Quebec Land Transfer Tax: Rates, Montreal Brackets, and Exemptions

The Quebec land transfer tax, known as the welcome tax or taxe de bienvenue, is a one-time duty charged by your municipality whenever real estate changes hands. For 2026, the provincial brackets are 0.5% on the first $62,900 of value, 1% on the portion up to $315,000, and 1.5% on anything above that.¹ Montreal layers additional brackets on top for higher-priced properties, and a new refundable credit for first-time buyers took effect January 1, 2026.

How the Taxable Amount Is Calculated

The tax applies to a single figure called the basis of imposition, which is the highest of three numbers: the price you actually paid, the amount stated in the notarized deed of sale, and the municipal assessment value adjusted by a comparative factor.²

The comparative factor bridges the gap between the assessment roll and current market value, and it changes each year and by municipality. Montreal’s factor for 2026 is 1.00, so the roll value equals market value there. Other cities may sit above or below 1.00 depending on how recently their roll was updated. Your assessed value appears on the annual municipal tax bill.

The brackets are marginal, meaning each rate applies only to the slice of value inside that bracket, not to the full price. On a $400,000 home outside Montreal, that works out to $314.50 on the first $62,900, plus $2,521 on the next $252,100, plus $1,275 on the remaining $85,000, for a total of $4,110.50.¹

Montreal’s Additional Brackets

The Act lets any municipality charge more than 1.5% on value above $500,000, up to a ceiling of 3%. Montreal is the sole exception to that cap and has adopted a steeper schedule.¹ As of January 1, 2026, Montreal’s rates are:²

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%

If you’re buying elsewhere in the province, ask the local tax office whether a surcharge by-law is in force. Any surcharge outside Montreal is still capped at 3%.

First-Time Home Buyer Credit

Beginning retroactively from January 1, 2026, Quebec offers a refundable tax credit that reimburses part of the welcome tax for first-time buyers. Eligible buyers get a full rebate on the first $5,000 of duties, plus 25% of any remaining duties, up to a combined credit of $875.³

To qualify, you cannot have owned a home in the past four years. If you’re buying with a partner and either of you owned property within that window, neither of you qualifies. The credit phases down for properties valued above $750,000 and disappears at $1,000,000.

The rebate is claimed through your provincial income tax return, not netted off the municipal bill. You pay the full welcome tax when the invoice arrives and recover the credit at tax time.³

Transfers That Are Fully Exempt

The Act removes the tax entirely for several categories of transfer. The notary handling your deed is responsible for including the correct declaration at the Land Registry to claim any exemption.⁴

Family and Spousal Transfers

Transfers between direct ascendants and descendants are exempt, so a parent can transfer property to a child, or a grandparent to a grandchild, without triggering the tax. Transfers between married spouses and civil union partners are exempt, and the exemption extends to certain in-law configurations, such as a parent transferring to a child’s spouse.⁴

One trap: if you received a property from a descendant and try to transfer it back to any descendant within two years, the exemption doesn’t apply. You have to have held the property for at least two years after acquiring it from that descendant.¹

De Facto Spouses and Separations

De facto (common-law) spouses qualify for the same exemption as married couples if they have lived together at least 12 months or share a child. If the relationship ends, transfers between former de facto spouses remain exempt when completed within 12 months of the date they started living apart. Transfers also qualify if completed within 30 days of a signed mediation summary, a homologated mediation agreement, or a final court judgment on the property.⁴

Low-Value and Other Transfers

Any transfer where the basis of imposition is under $5,000 is exempt, which covers nominal transfers and corrective deeds.¹ Other exemptions cover transfers to public bodies, between registered charities, agricultural operations registered under the buyer’s name, and lenders taking property back to extinguish a secured debt.⁴

Transfers Involving a Corporation or Trust

Transfers between individuals and closely held corporations can qualify, but the rules are strict. When individuals transfer property to a corporation, the group must collectively hold shares carrying at least 90% of the voting rights immediately after the transfer, and each person’s share must match their proportional interest in the property beforehand. Those conditions have to be maintained for 24 months after the transfer; if they break, the transferee must notify the municipality and the full duty becomes payable.⁵ The same 24-month rule runs in reverse for corporation-to-shareholder transfers. Transfers to a personal trust can also be exempt when the trust benefits the transferor or someone covered by the family exemption.⁴

When the Bill Arrives

The welcome tax is not paid at closing. After your deed is registered at the Land Registry, the municipality processes the filing and mails an invoice to the new owner, sometimes weeks and sometimes months later depending on the local backlog. Once the bill goes out, payment is due on the 31st day after it was sent.⁶

Miss that date and interest accrues at the municipality’s overdue property tax rate, which varies by city. Because the invoice can land long after you’ve paid your other closing costs, run your purchase price through the brackets above and set the money aside before you close.

1
LégisQuébec. D-15.1 – Act Respecting Duties on Transfers of Immovables
2
Ville de Montréal. How Property Transfer Duties Are Calculated
3
CBC. Quebec to Reimburse Welcome Tax for First-Time Homebuyers
4
CanLII. Act Respecting Duties on Transfers of Immovables, CQLR c D-15.1
5
Ministère des Finances Québec. Changes to Certain Exemptions from the Payment of Transfer Duties
6
LégisQuébec. D-15.1 – Act Respecting Duties on Transfers of Immovables