How the Welcome Tax Is Calculated
Comment est calculée la taxe de bienvenue
The taxe de bienvenue uses a marginal bracket system — the same principle used for income tax. Only the portion of the price that falls within each bracket is taxed at that bracket's rate. Crossing into a higher bracket never raises the rate on the entire amount, only on the slice above the threshold.
For 2026, the standard Quebec provincial brackets are:
| Bracket / Tranche | Rate / Taux |
|---|---|
| First $62,900 | 0.5% |
| $62,900.01 to $315,000 | 1.0% |
| Above $315,000 | 1.5% |
Worked example: $500,000 purchase in a standard municipality
| Bracket | Amount Taxed | Rate | Tax |
|---|---|---|---|
| $0 – $62,900 | $62,900 | 0.5% | $314.50 |
| $62,900.01 – $315,000 | $252,100 | 1.0% | $2,521.00 |
| $315,000.01 – $500,000 | $185,000 | 1.5% | $2,775.00 |
| Total welcome tax | $5,610.50 | ||
The entire $500,000 purchase is consumed by the first three brackets. The effective rate on this purchase is 1.12%. Use the calculator above to see the breakdown for any price and city. For additional worked examples, see the complete guide to the taxe de bienvenue.
Welcome Tax by Municipality
Taxe de bienvenue selon la municipalité
Quebec sets minimum transfer-duty brackets, but many municipalities apply higher rates (up to 3%, or more in Montreal) on portions above $500,000. Always select your specific municipality where available.
Montreal uses slightly wider lower brackets and adds luxury tiers: 2.0% up to $1,104,700; 2.5% up to $2,136,500; 3.5% up to $3,113,000; and 4.0% above $3,113,000. Laval, Quebec City, Longueuil, and Brossard each apply their own higher rates on portions above $500,000 — select your city in the calculator for the applicable 2026 schedule.
| Municipality | Welcome Tax on $600,000 |
|---|---|
| Other / provincial minimum | $7,110.50 |
| Montreal | $7,349.00 |
| Longueuil | $7,110.50 |
| Quebec City | $8,110.50 |
| Brossard | $8,610.50 |
| Laval | $8,610.50 |
For a full bracket table and step-by-step examples for high-value Montreal properties, see the Montreal taxe de bienvenue guide.
When and How You Pay
Quand et comment payer la taxe
The welcome tax is not collected at closing. After the notary registers the deed, the municipality is notified and sends you a payment bill.
The welcome tax is due within 30 days of the municipality sending the bill. Some municipalities allow payment in installments. Timing and terms vary — confirm with your municipality or notary.
Because the bill arrives after closing — once the savings account has already been committed to the down payment and other costs — many buyers are caught off guard. Plan for it before you close, not after.
What the Tax Is Based On
Sur quelle valeur est calculée la taxe
The tax is calculated on the highest of: the price paid, the price stated in the deed, and the property's market value at transfer. Market value for this purpose is the municipal roll value multiplied by the municipality's comparative factor for the year.
The exception matters when you buy below assessed value — for example, purchasing from a family member at a discount, or buying before the municipal roll has been updated to reflect recent market increases. In those cases, the tax may be calculated on the higher municipal figure, regardless of what you actually paid.
Exemptions and Special Cases
Exemptions et cas particuliers
Quebec law provides a limited number of exemptions from the taxe de bienvenue. These are specific and not broadly available — the majority of buyers will not qualify for any of them.
- Transfers between married or civil-union spouses: A transfer between spouses — including on separation or divorce — is generally exempt. Common-law (de facto) partners do not automatically qualify.
- Transfers to or from a direct-line relative: A parent-to-child or child-to-parent transfer may be exempt when the consideration does not exceed the greater of the sale price and municipal evaluation. The relationship must be first-degree.
- Transfers involving closely related legal entities: When the buyer is a corporation or partnership legally related to the seller under Quebec law, an exemption may apply. These situations are complex and require a notary's review.
- Certain agricultural land transfers: Transfers of farm land to qualifying family members under the Act respecting the preservation of agricultural land and farm activities may be exempt.
Montreal first-time buyer assistance: Montreal may offer partial transfer-duty assistance to eligible buyers through its home ownership program. Eligibility depends on buyer profile, property type, price, and program conditions. Confirm current rules with the city.
For a complete breakdown of what first-time buyers can and cannot claim, see Do First-Time Buyers Pay Welcome Tax in Quebec?
How to Budget for the Welcome Tax
Comment prévoir la taxe dans son budget
A practical rule of thumb: budget 1% to 1.5% of the purchase price. At $400,000 expect roughly $4,000. At $700,000, closer to $8,500. The calculator above gives you the exact figure for any price and municipality.
The welcome tax is one of several closing costs that buyers consistently underestimate. The others include:
- Notary fees: typically $1,200 to $2,000 for a standard purchase and mortgage
- Home inspection: $500 to $800
- CMHC mortgage insurance: 2.8% to 4.0% of the insured mortgage if your down payment is under 20%, added to the loan balance
- Property tax and utility adjustments: prepayments owed to the seller at closing
- Moving costs and immediate repairs
For a complete breakdown of every cash outflow a Quebec buyer faces at closing — with real totals at $400K, $600K, and $800K — see the guide below.
Frequently Asked Questions
Questions fréquentes sur la taxe de bienvenue