The "welcome tax" is officially called property transfer duties (droits de mutation immobilière). Anyone who buys a property in Quebec pays it to their municipality, once, after signing at the notary. It isn't a flat percentage: like income tax, it's calculated bracket by bracket — and Montreal applies higher brackets than the provincial base scale.
Welcome tax calculator
ToolProperty transfer duties (droits de mutation), calculated bracket by bracket.
| Bracket | Rate | Amount taxed | Tax |
|---|
2026 scales in force on October 9, 2026. Outside Montreal, some municipalities charge higher rates above $500,000 — check with your city. The municipality sends the bill after the signing. Quebec's credit (maximum $5,875) is paid once the tax has been paid in full — see the conditions.
What amount is the welcome tax calculated on?
The tax base is the highest of these three amounts:
- the price paid for the property (excluding sales taxes);
- the consideration stated in the deed of sale;
- the value on the municipal assessment roll, multiplied by the municipality's comparative factor.
For 2026, Montreal's comparative factor is 1.00, so the assessed value is used as is. In most purchases, the price paid is the base. But if you buy below the municipal assessment, the assessment is what counts — the calculator above lets you enter it.
The 2026 welcome tax brackets: Montreal and the rest of Quebec
Each rate applies only to the portion of the base that falls within its bracket. The thresholds are indexed every year.
| Bracket of the tax base | Rate |
|---|---|
| Up to $62,900 | 0.5% |
| $62,900 to $315,000 | 1% |
| $315,000 to $552,300 | 1.5% |
| $552,300 to $1,104,700 | 2% |
| $1,104,700 to $2,136,500 | 2.5% |
| $2,136,500 to $3,113,000 | 3.5% |
| Over $3,113,000 | 4% |
| Bracket of the tax base | Rate |
|---|---|
| Up to $62,900 | 0.5% |
| $62,900 to $315,000 | 1% |
| Over $315,000 | 1.5% |
The base scale is a minimum. Outside Montreal, a municipality can apply a higher rate to the portion above $500,000: check your city's rates before you set your budget.
Step-by-step example: $700,000 in Montreal
This is the example the City of Montreal itself gives. Here's the calculation, bracket by bracket:
| Bracket | Amount taxed | Rate | Tax |
|---|---|---|---|
| Up to $62,900 | $62,900 | 0.5% | $314.50 |
| $62,900 to $315,000 | $252,100 | 1% | $2,521.00 |
| $315,000 to $552,300 | $237,300 | 1.5% | $3,559.50 |
| $552,300 to $1,104,700 | $147,700 | 2% | $2,954.00 |
| Total | $700,000 | 1.34% | $9,349 |
The effective rate (1.34%) is well below the top bracket's rate: only the portion above $552,300 is taxed at 2%.
Worked examples: Montreal vs the base scale
| Price (tax base) | Montreal | Base scale | Difference |
|---|---|---|---|
| $300,000 | $2,686 | $2,686 | — |
| $450,000 | $4,861 | $4,861 | — |
| $600,000 | $7,349 | $7,111 | + $238 |
| $800,000 | $11,349 | $10,111 | + $1,238 |
| $1,200,000 | $19,826 | $16,111 | + $3,715 |
Up to $552,300, both scales give the same result. After that the gap widens quickly, which weighs heavily on a purchase above a million dollars in Montreal.
When the bill arrives, and how to get part of it back
The notary doesn't collect the welcome tax. The municipality sends you the bill, usually a few weeks after closing, and it's typically payable within 30 days. So set this amount aside: it isn't part of what you hand over to the notary, but it comes due shortly after.
If you're a first-time buyer, Quebec's refundable access-to-property tax credit reimburses the first $5,000 of welcome tax paid in full, plus 25% of the next $3,500, up to $5,875. One key condition: the tax must have been paid in full. At $700,000 in Montreal, the credit would reach $5,875. See eligibility and the advance payment →
To see the welcome tax alongside every other fee, use the total closing costs calculator.
Official sources: City of Montreal — how property transfer duties are calculated (in French), Québec.ca — property transfer duties (in French), Revenu Québec — access-to-property tax credit (in French).
Frequently asked questions
How do you calculate the welcome tax in Montreal?
You apply each rate in Montreal's scale to the portion of the tax base that falls within its bracket, then add the results. For example, a $700,000 tax base gives $9,349 in 2026.
When do you have to pay the welcome tax?
The municipality sends the bill after you sign at the notary, usually a few weeks later. It is typically payable within 30 days.
Do first-time buyers pay the welcome tax in Quebec?
Yes, they pay it like any buyer. For a home acquired since 2026, they can then get up to $5,875 back through Quebec's refundable access-to-property tax credit, once the tax has been paid in full.
