Buying a home in Quebec? There’s one bill a lot of first-time buyers forget to budget for: the welcome tax. Its official name is land transfer tax — in French, droits de mutation immobilière — and it’s a tax every buyer pays to their municipality. This calculator estimates what you’ll owe, including Montréal’s higher rates.
Let’s clear up the name right away, because it confuses everyone: the “welcome tax” has nothing to do with being welcomed. It’s named after Jean Bienvenue, the Quebec minister who introduced it in the 1970s — Bienvenue happens to mean “welcome” in French, so the nickname stuck. It’s a family name, not a gift. Let’s walk through it in plain language.
Estimates only. Rates shown are current as of June 2026. The exact amount depends on your price, your municipality, and your property’s assessment — always confirm the final number with your municipality or your notary before you commit.
What is Quebec’s welcome tax?
When a property changes hands in Quebec, the municipality where it’s located charges land transfer tax — known to everyone as the taxe de bienvenue. Think of it as the cost of officially transferring ownership into your name. Everyone pays it; there’s no way around it for an ordinary purchase between a buyer and a seller.
The tax is marginal, which sounds technical but is actually friendly. It works like income tax brackets: each slice of the amount is taxed at its own rate, not the whole amount at the top rate. In municipalities that use Quebec’s base schedule, the 2026 rates are:
- 0.5% on the first $62,900
- 1.0% on the portion from $62,900 to $315,000
- 1.5% on the portion above $315,000
These thresholds are indexed every year to Quebec’s consumer price index, so they creep up a little from one year to the next.
Here’s a detail that surprises a lot of people: the tax isn’t always calculated on the price you paid. It applies to the highest of three amounts — the agreed sale price, the amount written in the notarized deed, or the municipal assessment value multiplied by that year’s comparative factor. Most of the time the purchase price wins, but not always. If the property’s municipal assessment is higher than what you paid, that’s the figure the tax is based on.
Montréal’s higher rates
Here’s the twist that catches Montréal buyers off guard: Montréal has its own schedule, higher than the rest of Quebec’s.
For the first slices, Montréal follows the base schedule (0.5%, then 1.0%). But starting at $315,000, the city adds its own brackets that climb much higher. For 2026, after the 1.0% up to $315,000, Montréal charges 1.5% up to $552,300, then 2.0% up to $1,104,700 — and it keeps climbing from there, through 2.5%, 3.5%, and up to 4.0% on properties above $3,113,000.
For most buyers, the part that actually matters is that 2.0% bracket between $552,300 and just over $1M, where the rest of Quebec would still be at 1.5%. On a mid-priced Montréal home, that works out to a few hundred dollars more than in a base-rate town. The calculator applies the right schedule automatically depending on whether you’re buying in Montréal or elsewhere — nothing to memorize.
Worth knowing: other municipalities can add a higher rate too, above $500,000. The law caps that rate at 3% (except for Montréal, which can go higher). Laval, for example, charges 3% above $500,000. This calculator uses the base schedule for “the rest of Quebec” — so if your city has passed its own bylaw, check its schedule.
When and how you pay it
This is where Quebec differs sharply from Ontario, and it’s crucial for your budget: you do not pay the welcome tax at closing in front of the notary.
Unlike your down payment and your notary fees, which are settled on the day of the transaction, land transfer tax comes later. The municipality sends you a separate bill, usually 3 to 6 months after the purchase — sometimes a little longer. Once you receive it, it’s payable in a single payment, within 30 days of being sent.
Two important consequences:
- It can’t be financed into your mortgage. You need to set this cash aside separately.
- The delay is a classic trap. Many new owners, relieved to have made it through the purchase, spend down their cash… then the bill lands a few months later. Set the money aside the moment you buy, and forget about it until the envelope arrives.
How to use this calculator
It takes about thirty seconds:
- Enter the purchase price of the home you’re considering.
- Tell it whether the home is in Montréal — this decides which schedule applies.
You’ll immediately see an estimate of your welcome tax: the amount your municipality will bill you, worked out bracket by bracket. It’s the simplest way to turn “wait, how much is this going to cost me?” into a concrete number you can plan around — well before the bill shows up in your mailbox.
Example: a $700,000 home in Montréal
Let’s make it concrete with a $700,000 home bought in Montréal. Here’s the calculation, bracket by bracket, using Montréal’s schedule:
- 0.5% × $62,900 = $314.50
- 1.0% × $252,100 = $2,521
- 1.5% × $237,300 = $3,559.50
- 2.0% × $147,700 = $2,954
- Total: $9,349
That’s exactly the figure the City of Montréal publishes in its own 2026 example.
Now compare the same $700,000 home in a base-rate municipality elsewhere in Quebec. Because the portion above $315,000 stays at 1.5% there (instead of jumping to 2.0% above $552,300), the bill drops to about $8,611. The difference — a few hundred dollars — comes entirely from that higher Montréal bracket. A good reminder that where you buy affects the bill as much as the price itself.
What this calculator doesn’t include
Not covered here:
- Other municipalities’ surcharges. Cities like Laval may charge a higher rate above $500,000; this tool uses the base schedule elsewhere.
- The assessment-value basis. Uses your entered price, but the tax is on the highest of price, deed amount, or municipal assessment.
- Home-ownership assistance programs. Montréal’s program is a separate grant, not a discount on the welcome tax — not computed here.
Frequently asked questions
Why is it called the “welcome tax”?
Because of Jean Bienvenue, the minister who steered the land transfer tax law through in the 1970s. Bienvenue means “welcome” in French, so the nickname stuck — but it has nothing to do with being welcomed or getting a gift. It’s simply a family name.
Do I pay the welcome tax at the notary’s office?
No. Unlike your down payment and notary fees, the welcome tax is not paid at closing. The municipality sends you a separate bill, usually 3 to 6 months after the purchase, payable within 30 days of being sent. Set the money aside in advance.
Can I add the welcome tax to my mortgage?
No. Because it arrives months after the transaction, it can’t be folded into your mortgage. You’ll need to budget for it in cash, separately from your down payment.
What amount is the tax calculated on?
The highest of three amounts: the agreed sale price, the amount written in the notarized deed, or the municipal assessment value multiplied by that year’s comparative factor. Usually it’s the purchase price — but if the municipal assessment is higher, that’s what counts.
Is there a first-time buyer rebate, like in Ontario?
Yes, as of recently. The welcome tax doesn’t waive on its own, but Quebec introduced — retroactive to January 1, 2026 — a refundable tax credit for home ownership that reimburses part of the transfer duties paid on a first home worth under $1,000,000: 100% of the first $5,000 of duties, plus 25% of the excess, up to a maximum of $5,875. You generally must not have owned a home in the past four years. It’s a credit claimed through Revenu Québec (an advance payment becomes available from October 2026), not a discount applied to the bill — so the amount this calculator shows is still what your municipality will bill you, but a good chunk can come back to you afterward. Montréal also runs a separate home-ownership assistance program. Check your eligibility with Revenu Québec and your municipality.
Why is the bill higher in Montréal?
Because Montréal has its own schedule, with upper brackets that climb faster than the rest of Quebec’s — notably a 2.0% rate on the slice from $552,300 to $1,104,700, where a base-rate municipality would still be at 1.5%.
Sources
- Gouvernement du Québec — Droits sur les mutations immobilières — the 2026 base schedule, the calculation basis (the highest of price, deed, or assessment), and the 3% cap for municipalities.
- Ville de Montréal — Comment sont calculés les droits sur les mutations immobilières — Montréal’s 2026 schedule, the $9,349 example for a $700,000 property, and the payment terms.
- Gouvernement du Québec — Help for first-home buyers — the refundable tax credit for home ownership (up to $5,875).
This page is for general information, not legal or financial advice. Figures are estimates as of June 2026 and change over time — confirm the current rates and your situation with your municipality or your notary.