CanadaCan a province impose succession duties on property located in another province?
No, a province cannot impose succession duties on property located outside its borders. The Supreme Court of Canada held in Covert v. Minister of Finance of Nova Scotia that such a tax violates the constitutional division of powers.
What the Law Says
The Constitution Act, 1867 assigns taxation powers to provinces and Parliament. Succession duties (estate taxes) fall under provincial authority—but only over property within the province’s jurisdiction.
Section 92(13) of the Constitution Act, 1867 gives provinces exclusive authority over 'Property and Civil Rights in the Province.' This power is territorial: it does not extend to property situated outside the enacting province.
Succession duties are taxes imposed on the transfer of property upon death. Because they attach to the property itself—and not merely to the deceased or executor—the location of the property determines which province may lawfully tax it.
A province attempting to tax real or personal property located in another province exceeds its constitutional authority and infringes on the other province’s jurisdiction under s. 92(13).
Statutory TextIn each Province the Legislature may exclusively make Laws in relation to... Property and Civil Rights in the Province...
— Constitution Act, 1867, s. 92(13) — Property and Civil Rights
What Courts Have Said
The Supreme Court of Canada directly addressed this issue in Covert v. Minister of Finance of Nova Scotia.
Nova Scotia attempted to impose a succession duty on shares of a Nova Scotia corporation held by a deceased resident of Ontario, where the shares were deemed situated in Nova Scotia. The Court held the tax unconstitutional because the property was effectively outside Nova Scotia’s jurisdiction — succession duties cannot apply to property located in another province.
What to Do
Confirm the physical and legal situs (location) of each asset in the estate — e.g., real property is situated where it lies; shares are generally situated where the corporation is incorporated or where records are kept.
Only the province where the property is situated may lawfully impose succession duties on that property.
If a province attempts to tax out-of-province property, consult a lawyer to challenge the assessment based on constitutional grounds.
Note: Most Canadian provinces abolished succession duties decades ago; only Quebec retains a form of estate tax (‘droits de mutation’), but it applies only to property situated in Quebec.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.