Refundable Tax Credit for Home Ownership Access — up to $5,875 for first-time buyers in Quebec
The Quebec government refunds up to $5,875 of land transfer duties (the “welcome tax”) paid by first-time buyers. Retroactive to January 1, 2026, claimed via the income tax return. Here is how it works, who qualifies, and how it stacks with federal first-time buyer programs.
What is the Refundable Tax Credit for Home Ownership Access?
On April 17, 2026, the Quebec government announced a new refundable tax credit aimed at first-time buyers. The credit refunds a portion of the land transfer duties — commonly called the “welcome tax” — paid on the purchase of a first principal residence.
The credit is retroactive to January 1, 2026. If you purchased your first principal residence in Quebec between January 2026 and today, you qualify — even if you have already paid your welcome tax. You will claim it (or adjust your prior return) through your Quebec income tax return.
Important: the credit is refundable. That means even if your tax owing is zero or less than the credit, Revenu Québec pays you the difference. For most first-time buyers, the credit is therefore recovered in full.
How much you can recover: the $5,875 calculation
The credit is calculated directly on the welcome tax you paid to your municipality. The formula is progressive:
The formula:
- 100% of the first $5,000 of welcome tax paid
- Plus 25% of the amount above $5,000
- Capped at a total maximum of $5,875
In practice, this fully covers the welcome tax for most purchases under $500,000 — and offsets a meaningful portion for higher-priced purchases.
Important: the credit applies only to the welcome tax (land transfer duties). Notary fees, inspection, appraisal and other closing costs are not covered.
Who qualifies?
Per the technical document published by Quebec’s ministry of Finance (April 17, 2026, page 4), eligibility rests on four criteria:
5-year occupancy rule (first-time buyer)
You must not have occupied a home that you or your spouse (including common-law partner) owned during the year of the acquisition or any of the four preceding calendar years. This 5-year window (current year + 4 prior) includes joint ownership with a former spouse. Source: page 4 of the ministry of Finance technical document.
Principal residence
The property must be your principal residence — not an income property, cottage or secondary residence.
Eligible property type
The ministry of Finance enumerates the eligible types on page 4: detached, semi-detached or row houses; manufactured or mobile homes; duplexes and triplexes; condos in DIVIDED co-ownership; apartments in residential multi-unit buildings. UNDIVIDED co-ownership is NOT eligible.
Purchase price under $1,000,000
The credit is zero for properties at $1,000,000 or above. Between $750,000 and $1,000,000, the credit is progressively reduced according to a published linear formula (see next section).
Edge case to verify: if you buy as a couple while your spouse owned a residence within the last 5 years (even before your union), the couple’s eligibility may be affected. The same logic applies to prior ownership with a former spouse. Validate your specific situation with your mortgage broker before signing.
Phase-out zone: $750,000 to $1,000,000
The graph on page 3 of the ministry of Finance technical document shows a linear reduction of the credit between $750,000 and $1,000,000.
Final credit = Base credit × factor, where the factor linearly phases out the credit between $750,000 and $1,000,000:
- Price ≤ $750,000: factor = 1 (full base credit per the 100%/25% formula)
- $750,000 < Price < $1,000,000: factor = (1,000,000 − Price) ÷ 250,000
- Price ≥ $1,000,000: factor = 0 (no credit)
Four worked examples using the official formula, assuming the base credit is $5,875 (welcome tax sufficient to reach the cap):
- Price $750,000 → factor 1.00 → credit $5,875
- Price $875,000 → factor 0.50 → credit $2,937.50
- Price $950,000 → factor 0.20 → credit $1,175
- Price $1,000,000 → factor 0.00 → credit $0
Important: the factor applies to the BASE credit (computed via the formula 100% × first $5,000 + 25% × next $3,500). If your welcome tax is below $8,500, the base credit will be below $5,875 and the final credit in the phase-out band will be proportionally smaller. Source: graph on page 3 of the ministry of Finance technical document.
Official examples from the ministry of Finance
Here are the three examples published by Quebec’s ministry of Finance on page 5 of the technical document (April 17, 2026):
| Purchase price | Welcome tax (estimated) | Credit recovered | Net cost of the tax |
|---|---|---|---|
| $292,000 | ~$2,606 | $2,606 | $0 |
| $427,000 | ~$4,516 | $4,516 | $0 |
| $616,000 | ~$9,091 | $5,875 | $3,216 |
- $292,000 (Rimouski (official example, page 5)) — Below the $5,000 threshold: welcome tax refunded at 100%. Full recovery.
- $427,000 (Lévis (official example, page 5)) — Still below $5,000 in duties: 100% refunded. Zero net cost.
- $616,000 (Laval (official example, page 5)) — $5,000 at 100% ($5,000) + $3,500 at 25% ($875) = $5,875, cap reached. The credit covers 65% of the tax paid.
Note on the formula: the 25% tier applies only to the slice between $5,000 and $8,500 of welcome tax ($3,500 × 25% = $875). Beyond $8,500 in tax, no additional credit — the $5,875 cap is reached. For Montreal and cities with surtax above $500,000, total tax can exceed $8,500 quickly; the credit remains capped at $5,875.
How to claim the credit
The credit is claimed on your Quebec income tax return, not at the notary’s office. Concretely:
- Step 1 — At the notary: you pay the full welcome tax to the municipality as usual (billed within 90 days after the deed). The notary does not deduct the credit.
- Step 2 — Keep the welcome tax invoice along with your notarial deed. These are your supporting documents.
- Step 3 — On your Quebec income tax return for the fiscal year of the purchase (April/May of the following year), enter the credit in the appropriate section (the precise form will be published by Revenu Québec).
- Step 4 — If you purchased between January and April 2026 and have already filed your tax return, you can adjust it (form TPF-1.R or an adjustment request to Revenu Québec).
The refund is paid to you by direct deposit or cheque depending on your tax profile, like any refundable tax credit.
Timeline: advance payment from October 2026 OR claim via tax return
The ministry of Finance provides TWO mechanisms (page 4 of the technical document): (1) an advance payment from October 2026 if the eligible amount exceeds $1,000; (2) a regular claim via your Quebec income tax return.
Detailed sequence:
Day of signing
You pay the down payment, notary fees, title insurance and tax adjustments. The welcome tax is NOT yet billed.
0 to 90 days after signing
The municipality sends the welcome tax invoice. You typically have ~30 days to pay.
From October 2026 onward (advance payment option)
If your eligible credit exceeds $1,000, you can request advance payment from Revenu Québec without waiting for your income tax return. Exact mechanism to be published by Revenu Québec.
April/May of the year following the purchase
Regular claim via your Quebec income tax return (or adjustment if advance payment already received).
8 to 12 weeks after filing
If you did not take the advance payment, Revenu Québec issues the refund (direct deposit or cheque).
Practical consequence: with the advance payment (October 2026 onward, if eligible amount > $1,000), you can receive the credit within weeks rather than 12 to 18 months. But you must still have the cash to pay the full welcome tax to the municipality as soon as it is invoiced — the credit does not reduce your initial cash need, it only accelerates the refund.
Stacking the credit with federal and provincial programs — $8,444 total stack
Table 1 on page 6 of the ministry of Finance technical document quantifies the combined fiscal aid at $8,444 for a fully eligible Quebec first-time buyer: $5,875 + $1,400 + $1,169. Program details:
1. REFUNDABLE Home Ownership Access Tax Credit (Quebec)
Up to $5,875 refunded on the welcome tax. Subject of this guide. Retroactive to January 1, 2026, advance payment from October 2026 if eligible amount > $1,000.
2. NON-REFUNDABLE Tax Credit for Purchase of First Home (Quebec)
$1,400 non-refundable provincial credit (existed before the new $5,875 refundable credit — the two stack). Claimed on the Quebec income tax return.
3. Federal Home Buyers’ Tax Credit (HBTC)
$1,169 for Quebec residents ($1,400 × (1 − 16.5% Quebec abatement)) on the federal return, line 31270. Non-refundable credit.
4. FHSA (First Home Savings Account)
Tax-free savings account for first home purchase. Tax-deductible contributions ($8,000/year, $40,000 lifetime cap), non-taxable withdrawals.
5. HBP (Home Buyers’ Plan)
Withdraw up to $60,000 per person from RRSP (cap raised in April 2024). Repaid over 15 years.
6. 30-year amortization (insured new construction)
First-time buyers on insured new construction: maximum amortization raised from 25 to 30 years since December 2024. Lower monthly payments.
7. Federal GST/HST first-time home buyer rebate (Bill C-4)
Royal Assent on March 12, 2026. GST rebate up to $50,000 on new construction. Official formula: Rebate = C × ((1,500,000 − Price) ÷ 500,000), where C = min($50,000, GST paid). 100% rebate under $1,000,000, linearly reduced to $0 at $1,500,000. Example: $1,250,000 home = $25,000 rebate. Bill C-4 conditions: agreement signed after March 19, 2025 and before January 1, 2031, construction substantially completed before 2036.
For a Quebec first-time buyer fully eligible to all programs, the total stack can exceed $75,000 in economic value recovered or preserved (credits + GST rebate + FHSA tax savings + 30-year amortization). Your mortgage broker can produce a precise picture for your situation.
Anthony King integrates the credit into every first-time buyer file
At Anthony King — Architectes Hypothécaires, the home ownership access credit has been integrated into first-time buyer financial planning since its announcement. You receive:
- Welcome tax calculation for your target municipality
- Estimated recoverable credit based on your profile
- Stacking with FHSA, HBP, 30-year amortization, and federal GST rebate where applicable
- Cash-flow timeline: what you need on hand at signing, what you will recover 12–18 months later
No surprises at closing, and no credit forgotten in your planning. Contact Anthony King for a free consultation.
Related guides
First-time buyer stacking calculator (6 programs) →
First-time buyers in Montreal →
Frequently Asked Questions
I bought my first home in January 2026 and have already paid my welcome tax. Can I still claim the credit?
Yes. The credit is retroactive to January 1, 2026. If you bought between that date and the official rollout, you can claim it (or adjust your already-filed return via Revenu Québec’s adjustment process) when you file your 2026 Quebec income tax return (April/May 2027).
Does the notary apply the credit at closing?
No. The notary plays no role in applying the credit. You pay the full welcome tax to your municipality (billed within 90 days of the deed), then claim the credit separately through your Quebec income tax return. Keep your welcome tax invoice — it is your supporting document.
I am buying a condo at $850,000 in Montreal. How much do I recover?
Using the linear formula published on page 3 of the ministry of Finance technical document: factor = (1,000,000 − 850,000) ÷ 250,000 = 0.60. If your welcome tax exceeds $8,500 (which is the case for Montreal at $850,000 with the municipal surtax), the base credit is $5,875 → final credit = $5,875 × 0.60 = $3,525. For exact precision on your file (you may also be entitled to the $1,400 non-refundable credit and the $1,169 federal HBTC), consult your mortgage broker.
Can I combine this credit with the federal GST first-time home buyer rebate?
Yes, the two programs are complementary. The Quebec credit applies to the welcome tax paid to the municipality (on any first principal residence, new or existing). The federal GST rebate (Bill C-4) applies to GST paid on the purchase of a new home of $1M or less. If you buy new construction eligible for both programs, you can stack them.
Does the credit apply to cottages or income properties?
No. The credit applies only to the purchase of a principal residence by a first-time buyer. Secondary residences (cottages, vacation condos) and income properties are not eligible.
Run the numbers with a mortgage broker
Anthony King integrates the home ownership access credit into every first-time buyer pre-approval file. Precise estimate based on your municipality, stacking with federal programs, full cash-flow timeline. Free consultation.