Short answer: Yes — in most cases, first-time buyers in Quebec pay the taxe de bienvenue in full. There is no provincial exemption for first-time buyers. Montreal has run local rebate programs in the past, but eligibility and availability change. Always confirm the current status with the City of Montreal or your notary.
Quebec Has No Provincial First-Time Buyer Exemption
Il n'existe pas d'exemption provinciale pour les premiers acheteurs
Unlike Ontario, which offers a first-time buyer rebate on its provincial land transfer tax, Quebec provides no similar rebate at the provincial level. Every buyer — whether it's your first property or your tenth — pays the taxe de bienvenue at the same rate. Being a first-time buyer does not reduce your tax obligation under Quebec's provincial rules.
This surprises many buyers who hear about Ontario's program and assume Quebec has something comparable. It does not. Budget for the full tax amount from the start.
Montreal's Rebate Program for First-Time Buyers
Le programme de remboursement de Montréal pour les premiers acheteurs
The City of Montreal has historically offered a rebate on the taxe de bienvenue for eligible first-time buyers purchasing a residential property within the city. Under past iterations of the program, buyers could receive a partial rebate on the welcome tax paid, subject to income and purchase price thresholds.
These programs are administered by the city, not the provincial government, and are subject to annual changes in eligibility criteria, rebate amounts, and availability. A program that existed in one year may be modified, paused, or eliminated in the next. To find out what is currently available:
- Check the City of Montreal's official website (montreal.ca) for the most current program details
- Ask your notary — they handle many Montreal transactions and will know the current status
- Contact the Montreal housing office directly before closing to understand the application process and deadlines
Legal Exemptions That Do Apply
Les exemptions légales existantes
While there is no first-time buyer exemption, certain categories of transfer are exempt from the taxe de bienvenue regardless of buyer status:
- Transfers between spouses who are married or in a civil union, made in connection with a separation or in the ordinary course of their relationship, may be exempt.
- Transfers from a parent to a child (or child to parent) may qualify for a partial exemption in specific circumstances.
- Transfers related to inheritance where a beneficiary takes ownership through an estate may have different treatment depending on the situation.
- Agricultural land transfers to a family member in a farming context may qualify for a full exemption.
These exemptions are narrowly defined. If you believe your situation might qualify, your notary is the right person to advise you — before you sign the deed of sale, not after.
Tips to Reduce Your Welcome Tax
Conseils pour réduire votre taxe de bienvenue
- Know the municipal evaluation. The tax is calculated on the greater of the sale price or the municipal evaluation. If you are buying at or above the assessed value, the sale price applies. If the evaluated value is higher, you will owe tax on the higher figure. Reviewing the municipal evaluation before making an offer helps you understand your exposure.
- Budget from day one. The taxe de bienvenue cannot be rolled into your mortgage. Having it accounted for in your savings target — alongside notary fees, inspection fees, and moving costs — means you won't be scrambling at closing.
- Buy just below a bracket threshold. The tax increases at specific price points. If you are considering two properties at $315,000 and $314,500, the lower price keeps more of the purchase in the 1.0% bracket and less in the 1.5% bracket. On larger purchases the difference is more meaningful.
- Ask about Montreal's rebate before you close. If you are purchasing in Montreal and may qualify for a first-time buyer rebate, ask your notary about the application process at the start of the transaction — not on closing day.
- Ask your notary about exemptions. Even if you are not a first-time buyer, your specific transaction (transfer type, relationship to seller, property type) may qualify for a partial or full exemption. Notaries are required to advise buyers on applicable exemptions — it is worth asking directly.
Calculate Your Welcome Tax Before You Offer
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→ Use the Free CalculatorIs there a first-time buyer exemption from the taxe de bienvenue in Quebec? / Y a-t-il une exemption pour les premiers acheteurs?
No. Quebec's provincial rules do not provide any exemption or rebate specifically for first-time buyers. Every buyer pays the taxe de bienvenue at the same rate. This differs from Ontario, which has a provincial first-time buyer rebate of up to $4,000 on its land transfer tax. In Quebec, you must pay the full amount regardless of whether it is your first purchase.
How do I apply for the Montreal first-time buyer rebate? / Comment demander le remboursement de Montréal pour premiers acheteurs?
The application process for Montreal's rebate programs varies and changes over time. Generally, buyers apply through the City of Montreal's housing department after the deed of sale is signed. Your notary can provide guidance on the current application form and deadlines. The rebate is not automatic — you must apply, and late applications are typically not accepted. Confirm program availability and requirements with the City of Montreal or your notary before closing.
Are there any transfers that are completely exempt from the welcome tax? / Existe-t-il des transferts totalement exempts de la taxe?
Yes. Certain transfers between spouses, agricultural land transfers to family members, and some other specific situations are exempt under Quebec law. The Loi concernant les droits sur les mutations immobilières sets out the full list of exemptions. Your notary will identify applicable exemptions for your transaction — ask about this explicitly if you think your situation may qualify.