What the welcome tax actually is
The welcome tax, officially the land transfer duties (droits sur les mutations immobilières), is a one-time tax that every buyer of a property in Quebec must pay to the municipality after the purchase. It is separate from your annual municipal and school taxes, it cannot be rolled into your mortgage, and the bill lands a few weeks after you move in. On a typical single-family home it runs to several thousand dollars.
The name comes from Bienvenue, the minister behind the law, not from any warm greeting, but the result is the same: a welcome bill at the worst possible moment, right after the move, the renovations and the furniture. Since it hits every transaction, it belongs in your purchase budget from day one, next to the notary, the inspection and the down payment you built through your FHSA and HBP.
The 2026 bracket calculation (and the trap in the base)
The tax base is the HIGHER of the price you paid or the property's market value, meaning the municipal assessment multiplied by the comparative factor. The 2026 brackets outside Montreal: 0.5% on the first $62,900, 1% from $62,900 to $315,000, and 1.5% above that. Municipalities can raise the brackets above $500,000 up to 3%, and Montreal applies its own higher schedule on the upper brackets, reaching 3% on the portion above $1,000,000.
The trap is the base. If you negotiate a great deal and pay less than the property's uniformized municipal value, the municipality taxes you on the HIGHER number anyway. That is one more reason the municipal assessment matters to buyers, even though it is never a selling price. The comparative factor converts the assessment into an estimate of current market value; the tax office applies it automatically, so a bargain purchase does not shrink the welcome tax.
Worked examples, 2026 rates
On a $450,000 home outside Montreal: 0.5% of $62,900 plus 1% of the next $252,100 plus 1.5% of the remaining $135,000, for a bill of roughly $4,860. On the island of Montreal the upper brackets are steeper, so the same price produces a slightly higher bill, and a $750,000 purchase lands over $10,000. A first-time buyer, however, gets most or all of this back since 2026.
| Purchase price | Approx. tax outside Montreal | After first-time buyer refund |
|---|---|---|
| $350,000 | ~$3,360 | $0 |
| $450,000 | ~$4,860 | $0 |
| $550,000 | ~$6,360 (more if the city raised upper brackets) | ~$1,000 or less |
| $750,000 | ~$9,360 and up | Several thousand less |
These are orders of magnitude at the base rates; your city may charge more above $500,000. For the exact figure on your target property, our welcome tax calculator applies the 2026 Montreal and non-Montreal schedules and the refund in one shot.
The $5,875 refund most first-time buyers miss
Since 2026, eligible first-time buyers in Quebec are refunded 100% of the first $5,000 of welcome tax plus 25% of anything above that, to a maximum of $5,875. It applies to properties under $1,000,000 and is retroactive to January 1, 2026. Quebec estimates about 38,000 first-time buyers will benefit each year. Below roughly $460,000 outside Montreal, the welcome tax is effectively erased.
If you bought early in 2026, before the announcement, you qualify too: keep your transfer duties bill carefully. On a $450,000 property that is more than $4,800 coming back, enough to furnish the living room or repay a year of HBP ahead of schedule. We now build this refund into the total cost of purchase for every first-time buyer we work with, alongside the FHSA and HBP down payment strategy.
The classic exemptions
Some transfers escape the welcome tax entirely: transfers between spouses (including certain post-separation transfers), transfers in the direct line such as parent to child or grandparent to grandchild, and certain corporate reorganizations. An ordinary purchase from an unrelated seller is virtually never exempt. When an exemption might apply, the notary confirms it and records it in the deed.
Do not confuse an exemption with the refund: the exemption means no tax at all in specific family or corporate situations; the refund means a first-time buyer pays and then gets most of it back. If you are buying with a parent or transferring within the family, the exemption question is worth five minutes with the notary before you sign anything.
When and how you actually pay
Nothing is collected at the notary's office. The municipality issues a transfer duties bill after the deed is registered, typically a few weeks to a few months later, and payment is generally due about 30 days after billing. It cannot be financed inside your mortgage, so it has to sit in cash in your closing budget.
Plan it with the rest of your closing costs: notary fees, inspection, adjustments, moving. Buyers who blueprint the full entry cost, welcome tax included, avoid the classic post-move cash crunch. Our calculator gives the number, and the team walks every first-time buyer through the complete budget before the offer, not after.
More guides in English
Buying or selling in Quebec means dealing with rules that are written in French first. These guides cover the same rules, in English, with the French names you will actually see on the documents.
- CELIAPP in English: the FHSA guide
Contribution limits, Schedule 15, tax-free withdrawals and FHSA vs HBP. - The promise to purchase explained
Why it is binding, the usual conditions and what you cannot remove. - New build vs resale in Quebec
What changed on the GST in 2026, and the real cost gap between the two.
Our team works in French and in English: call 438 807 3653 and ask for an English-speaking broker.
Buying in Quebec? Get the full number before you offer
In fifteen minutes we map your complete entry cost: welcome tax with the refund, notary, inspection, adjustments, and the FHSA and HBP strategy for your down payment. In English or in French, no obligation. That is how we became the number 1 team at RE/MAX Platine.
Frequently asked questions about the welcome tax
How is the welcome tax calculated in Quebec in 2026?
The tax base is the HIGHER of the price you paid or the property's market value (the municipal assessment multiplied by the comparative factor). Outside Montreal, the 2026 brackets are 0.5% on the first $62,900, 1% from $62,900 to $315,000 and 1.5% above that; municipalities may raise the brackets above $500,000 up to 3%. Montreal applies its own higher schedule on upper brackets, going up to 3% on the portion above $1,000,000. The bill arrives from the municipality a few weeks after the notary registers the sale.
How much is the first-time buyer refund on the welcome tax?
Since 2026, eligible first-time buyers in Quebec get back 100% of the first $5,000 of welcome tax plus 25% of the excess, up to a maximum of $5,875. It applies to properties under $1,000,000 and is retroactive to January 1, 2026. In practice, below roughly $460,000 outside Montreal the tax is fully erased; on a $450,000 home, more than $4,800 comes back. Keep your transfer duties bill: it is your proof for the refund.
Who is exempt from paying the welcome tax?
The classic exemptions cover certain transfers rather than ordinary purchases: transfers between spouses (including following a separation, under conditions), transfers in the direct line such as parent to child, and some corporate reorganizations. A regular purchase from a stranger is virtually never exempt. If you think an exemption applies to your situation, confirm it with the notary before counting on it, since the municipality applies the rules strictly.
When do I have to pay the welcome tax?
You do not pay it at the notary's office. The municipality mails you a transfer duties bill, usually a few weeks to a few months after the deed of sale is registered, and payment is generally due about 30 days after the bill is issued. Budget for it at the worst possible time: right after the move, the renovations and the furniture. Our welcome tax calculator gives you the exact amount, refund included, so nothing takes you by surprise.
General information as of July 2026. 2026 transfer duty brackets under the Act respecting duties on transfers of immovables, indexed annually; Montreal applies its own by-law on upper brackets, and municipalities may set higher rates above $500,000. First-time buyer refund (100% of the first $5,000 of duties plus 25% of the excess, maximum $5,875, properties under $1,000,000, retroactive to January 1, 2026) as announced by the Quebec government. Confirm eligibility and exact amounts with your notary and municipality. Une version française complète est disponible: la taxe de bienvenue au Québec.