 to the date of death. Without optional returns, everything earned up to the death goes on it, even if paid afterwards.

• Deemed disposition. The person is treated as having sold all their capital property (real estate, investments, personal belongings) at fair market value just before death, which can create a capital gain or loss. The principal residence exemption can cover some or all of the gain on a home, but you still designate it on Form T1255.
• Spousal rollover. Property left to a surviving spouse or common-law partner resident in Canada (or to certain trusts) may pass without a gain on the final return. The gain waits until the spouse sells or is deemed to sell. The representative can elect out, property by property.
• RRSPs and RRIFs. Generally, the full value of an unmatured RRSP or a RRIF at death is income on the final return. If an RRSP all goes to the surviving spouse or partner and is transferred directly into their own RRSP, RRIF or other eligible plan by the end of the following year, they report it and claim an equal deduction instead. A spouse or partner can also take over a RRIF as the new annuitant. In some other cases the amount can be reduced.

Optional returns

Up to three optional returns can also be filed. None are required, but they can lower the tax because some credits can be claimed more than once or split.

• Rights or things. Amounts earned but not received before death, like pay owed for a pay period that ended before death, or dividends declared but unpaid. Not capital gains. Due one year after the death or 90 days after the final return's notice of assessment is sent, whichever is later, though any balance is due with the final return's.
• Partner or proprietor. If the person's business year didn't end December 31, the income from the end of that business year to the date of death. Same due dates as the final return.
• Income from a graduated rate estate. Income from another person's estate between that estate's year-end and the date of death. Same due dates.

Late filing and the clearance certificate

A late return with a balance owing costs 5% of the balance plus 1% per full month late, up to 12 months, plus interest. It can be higher if a late-filing penalty was charged in any of the 3 previous years. Filing on time avoids the penalty even if you can't pay yet.

Before handing out assets, ask for a clearance certificate on Form TX19, Asking for a Clearance Certificate (plus Form GST352 if the person had a GST/HST number). Apply once the returns are assessed and the tax is paid or secured. Sending it with the returns only delays them. It can take up to 120 days. Distribute without one while tax is owing and you're personally liable, up to the value of what you handed out. Income the estate earns after the death goes on its own T3 returns.

How we help

We prepare the last personal return for someone who has passed away and handle the correspondence, walking the family through each step at whatever pace suits them. With your authorization, our CRA advocacy work includes answering CRA letters for you.