Calculate the land transfer duties (welcome tax) on your home purchase in Quebec. This calculator covers both standard Quebec rates and Montreal’s higher tax brackets. In Quebec, land transfer duties are commonly referred to as the “taxe de bienvenue” (welcome tax) and are collected at the municipal level.
Quebec Land Transfer Tax Rates (Welcome Tax)
The Quebec land transfer duties are calculated on a progressive tiered system. The base amount used in the calculation is the greater of the purchase price, the amount on the deed of sale, or the municipal assessment roll value multiplied by a comparative factor.
Standard Quebec Rates
| Property Value | Marginal Tax Rate |
|---|---|
| Up to $58,900 | 0.5% |
| $58,901 to $294,600 | 1.0% |
| Over $294,600 | 1.5% |
Montreal Rates
Montreal has additional higher brackets for properties over $534,500:
| Property Value | Marginal Tax Rate |
|---|---|
| Up to $58,900 | 0.5% |
| $58,901 to $294,600 | 1.0% |
| $294,601 to $534,500 | 1.5% |
| $534,501 to $1,069,000 | 2.0% |
| $1,069,001 to $2,136,500 | 2.5% |
| Over $2,136,500 | 3.0% |
How to Calculate Quebec Welcome Tax
Let’s calculate the land transfer duties on a $400,000 home outside of Montreal.
The first $58,900 is taxed at 0.5%:
- $58,900 x 0.5% = $294.50
$58,901 to $294,600 is taxed at 1.0%:
- $235,700 x 1.0% = $2,357
$294,601 to $400,000 is taxed at 1.5%:
- $105,400 x 1.5% = $1,581
Total Quebec Transfer Duties: $294.50 + $2,357 + $1,581 = $4,232.50
When is the Welcome Tax Due?
The welcome tax is due within 30 days of receiving the tax notice from the municipality. This notice is typically sent shortly after the property transfer is registered. Unlike other provinces where the tax is paid at closing, Quebec municipalities bill you directly after the sale.
First-Time Homebuyer Programs in Quebec
Quebec does not offer a first-time homebuyer exemption for land transfer duties. However, first-time buyers may benefit from the federal Home Buyers’ Plan (HBP), which allows you to withdraw up to $60,000 from your RRSP tax-free to purchase your first home.
Other Closing Costs in Quebec
The welcome tax is one of the larger closing costs when purchasing a home in Quebec, but buyers should also budget for notary fees (Quebec uses notaries rather than lawyers for real estate transactions), title insurance, home inspection fees, property tax adjustments, and mortgage default insurance if your down payment is less than 20%. Unlike other provinces, the welcome tax in Quebec is billed separately after closing rather than paid at closing. Use our closing costs calculator to estimate every expense involved in buying a Quebec home, and our mortgage calculator to plan your monthly payments.
Land Transfer Tax in Other Provinces
Land transfer tax rates and rules vary across Canada. See our Land Transfer Tax Calculator for a complete comparison of rates in all provinces and territories.