What is the welcome tax (property transfer duties)?

The "welcome tax" is the common name for the property transfer duty (droit de mutation immobilière): an amount that the new owner of a building pays to the municipality where it is located. All municipalities in Québec must collect it, but the calculation depends on the municipality (brackets, rates and comparative factor). In general, a tax base is multiplied by rates that vary according to value brackets. The examples below come from Montréal and Québec City, and their 2026 figures are different. General information only: for your situation, contact your municipality.

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Key facts

Who pays, and to whom

The new owner, to the municipality where the building is located. All municipalities in Québec must collect this duty.

Tax base

The highest of the price paid (excluding GST and QST), the amount stated in the deed of sale and the market value (roll value × comparative factor). The calculation is therefore not always based on the sale price.

Example: Montréal (2026)

0.5% up to $62,900; 1% from $62,900 to $315,000; 1.5% from $315,000 to $552,300; 2% from $552,300 to $1,104,700; 2.5% from $1,104,700 to $2,136,500; 3.5% from $2,136,500 to $3,113,000; 4% from $3,113,000. 2026 comparative factor: 1.00. According to the City, a tax base of $700,000 gives $9,349.00 in 2026.

Example: Québec City (2026)

0.5% up to $62,900; 1.0% from $62,900 to $315,000; 1.5% from $315,000 to $500,000; 2.5% from $500,000 to $750,000; 3.0% above $750,000. 2026 comparative factor: 1.08.

Payment

Montréal: a single payment, within 30 days of the bill being sent. Québec City: 3 equal instalments, without interest (30, 90 and 150 days after the account is sent); if the bill is $300 or less, it is payable in full within 30 days.

Exemption

Possible in certain situations, for example if the value of the building is under $5,000 or for a transfer between relatives. The brackets change every year: check the scale in force in your municipality.

Steps

1. Know who pays: the property transfer duty is paid to the municipality by every new owner of a building located on its territory. If several people buy together, they are jointly responsible for the payment (according to Montréal).
2. Find the tax base: it is the highest of three amounts, namely the price actually paid (excluding GST and QST), the amount stated in the deed of sale, or the market value of the building (value on the property assessment roll multiplied by the comparative factor).
3. Look up your municipality's brackets and rates: they vary from one municipality to another and change every year. Check your municipality's website (the Montréal and Québec City pages are examples).
4. Check whether an exemption is possible. For example, a new owner may be exempt when the value of the building is under $5,000 or for a transfer between relatives. The notary enters a mention in the deed of sale (according to Québec City).
5. Wait for the municipality's bill and pay it before the deadline. In Montréal, it is payable in a single payment, within 30 days of being sent. In Québec City, it can be paid in 3 equal instalments, without interest.
6. Find out about possible help: Montréal mentions a residential acquisition support program (for households with at least one child under 18), and Québec.ca says a tax credit administered by Revenu Québec could apply to buying a home. Check the conditions on the official pages.

General information drawn from official sources. It does not replace legal, medical or financial advice. For your situation, contact the organization concerned or a professional.