Finance
The welcome tax (land transfer duties) explained
By Diana Belmonte 2 min read
How much is the welcome tax in Montreal in 2026, when do you pay it and how do you plan for it in your budget? With worked examples.
Among the costs of buying a property, the welcome tax is the one that surprises buyers the most. Its official name is the duties on transfers of immovables, but in Quebec everyone calls it the “taxe de bienvenue”. Here is what you need to know to plan for it without any bad surprises.
What is the welcome tax?
It is a duty paid to the municipality when a property changes hands. It is calculated on the highest of three amounts: the price paid, the price stated in the deed of sale or the assessed value adjusted by a municipal factor. It is paid once, by the buyer.
How is it calculated?
The calculation works in brackets, like income tax: each portion of the price is taxed at its own rate. For 2026, the basic brackets in Quebec are:
- 0.5% on the portion up to $58,900
- 1% on the portion from $58,900 to $294,600
- 1.5% on the portion above $294,600
Several cities add higher brackets. In Montreal, the portion from $294,600 to $552,300 is taxed at 1.5%, then the rate rises to 2% up to $1,104,700, and keeps increasing for higher-value properties.
Two examples in Montreal
$500,000 condo: $294.50 + $2,357 + $3,081, or about $5,732.
$650,000 house: $294.50 + $2,357 + $3,865.50 + $1,954, or about $8,471.
As you can see, the bill climbs quickly with the price. That is why I always include it in my buyers’ budget from our very first meeting.
When do you pay it?
The tax is not paid at the notary. The municipality sends the bill a few weeks to a few months after the deed of sale is signed, and the payment deadline is shown on the bill. The amount cannot be added to your mortgage: you need to plan for it in cash.
Are there exemptions?
Some situations are exempt, including certain transfers between family members. Municipalities also sometimes offer assistance or refund programs for first-time buyers. The rules change: your notary and your municipality are the best sources to confirm whether you qualify.
My advice
Do not settle for a rough guess. Use my welcome tax calculator: it applies the brackets of more than 50 Quebec municipalities. And if you are hesitating between two areas, run the numbers for each one: the difference can influence your choice.
A question about your purchase budget? I am here to answer it.
Diana Belmonte
Residential and commercial real estate broker, Royal LePage Altitude
