DeedWorthGuide · Quebec

Welcome Tax in Quebec: How It's Calculated in 2026 (and How Much to Budget)

Q: Can you be exempt from the welcome tax?

Yes, some transfers between related persons such as spouses or in the direct line are exempt, but a smaller special duty may apply. A notary confirms eligibility case by case.

The "welcome tax" — officially the land transfer duties (droits sur les mutations immobilières) — is one of the acquisition costs buyers most often underestimate. It can amount to several thousand dollars, arrives a few weeks after the purchase, and is paid in one shot. Here's exactly how it's calculated and what to set aside.

Where does the name come from?

The nickname has nothing to do with a warm welcome: it comes from Jean Bienvenue, the Quebec minister under whom the law was passed in the 1970s. Officially, we speak of transfer duties, collected by the municipality on every property transfer.

The tax base: what the calculation is applied to

The duties don't automatically apply to the price paid. The tax base is the greatest of the following three amounts:

the price paid to acquire the property;
the sale price stated in the deed of transfer;
the market value at the time of transfer, i.e. the value on the property assessment roll multiplied by the year's comparative factor.

That last point catches people off guard: if you buy below the roll value, it's still the roll value (× factor) that serves as the base. Conversely, in a rising market, it's generally the price paid that dominates.

The 2026 brackets and rates (standard provincial scale)

For most Quebec municipalities, the 2026 scale applies in brackets, indexed each year to Quebec's CPI:

Tax base bracket	Rate
$0 to $62,900	0.5%
$62,900.01 to $315,000	1.0%
$315,000.01 and up	1.5%

A municipality may, by by-law, set a higher rate (up to 3%) on the portion of value exceeding $500,000.

The Montreal case

Montreal exercises this power and applies additional tiers on high-value properties, beyond the three base provincial brackets. Since Montreal's high-tier thresholds and rates are specific and revised, the most reliable approach is to use the City of Montreal's official calculator to get the exact amount in your case. As an order of magnitude, a tax base of $700,000 in Montreal represents about $9,350 in duties.

A calculation example (standard scale)

Take a tax base of $400,000 in a municipality on the standard provincial scale. The calculation is done bracket by bracket:

$0 → $62,900: 62,900 × 0.5% = $314.50
$62,900 → $315,000: 252,100 × 1.0% = $2,521.00
$315,000 → $400,000: 85,000 × 1.5% = $1,275.00
Total ≈ $4,110.50

The amount rises quickly with the price, especially in municipalities that apply increased brackets above $500,000.

When and how to pay it

The duties are billed by the municipality after the transaction — often several weeks, sometimes a few months later. The invoice is generally payable in a single instalment, within a stated deadline (for example 30 days after it is sent). You therefore need to keep the required cash on hand after closing: it's an expense that can't be financed through the mortgage.

Exemptions and special duties

Some transfers are exempt from transfer duties, notably between related persons in cases provided for by law (for example between spouses, or in the direct ascending/descending line). Note: an exemption may still trigger a special duty (a smaller amount) depending on the situation. The conditions are precise; a notary confirms eligibility case by case.

A cost that reduces your future tax

Good news for the long run: the welcome tax paid on purchase is added to the property's adjusted cost base. It therefore reduces the taxable capital gain on a future resale. Keep the invoice. For the details of this mechanism, see our guide on real estate capital gain in Quebec.

Building it into your purchase analysis

The welcome tax is one of the acquisition costs to include right from the profitability analysis, just like the notary and the inspection. DeedWorth builds these costs into the return and projection calculations, so that the cash-on-cash reflects the real expense, not an optimistic version with no closing costs. Analyze a property with DeedWorth →

FAQ

How is the welcome tax calculated in Quebec? It applies in brackets to the tax base, which is the greatest of the price paid, the price in the deed, and the roll value multiplied by the comparative factor. The standard 2026 provincial scale is 0.5% up to $62,900, 1% up to $315,000, then 1.5% above.

What amount is the tax calculated on? On the greatest of the purchase price, the price stated in the deed, and the market value on the assessment roll multiplied by the year's comparative factor.

When do you pay the welcome tax? The municipality sends the invoice after the transaction, often a few weeks later. It's generally payable in a single instalment within the stated deadline and can't be financed through the mortgage.

Can you be exempt from the welcome tax? Yes, some transfers between related persons (spouses, direct line) are exempt, but a smaller special duty may apply. A notary confirms eligibility.

Is the welcome tax tax-deductible? Not from current rental income, but it's added to the property's adjusted cost base, which reduces the taxable capital gain at resale.