Tax year-end and fiscal period

Graduated rate estate

A graduated rate estate (GRE) can have a non-calendar tax year (the period for which the accounts of the estate are made up for purposes of assessment). A GRE will have a deemed tax year-end on the day on which the estate ceases to be a GRE, which will be no later than the day on which the 36-month period after the death of the individual ends.

Later tax year-ends will generally be on a calendar-year basis. For example, where an estate is created in June 2022 and is a GRE for 2022, 2023, and 2024, a deemed year-end will occur in June 2025 on the three-year anniversary of the individual's date of death. The testamentary trust will also have a tax year-end on December 31, 2025.

Other trusts

All other trusts are generally required to use a December 31 tax year-end. However, an exception is available for mutual fund trusts that elect to have a December 15 year-end. A mutual fund trust that previously elected to have a December 15 year-end can revoke the election.

Deemed year-end rules for all trusts

There are other situations in which a trust would be subject to a deemed year-end that may affect its tax year-end. For example, if a trust ceased to be resident in Canada on June 14, 2025, a deemed year-end would be triggered and the trust would be considered to have a tax year from January 1 to June 14, 2025.

Tax tip

For certain testamentary and inter vivos trusts, a deemed tax year-end will occur upon the death of a particular beneficiary of the trust. For more information on the due date for filing the T3 return and payment of tax for the deemed tax year-end, see Form T1055, Summary of Deemed Dispositions.

Filing dates

You have to file the T3 return, the related T3 slips, NR4 slips, and T3 and NR4 Summaries no later than 90 days after the trust's tax year-end (read the section Tax year-end and fiscal period). You should also pay any balance owing no later than 90 days after the trust's tax year-end.

Tax tip

For mutual fund trusts that filed an election to have a tax year-end of December 15, where the pre-loss restriction event year-end is after December 15 in that calendar year, the NR4 return must be filed within 90 days after the end of that December 15 tax year. In any other case, the NR4 return must be filed within 90 days after the end of the calendar year during which the pre-loss restriction event year-ends.

If you do not have the information slips you need to fill out the return when it is due, estimate the income. If, after you receive the slips, you find your estimate differs from the actual amounts, send the slips and a letter to the CRA, requesting an adjustment to the trust's income. For more information, read the section Reassessments.

Received dates

If you mail the return first class, or if you use an equivalent delivery service, the CRA considers the date of the postmark on the envelope to be the day you filed the return.

When the due date falls on a Saturday, Sunday, or public holiday recognized by the CRA:

Your return is considered on time if the CRA receives it, or if it is postmarked on or before the next business day. For more information, go to Due dates and payment dates
Your payment is considered on time if the CRA receives it on or if it is processed at a Canadian financial institution on or before the next business day. For more information, go to When to pay a balance you owe on your trust return.

For more information on filling dates, go to When to file a trust return.

Deadline for distributing T3 slips - You must send the T3 slips to the beneficiary's last known address no later than 90 days after the end of the trust's tax year. If you have the information you need to fill out the slips before that deadline, the CRA encourages you to send them to the beneficiaries as early as possible.

Final T3 return

For a testamentary trust that is a graduated rate estate, the tax year will end on the date of the final distribution of the assets. You have to file the final T3 return and pay any balance owing no later than 90 days after this date. Enter the date the trust ceased to exist on page 2 of the return.

If you wind up an inter vivos trust or a testamentary trust (other than a graduated rate estate), the trust's tax year does not change from being a calendar year. You have to file the final T3 return and pay any balance owing no later than 90 days from the end of the calendar year in which the trust ceased to exist.

In either case, you should get a clearance certificate before you distribute the trust property. For more information, read the section Clearance certificate.