Quebec’s Welcome Tax, officially called the Droit de Mutation Immobiliere, is a one-time transfer tax paid to the municipality when ownership of immovable property (real estate) is transferred. It is governed by the Act Respecting Duties on Transfers of Immovables (Loi concernant les droits sur les mutations immobilieres) and is collected by the municipality, not by the Quebec provincial government or Revenu Quebec. The tax applies province-wide in Quebec, with municipalities able to add higher tiers on top of the provincial base schedule.
Quick Answer
For most Quebec municipalities in 2026, the Welcome Tax on a $400,000 purchase is: 0.5% x $55,200 = $276 + 1.0% x $221,000 = $2,210 + 1.5% x $123,800 = $1,857 = $4,343 total. Montreal applies higher additional tiers for properties above $552,300, resulting in significantly higher tax on luxury residential purchases.
Provincial Base Brackets
| Portion of consideration | Rate |
|---|---|
| First $55,200 | 0.5% |
| $55,201 to $276,200 | 1.0% |
| Over $276,200 | 1.5% |
These base brackets apply throughout Quebec. Municipalities cannot reduce below the provincial base, but can add higher tiers above $276,200 at their discretion.
Montreal Extended Brackets
Montreal has enacted additional tiers that apply to properties above the provincial base limit. The Montreal 2026 schedule:
| Portion of consideration | Rate |
|---|---|
| First $55,200 | 0.5% |
| $55,201 to $276,200 | 1.0% |
| $276,201 to $552,300 | 1.5% |
| $552,301 to $1,104,700 | 2.0% |
| $1,104,701 to $2,136,500 | 2.5% |
| $2,136,501 to $3,113,000 | 3.5% |
| Over $3,113,000 | 4.0% |
Other Quebec municipalities with similar extended tiers include Laval, Quebec City, and Longueuil, though their exact breakpoints may differ from Montreal’s schedule. Always confirm with the specific municipality.
How the Welcome Tax Is Calculated
The tax base is the greater of: (a) the consideration paid (purchase price); (b) the market value stated in the transfer deed; (c) 1.00 times the municipal assessment value (effective for transfers on or after January 1, 2023, the multiplier is 1.00 — previously this was 1.10).
In most residential transactions, the tax base equals the purchase price. If the property is transferred as a gift at below-market price, the municipal assessment value (role) may be higher than the consideration, making it the effective tax base.
Worked Example: Provincial Rate ($500,000)
Property purchased for $500,000 in Quebec City (no extended tiers beyond provincial base).
- 0.5% x $55,200 = $276
- 1.0% x $221,000 = $2,210
- 1.5% x $223,800 = $3,357
- Total Welcome Tax: $5,843
Worked Example: Montreal Rate ($800,000)
Property purchased for $800,000 in Montreal.
- 0.5% x $55,200 = $276
- 1.0% x $221,000 = $2,210
- 1.5% x $276,100 = $4,142
- 2.0% x $247,700 = $4,954
- Total Welcome Tax: $11,582
When the Welcome Tax Is Due
The municipality sends an invoice (avis de cotisation) after the transfer is registered at the land registration office. Payment is typically due within 30 days of receiving the invoice. The tax is not paid at the notary’s office on closing day; it arrives separately by mail afterward.
Comparison to Other Provinces
| Province | Transfer tax | Rate on $500,000 |
|---|---|---|
| Quebec (outside Montreal) | Welcome Tax | $5,843 |
| Montreal | Welcome Tax (extended) | $7,105 |
| Ontario | LTT | $6,475 |
| BC | PTT | $8,000 |
| Alberta | None | $0 |
Exemptions
Several Quebec Welcome Tax exemptions exist:
- Transfers between spouses (including civil union partners) where one assumes the other’s mortgage
- Transfers to a corporation that is wholly owned by the transferor (subject to conditions)
- Transfers to a legally recognized religious organization for religious use
- Agricultural land transfers to a family member under specific conditions
There is no general first-time buyer exemption from the Quebec Welcome Tax at the provincial level. Some municipalities have introduced incentive programs for first-time buyers, but these are locally administered and vary by municipality.
Edge Cases and Rules
- GST and QST are not charged on the Welcome Tax itself. The Welcome Tax is a municipal duty, not a provincial or federal tax.
- The 2023 reduction of the multiplier from 1.10x to 1.00x of municipal assessment means the tax base is now exactly the municipal assessment value (or purchase price if higher), not 110% of assessment.
- Properties held in a trust or by a corporation may face different tax base calculations if the consideration is not at arms’ length.
- Undivided co-ownership transfers (such as certain condo situations) are subject to the Welcome Tax on the proportionate share transferred.
Frequently asked questions
- What is Quebec's Welcome Tax?
- The Welcome Tax (Droit de Mutation Immobiliere) is a one-time municipal transfer tax paid when real property changes hands in Quebec. It is governed by provincial legislation but collected by the municipality. Rates are tiered: 0.5% on the first $55,200; 1.0% to $276,200; 1.5% above. Montreal adds higher tiers above $552,300.
- Does the Welcome Tax apply in Montreal?
- Yes, and at higher rates. Montreal extends the bracket schedule with rates of 2.0%, 2.5%, 3.5%, and 4.0% on progressively higher portions above the $276,200 provincial base ceiling. The additional tiers significantly increase the tax on luxury residential purchases in Montreal.
- When do I pay the Quebec Welcome Tax?
- The Welcome Tax is not paid at the notary's table on closing day. The municipality sends an invoice (avis de cotisation) after the transfer is registered at the Quebec land registry. The invoice typically arrives within weeks to months of closing, with payment due within 30 days.
- How is the Welcome Tax calculated on a $600,000 Montreal property?
- On $600,000 in Montreal: 0.5% x $55,200 = $276; 1.0% x $221,000 = $2,210; 1.5% x $276,100 = $4,142; 2.0% x $47,700 = $954. Total = $7,582.
- Is the Welcome Tax the same everywhere in Quebec?
- The provincial base brackets (0.5%/1.0%/1.5%) apply province-wide. Municipalities can add higher tiers above the provincial base. Montreal, Laval, Quebec City, and Longueuil have enacted extended tiers. Most smaller municipalities apply the base schedule only. Confirm with the specific municipality.
- Is there a first-time buyer exemption from Quebec's Welcome Tax?
- There is no province-wide first-time buyer exemption from the Quebec Welcome Tax. A few municipalities have introduced locally funded incentive programs for first-time buyers, but these are rare, municipally funded, and vary in eligibility rules.
- What is the Welcome Tax on a $300,000 Quebec property?
- On $300,000 outside Montreal: 0.5% x $55,200 = $276; 1.0% x $221,000 = $2,210; 1.5% x $23,800 = $357. Total = $2,843.
- How does Quebec's Welcome Tax compare to Ontario's LTT?
- On a $500,000 purchase: Quebec (outside Montreal) Welcome Tax = $5,843; Ontario LTT = $6,475. BC PTT = $8,000. Alberta = $0. Quebec's rate is slightly lower than Ontario's at this price point. Montreal adds higher tiers that can make the Welcome Tax exceed Ontario's LTT at prices above $600,000.
- What is the Welcome Tax calculated on?
- The tax base is the greater of: the purchase price, the value stated in the transfer deed, or the municipal assessment value (since 2023, at a 1.00 multiplier). For standard arm's-length residential sales, the purchase price is almost always the highest value and serves as the tax base.
- Are there exemptions from the Quebec Welcome Tax?
- Yes. Transfers between spouses (where one assumes the other's mortgage), transfers to wholly-owned corporations under certain conditions, transfers to recognized religious organizations, and some agricultural land transfers qualify for exemption. There is no general property-type exemption (all residential, commercial, and industrial property is covered).