Quebec Welcome Tax Explained (2026 Brackets, Montréal Rates, When It's Billed)
Quebec’s welcome tax (droits de mutation) is $8,611 on a $700,000 home outside Montréal and $9,349 in Montréal, billed two to three months after closing.
Quebec's land transfer duty, droits sur les mutations immobilières, universally called the welcome tax, is charged by the municipality on marginal brackets that are indexed every January. For 2026, outside Montréal: 0.5% up to $62,900, 1% up to $315,000, 1.5% up to $500,000. Above $500,000 each municipality sets its own rate (max 3%) by by-law. Montréal uses its own seven-bracket schedule reaching 4% above $3.1 million. A $700,000 home pays $5,611 on the first $500,000 everywhere outside Montréal, plus the local rate on the remaining $200,000, so the total varies by city; in Montréal the same home pays $9,349. Unlike every other province, it is not collected at closing: the city mails the bill two to three months later. Since 2026, first-time buyers get a refundable provincial credit of up to $5,875, phasing out between $750,000 and $1 million.
Figures come from the CostToClose land transfer tax calculator, using the 2026 brackets published by the Quebec government and the Ville de Montréal.
The 2026 brackets
| Portion of the basis | Quebec (outside Montréal) | Montréal |
|---|---|---|
| Up to $62,900 | 0.5% | 0.5% |
| $62,900 to $315,000 | 1.0% | 1.0% |
| $315,000 to $500,000 | 1.5% | 1.5% |
| $500,000 to $552,300 | municipal rate (max 3%) | 1.5% |
| $552,300 to $1,104,700 | municipal rate (max 3%) | 2.0% |
| $1,104,700 to $2,136,500 | municipal rate (max 3%) | 2.5% |
| $2,136,500 to $3,113,000 | municipal rate (max 3%) | 3.5% |
| Above $3,113,000 | municipal rate (max 3%) | 4.0% |
Source: Gouvernement du Québec, droits sur les mutations immobilières, 2026; Ville de Montréal, 2026 schedule. Checked 14 September 2026. The basis is the greatest of the price, the consideration, and the municipal assessment multiplied by the comparative factor, so a home bought below its assessed value is taxed on the assessment.
What the tax is at common prices
| Price | Outside Montréal | Montréal |
|---|---|---|
| $300,000 | $2,686 | $2,686 |
| $500,000 | $5,611 | $5,611 |
| $700,000 | $5,611 + local rate on $200,000 | $9,349 |
| $900,000 | $5,611 + local rate on $400,000 | $13,349 |
| $1,500,000 | $5,611 + local rate on $1,000,000 | $27,326 |
| $2,500,000 | $5,611 + local rate on $2,000,000 | $55,961 |
This example was computed with the CostToClose calculator. Above $500,000 outside Montréal, each municipality sets its own rate (maximum 3%), so the total depends on the city. Ask your notary for the local schedule.
Below $552,300 the two schedules are identical. Montréal's premium grows with price: $738 at $700,000, $20,000 at $2.5 million. Laval, Longueuil, Brossard and the rest of the metropolitan region use the standard schedule; only the Ville de Montréal (its 19 boroughs) uses the higher one.
When and how it is billed
The notary does not collect the welcome tax. The municipality issues an account after the deed is registered, usually 60 to 90 days after closing, payable within 30 days in a single instalment. Buyers who spent every dollar at closing are caught by a bill they had forgotten about. The guided buying flow lists it as "due after closing" for exactly that reason.
First-time buyers: a provincial credit, plus city programs
Since 2026, Quebec offers a refundable welcome-tax credit for first-time buyers: up to $5,875, retroactive to January 1, 2026, phasing out linearly between $750,000 and $1 million. On top of that, Montréal runs a home-ownership assistance program that can refund part of the welcome tax for eligible first-time buyers of new or existing homes with children, with price caps that change annually; Quebec City and Laval have had similar programs. These are municipal grants, not tax rules, and must be applied for.
Worked example from the calculator
$680,000 condo in Montréal's Plateau borough, 10% down:
| Item | Amount |
|---|---|
| Welcome tax (Montréal schedule) | $8,949 |
| Billed | About 2–3 months after closing, by the Ville de Montréal |
| CMHC premium (3.10% of $612,000) | $18,972, added to the mortgage |
| Quebec sales tax on the premium (9%) | $1,707, paid at the notary |
| Notary fees (estimate) | $1,400 |
Same condo in Longueuil: about $8,311 at the 1.5% rate most cities keep above $500,000. Confirm the local schedule with your notary. Reproduce this.
What changes the number
- Montréal vs suburbs: nothing below $552,300, then a growing surcharge.
- Assessment above price: the tax is calculated on the higher figure.
- Indexation: the brackets rise each January with the CPI, so the same price pays slightly less tax each year.
- Exemptions: transfers between spouses, and between parent and child in a direct line, are exempt; a flat $250 "special duty" may apply instead.
Who this covers
This is for a standard resale or new-build residential purchase in Quebec, handled through a notary in the usual way. It doesn't cover exempt family transfers, which follow different rules, or non-residential and multi-unit property, which can be assessed differently.
What this doesn't include
- The actual municipal assessment (évaluation municipale) for a specific property. The tax is calculated on the greater of price or assessment, so the real bill can be higher than the price alone suggests. This page can't look up a specific property's assessed value.
- The exact eligibility and refund amounts for Montréal's (or another city's) home-ownership assistance program, which change annually and aren't a tax rule so much as a grant you have to apply for.
- What happens if you dispute the municipal assessment used as the tax basis. That's a separate municipal process.
- Interest or penalties if the 30-day payment deadline after the bill arrives is missed.
Questions worth asking a professional
- Ask your notary for the property's actual municipal assessment before closing. Since the tax is based on the greater of price or assessment, this tells you which figure will actually apply.
- If buying in Montréal or another program city, ask about home-ownership assistance eligibility and how to apply before the welcome-tax bill arrives.
- Even though it's not due at the notary, ask them to confirm the exact expected welcome-tax amount so you can set the cash aside rather than be caught short two to three months later.
- If a family transfer might qualify for a spousal or parent-child exemption, confirm the paperwork with your notary before the deed registers.
Frequently asked questions
How much is the welcome tax on a $500,000 home in Quebec?
$5,611 in 2026, anywhere in Quebec including Montréal: 0.5% on the first $62,900, 1% to $315,000, and 1.5% on the rest.
When do you pay the welcome tax in Quebec?
After closing. The municipality sends a bill roughly two to three months after the deed is registered, payable within 30 days.
Is there a first-time buyer exemption for the welcome tax?
Yes, since 2026. Quebec offers a refundable provincial credit of up to $5,875, phasing out between $750,000 and $1 million. Montréal and a few other cities also offer partial refunds through separate home-ownership programs with their own eligibility conditions.
Why is Montréal's welcome tax higher?
Montréal is permitted to set higher rates on the portion of value above $552,300, rising to 4% above $3.1 million. Other municipalities are capped at 1.5%.
Is the welcome tax calculated on price or assessment?
On the greater of the two (assessment adjusted by the comparative factor). If you buy below assessed value, you pay tax on the assessed value.
Sources
- Gouvernement du Québec, Droits sur les mutations immobilières — 2026 brackets — checked 14 Sept 2026
- Ville de Montréal, Comment sont calculés les droits sur les mutations immobilières (2026) — checked 14 Sept 2026
- Act respecting duties on transfers of immovables (CQLR c. D-15.1) — checked 14 Sept 2026
- Revenu Québec, tax on insurance premiums (9%) — checked 14 Sept 2026
This guide is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.