Families

Tax Tip: Is Inheritance Money Taxed?

Overview

Money received from an inheritance, like most gifts and life insurance benefits, is not considered taxable income by the Canada Revenue Agency, so you don’t have to pay taxes on that money. Of course, this doesn’t mean that an inheritance is immune from Canadian tax laws. The deceased person’s estate has to pay taxes on any income, including investment income, before the money is released to you. If you invest inheritance money, you’ll pay taxes on any gains.

Key Concepts

  • inheritance taxed Canada
  • inheritance income tax
  • inheritance Revenue Canada