Land Transfer Tax in Quebec: How the Welcome Tax Works
Every municipality in Quebec is required to charge a land transfer tax — commonly called the welcome tax — whenever a property changes ownership, regardless of whether it's your first purchase. Governed by the Act respecting duties on transfers of immovables, the tax is a one-time municipal charge, and while the province sets base calculation rules, individual cities can adjust rates for higher-value properties, meaning the amount you owe can differ depending on where in Quebec you buy.
How the Welcome Tax Is Calculated Across Quebec
The welcome tax is calculated on progressive brackets applied to whichever is highest: the purchase price, the amount stated in the deed of sale, or the property's municipal assessment. Quebec's base brackets are indexed annually, but the province's standard structure applies roughly 0.5% on the lowest portion of value, 1.0% on the next tier, and 1.5% above that.
Where things diverge is at the higher end. Since municipalities gained the ability to set their own rate for the portion of a property's value above $500,000, cities have taken different approaches. Montreal applies additional brackets reaching up to 2.5% on high-value properties, while other municipalities have set their own rates independently — Brossard's 2025 bylaw, for example, applies 3.0% to any portion of a property's value above $500,000. This means two buyers purchasing similarly priced homes in different Quebec municipalities can owe noticeably different amounts.
When and How You Pay It
The municipality typically mails the welcome tax invoice one to three months after your notarial deed of sale is signed, and you generally have 30 days from that invoice date to pay it in full. Interest applies to any balance left unpaid after the deadline, and if the property is owned jointly, all owners are jointly responsible for the amount.
Because the invoice arrives well after closing, it's a cost that's easy to forget to budget for — many first-time buyers set aside funds for their down payment and notary fees but overlook that the welcome tax bill is still coming separately. Some municipalities, such as Brossard, allow installment payments for larger amounts, but this varies by city and isn't guaranteed everywhere.
Who Is Exempt From the Welcome Tax
Quebec's exemptions are narrow and mostly limited to transfers within the immediate family or specific legal circumstances — simply having owned property before, even in the same municipality, does not qualify you for an exemption.
| Situation | Exemption Applies? | Notes |
|---|---|---|
| Transfer between spouses or civil union partners | Yes | No time limit on the relationship |
| Transfer between common-law partners | Yes | Must have cohabited at least 12 consecutive months |
| Direct family line (parents, children, grandparents) | Yes | Does not extend to siblings or other extended family |
| Transfer by inheritance | Generally yes | Treated as an estate transfer, not a sale |
| Property valued under $5,000 | Yes | Uncommon in practice; mainly land-boundary corrections |
| Transfer to a corporation you control | Conditionally | Requires retaining at least 90% of voting rights after the transfer |
Even when a transfer qualifies for an exemption, some municipalities still charge a small administrative fee, capped at $200, to cover the cost of updating the property assessment roll.
Beyond Exemptions: Rebates and Credits That Can Offset It
An exemption and a rebate work differently, and it's worth understanding the distinction before assuming a program applies to you. An exemption means the municipality never charges the tax in the first place. A rebate or refundable credit means you pay the full amount first, then recover some or all of it afterward.
- Quebec's provincial first-time buyer credit (2026): A refundable tax credit claimed through Revenu Québec after paying the welcome tax, phasing out for properties above $750,000 and eliminated above $1,000,000. We cover the mechanics of this program in detail in our Montreal first-time buyer guide.
- Municipal rebate programs: Some cities, including Montreal, run their own home ownership assistance programs that can refund welcome tax paid by qualifying buyers, separate from the provincial credit.
- Federal Home Buyers' Tax Credit: A separate $10,000 non-refundable federal credit, unrelated to the welcome tax itself, but often claimed alongside it in the same purchase.
This is general information, not legal or tax advice. Welcome tax rates, thresholds, and rebate programs are set independently by each municipality and by Revenu Québec, and can change — confirm current figures with your notary or the municipality where you're buying before finalizing a purchase.
Frequently Asked Questions
Does every Quebec municipality charge the welcome tax the same way?
The base calculation method is consistent across the province, but municipalities can set their own rate for the portion of a property's value above $500,000. This means cities like Montreal and Brossard apply higher brackets on expensive properties than the provincial standard, so the exact amount owed can vary by city.
When do I have to pay the welcome tax?
The municipality typically sends an invoice one to three months after your notarial deed is signed, and payment is generally due within 30 days of that invoice. Interest applies if the deadline is missed.
Is there a welcome tax exemption for family transfers?
Yes, but it's limited. Transfers between spouses, civil union partners, common-law partners who've cohabited 12+ months, and direct family lines (parents, children, grandparents) generally qualify, but the exemption does not extend to siblings or more distant relatives.
Do I still pay anything if I qualify for an exemption?
Possibly a small amount. Some municipalities charge an administrative fee of up to $200 on exempt transfers to cover updating the property assessment roll, even though the welcome tax itself isn't charged.
Is the welcome tax the same as a first-time buyer rebate?
No. The welcome tax is the base charge every buyer generally owes, while first-time buyer programs are separate rebates or refundable credits that reduce or refund what was paid, subject to their own eligibility rules and price thresholds.
Plan Your Full Closing Costs
The welcome tax is one of several closing costs to budget for in Quebec. If you're a first-time buyer, our Montreal first-time buyer guide covers the current rebate programs in detail, and our mortgage calculator can help you plan your full budget.