Welcome Tax in Quebec — Calculation Guide
The land transfer tax, commonly called the “welcome tax” (taxe de bienvenue), is a transfer duty payable to the municipality on any property transfer in Quebec. Learn the brackets, exemptions, and precise calculations.
What Is the Welcome Tax?
The “welcome tax” is the popular name for the land transfer duty, established by Quebec’s Act Respecting Duties on Transfers of Immovables (R.S.Q., c. D-15.1). Despite its name, it has nothing to do with welcoming new homeowners — the term comes from Jean Bienvenue, the Quebec minister who introduced it in 1976.
This tax is payable by the buyer on any property transfer in Quebec, whether it’s a house, condo, land, or income property. It is calculated on the higher of the sale price and the municipal assessment roll value multiplied by the applicable comparative factor.
Welcome Tax Calculation Brackets in Quebec
The welcome tax is calculated using progressive brackets, similar to income tax. The standard Quebec rates are:
| Tax Base Bracket | Rate |
|---|---|
| $0 to $58,900 | 0.5% |
| $58,900 to $294,600 | 1.0% |
| $294,600 to $500,000 | 1.5% |
| $500,000 and above | 2.0% |
Note: these thresholds are adjusted annually by the Quebec government based on the new housing price index. The amounts above are in effect for 2025–2026. Consult the Revenu Quebec website for the most current thresholds.
City of Montreal Surtax
Since 2017, the City of Montreal has imposed an additional surtax on high-value property transfers. This surtax is added to the standard transfer duties:
| Additional Bracket (Montreal) | Additional Rate |
|---|---|
| $500,000 to $1,000,000 | 0.5% |
| $1,000,000 to $2,000,000 | 1.0% |
| $2,000,000 and above | 1.5% |
Some other Quebec municipalities may also impose higher rates for upper brackets. Always verify with your notary or mortgage broker.
Calculation Examples
Here are welcome tax calculation examples for typical Quebec properties:
| Purchase Price | Municipality | Welcome Tax | Calculation Detail |
|---|---|---|---|
| $300,000 | Quebec (outside Montreal) | $2,731 | ($58,900 × 0.5%) + ($235,700 × 1.0%) + ($5,400 × 1.5%) |
| $500,000 | Quebec (outside Montreal) | $5,812 | ($58,900 × 0.5%) + ($235,700 × 1.0%) + ($205,400 × 1.5%) |
| $600,000 | Montreal | $8,312 | Standard duties ($6,812) + Montreal surtax ($100,000 × 0.5% = $500) + ($100,000 × 2.0% = $2,000) — see full detail |
| $800,000 | Montreal | $12,312 | Standard duties + surtax on $300,000 above $500,000 |
These calculations are provided for reference. The actual tax base may differ from the sale price if the assessment roll value (multiplied by the comparative factor) is higher. Your notary will calculate the exact amount.
Exemptions and Special Cases
Certain transactions are exempt from the land transfer duty in Quebec:
- Transfer between spouses (married or in a civil union, NOT common-law partners)
- Transfer between direct ascendants and descendants (parent-child) under certain conditions
- Transfer to a registered charity
- Certain transfers as part of a corporate reorganization
- Properties with a tax base under $5,000
Important: common-law partners (not married) do NOT qualify for the exemption. A transfer between common-law partners is subject to the full welcome tax. The AMF recommends consulting a notary to verify your eligibility for an exemption.
When and How to Pay the Welcome Tax
The welcome tax is billed by the municipality within 90 days of the property transfer (notarial deed). The payment deadline is typically 30 days after receiving the notice. In practice, most buyers receive the bill between 3 and 6 months after the signing date at the notary’s office.
The welcome tax CANNOT be financed through your mortgage. It is payable separately to the municipality. Budget for this amount in your purchase plan — it is a closing cost often overlooked by first-time buyers.
Tip: Anthony King systematically includes the welcome tax calculation in every pre-approval file to avoid surprises at closing.
Anthony King Helps You Plan All Your Closing Costs
The welcome tax is just one of the closing costs to plan for. Anthony King, mortgage broker in Montreal, prepares a complete picture of all costs: welcome tax, notary fees, inspection, appraisal, title insurance, and tax adjustments. No surprises at signing.
Contact Anthony King at 514-647-8663 or aking@kingstate.ca for a precise estimate of your closing costs.
Frequently Asked Questions
Is the welcome tax the same in all Quebec cities?
The base brackets are uniform across Quebec under the Act Respecting Duties on Transfers of Immovables. However, some municipalities, notably Montreal, impose additional rates on high-value properties (surtax of 0.5% to 1.5% above $500,000). Always verify the specific rates in your municipality.
Are first-time buyers exempt from the welcome tax?
No, there is no general first-time buyer exemption from the welcome tax at the provincial level in Quebec. However, some municipalities offer partial reimbursement programs. The City of Montreal has historically offered a reimbursement program for first-time buyers of new properties in certain areas. Check current municipal programs with your broker.
Can the welcome tax be financed through the mortgage?
No, the welcome tax cannot be included in your mortgage amount. It is payable directly to the municipality after signing at the notary’s office. This is a closing cost you must budget for in cash. For a $400,000 property outside Montreal, expect approximately $4,000.
Need a Closing Cost Estimate?
Anthony King calculates all your closing costs, including the welcome tax, in every pre-approval file. Free consultation.