Housing

2026 welcome tax in Quebec: the bracket calculation, and why Montreal costs more

Published on October 5, 2026 · 5 min read · By CalculQuébec

What exactly is the "welcome tax"?

Its real name: duties on the transfer of immovables (land transfer tax). It's a municipal tax every buyer must pay after acquiring a property in Quebec, under the Act respecting duties on transfers of immovables (CQLR, chapter D-15.1). If several people buy together, they are jointly responsible for payment.

Two things to understand from the start: the amount is not a simple percentage of the purchase price, and it varies from one city to another. Here is how it really works in 2026.

Step 1: determine the tax base (it's not always the price)

First surprise for many buyers: the tax isn't necessarily calculated on the price you paid. The municipality uses the highest of the following three amounts:

the price actually paid for the immovable, excluding GST and QST;
the amount stated in the deed of sale;
the market value of the immovable, i.e. the value on the property assessment roll multiplied by the city's comparative factor.

The comparative factor brings the roll value back to market value. Each city publishes its own every year: it is 1.00 in Montreal and 1.032 in Laval in 2026.

Worked example. You buy a house for $500,000. The roll value is $450,000 and your city's comparative factor is 1.15:

Market value: $450,000 × 1.15 = $517,500
The tax base is therefore $517,500 (not $500,000), because it's the highest amount.

The duties, with the 2026 base schedule:

$62,900 × 0.5% = $314.50
$252,100 × 1% = $2,521.00
($517,500 − $315,000) = $202,500 × 1.5% = $3,037.50
Total: $5,873.00

The moral: a high assessment roll value combined with a comparative factor above 1 can inflate your bill beyond what the purchase price suggested.

Step 2: apply the bracket schedule (2026)

The calculation is progressive: each bracket of the tax base is taxed at its own rate, much like income tax. For 2026, the base brackets — indexed each year to Quebec's consumer price index (section 2.1 of the Act) — are:

Tax base bracket	Rate
Up to $62,900	0.5%
$62,900 to $315,000	1%
Above $315,000	1.5%

Caution: since 2018, municipalities may set a rate above 1.5% on the bracket exceeding $500,000, up to 3% — except Montreal, which has its own regime with no cap. As a result, several cities already apply their own grids. Laval, for example, charges 3% above $500,000, and Quebec City applies 2.5% between $500,000 and $750,000, then 3% above.

Worked example. A condo bought for $450,000 in a city using the base schedule:

$62,900 × 0.5% = $314.50
$252,100 × 1% = $2,521.00
($450,000 − $315,000) = $135,000 × 1.5% = $2,025.00
Total: $4,860.50

Rather than redoing the math by hand, you can use [our welcome tax calculator](/en/quebec-welcome-tax-calculator): enter the price, the city and the roll value, and it applies the right schedule automatically.

Why Montreal costs more

This is where it gets interesting. The City of Montreal applies an increased schedule once the tax base exceeds $552,300. Here is its official 2026 grid:

Tax base bracket (Montreal, 2026)	Rate
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%
Above $3,113,000	4%

Important point: below $552,300, Montreal doesn't cost a penny more than anywhere else. A $450,000 purchase costs exactly $4,860.50 there, as under the base schedule. The Montreal surtax only hits the portion of value above $552,300.

The City of Montreal itself gives this official 2026 example, with a tax base of $700,000:

$62,900 × 0.5% = $314.50
$252,100 × 1% = $2,521.00
$237,300 × 1.5% = $3,559.50
($700,000 − $552,300) = $147,700 × 2% = $2,954.00
Total: $9,349.00

The same $700,000 in a base-schedule city would cost $8,610.50 ($314.50 + $2,521.00 + $385,000 × 1.5% = $5,775.00). The difference: $738.50 more in Montreal. And the gap grows fast with price, as this comparison shows:

Purchase price	Base schedule	Montreal	Gap
$450,000	$4,860.50	$4,860.50	$0
$700,000	$8,610.50	$9,349.00	+$738.50
$1,500,000	$20,610.50	$27,325.50	+$6,715.00

Let's verify the $1,500,000 in Montreal: $314.50 + $2,521.00 + $3,559.50 + ($552,400 × 2% = $11,048.00) + ($395,300 × 2.5% = $9,882.50) = $27,325.50. And under the base schedule: $314.50 + $2,521.00 + ($1,185,000 × 1.5% = $17,775.00) = $20,610.50. The $6,715 gap speaks for itself.

When and how to pay?

The municipality sends you the bill in the months following the purchase. In Montreal, duties are payable in a single instalment, within 30 days of the bill being sent. Most cities apply the same 30-day deadline.

Crucial for your budget: welcome tax is paid in cash, on top of your down payment and notary fees. It cannot be added to your mortgage. That's one reason the "closing-day cash" often exceeds the down payment alone: use [our mortgage calculator](/en/quebec-mortgage-calculator) to estimate all your purchase costs, and [our welcome tax calculator](/en/quebec-welcome-tax-calculator) for the exact duties.

If you're a first-time buyer building up your down payment, our guide [RRSP or FHSA: which to choose?](/en/blog/rrsp-fhsa) will help you optimize your savings for the purchase.

Exemptions: in some cases, you can pay less (or nothing)

The Act provides exemptions for certain transactions, for example between certain family members or from an individual to a corporation, under specific conditions. In exempt cases, the municipality may still require a supplementary duty (compensation of up to $200). The exact rules vary: check with your municipality or notary before concluding a transaction is exempt.

What to remember

Welcome tax is the duty on transfers of immovables, paid by the buyer and calculated on the tax base (the highest of the price, the deed amount and market value).
2026 base schedule: 0.5% up to $62,900, 1% up to $315,000, 1.5% above — brackets indexed each year.
Cities may increase rates above $500,000 (up to 3%, uncapped in Montreal).
Montreal charges 2% to 4% on brackets above $552,300: at $700,000, that's $9,349 vs $8,610.50 elsewhere.
Bill sent after purchase, payable in cash within 30 days: budget for it in your purchase plan.

Frequently asked questions

Is welcome tax calculated on the purchase price?

Not necessarily. It's calculated on the tax base — the highest of the price actually paid (excluding GST and QST), the amount stated in the deed of sale, and the market value of the immovable (assessment roll value multiplied by the city's comparative factor). If market value exceeds the price paid, it's the base for the calculation.

When do I have to pay welcome tax?

The municipality sends you the bill in the months following the purchase. In Montreal, duties are payable in a single instalment, within 30 days of the bill being sent. Most cities apply the same 30-day deadline: check the exact terms on your bill.

Why is welcome tax higher in Montreal?

Montreal applies an increased schedule on tax base brackets above $552,300: 2%, 2.5%, 3.5% then 4%, without the 3% cap imposed on other cities. Below $552,300, the amount is identical to the base schedule: at $450,000, you pay $4,860.50 in both cases.

Do the welcome tax brackets change every year?

Yes. Section 2.1 of the Act respecting duties on transfers of immovables provides for annual indexation of the brackets to Quebec's consumer price index. For 2026, the base thresholds are $62,900 (0.5%) and $315,000 (1%).

Can I be exempt from welcome tax?

Certain transactions may be exempt, for example between certain family members or from an individual to a corporation, under specific conditions. In exempt cases, the municipality may still require a supplementary duty (compensation of up to $200). Check with your municipality or notary.

Can I roll welcome tax into my mortgage?

No. It must be paid in cash, on top of your down payment and notary fees. That's why "closing-day cash" often exceeds the down payment alone: budget for it in your total purchase budget.

Official sources

Welcome tax calculator →Mortgage calculator →