Welcome tax rebate: Quebec refunds first-time buyers up to $5,875 in 2026
Quebec refunds your welcome tax: up to $5,875
On April 17, 2026, Quebec's Minister of Finance announced in information bulletin 2026-2 a brand-new refundable tax credit for property access. The stated goal: easing the "closing shock" — those thousands of dollars in cash due on purchase day, on top of the down payment.
In plain terms: if you buy your first home in Quebec in 2026, you can get up to $5,875 of the land transfer duties paid to your municipality — the famous "welcome tax" — refunded. The measure is retroactive: it covers any eligible home acquired starting January 1, 2026.
This is a major development for first-time buyers: until now, tax help for buying a first home was limited to non-refundable credits. This one is paid to you even if you owe no income tax. Here are the details.
How the credit is calculated
The calculation fits in two lines, straight from the official bulletin:
- 100% of the first $5,000 of land transfer duties paid;
- 25% of the next $3,500, for up to $875 in additional help.
The theoretical maximum is therefore $5,000 + $875 = $5,875.
| Purchase price (tax base)* | 2026 transfer duties | Tax credit | Share refunded |
|---|---|---|---|
| $300,000 | $2,685.50 | $2,685.50 | 100% |
| $450,000 | $4,860.50 | $4,860.50 | 100% |
| $616,000 | $7,350.50 | $5,587.63 | 76% |
| $800,000 | $10,110.50 | $4,700.00 | 46% |
\ Calculated with the 2026 base schedule (0.5% up to $62,900, 1% up to $315,000, 1.5% beyond). Several municipalities apply higher rates above $500,000 — in Laval, for instance, the rate jumps to 3% on that bracket, so the $616,000 home costs $9,090.50 in duties there; the credit then stays capped at $5,875.*
Check your own amount with [our Quebec welcome tax calculator](/en/quebec-welcome-tax-calculator), which applies your municipality's exact schedule.
Worked example: a couple buys at $450,000
Take Léa and Marc, first-time buyers purchasing a $450,000 condo in a municipality using the base schedule. On purchase day, the transfer duties bill:
- $62,900 × 0.5% = $314.50
- ($315,000 − $62,900) = $252,100 × 1% = $2,521.00
- ($450,000 − $315,000) = $135,000 × 1.5% = $2,025.00
- Total duties: $4,860.50, payable in cash within 30 days
The tax credit covers 100% of the first $5,000: the couple gets the full $4,860.50 back. Net result: zero dollars of welcome tax. That is exactly the scenario the government is targeting — for any property whose duties do not exceed $5,000, the refund is complete.
And if the home were worth $800,000? Duties would climb to $10,110.50 ($314.50 + $2,521.00 + $485,000 × 1.5% = $7,275.00). The base credit would hit the $5,875 cap… but a reduction would apply (see next section).
The phase-out: between $750,000 and $1 million, the credit shrinks
The credit is not meant for high-end properties. If the transfer-duty tax base exceeds $750,000, the credit is reduced by 2.35% of the excess — and falls to $0 once the base reaches $1,000,000.
Back to the $800,000 home:
- Base credit: $5,875
- Reduction: 2.35% × ($800,000 − $750,000) = 2.35% × $50,000 = $1,175
- Final credit: $5,875 − $1,175 = $4,700
Checking the math at $1,000,000: 2.35% × $250,000 = $5,875, so $5,875 − $5,875 = $0. The formula is consistent: the phase-out reaches exactly zero at one million.
Who qualifies? The 4 conditions
- Reside in Quebec at the end of the taxation year (or at the date of death, if applicable).
- Be a "first-time buyer": neither you nor your spouse or common-law partner has owned — alone or jointly — a home you lived in during the "reference period", i.e. from the start of the fourth calendar year before the acquisition up to the day before the acquisition. In practice: roughly four years without having been an owner-occupant.
- Have paid the transfer duties: you (or your spouse) must have actually paid them.
- The home must be eligible: a dwelling located in Quebec, acquired after December 31, 2025, intended to become your principal residence no later than one year after acquisition. The acquisition date is the day your right is registered in the land registry and the home is habitable.
Special case: the measure also covers the purchase of a more accessible home by a person with a severe disability, for themselves or a related person with a disability.
"Refundable": why it beats an ordinary credit
A non-refundable tax credit only reduces the tax you owe: if you owe no tax, it is worth nothing. A refundable credit is paid to you even when your tax bill is zero. So it is real money back in your pocket, whatever your income.
Good news: the new credit stacks with existing programs, which target different realities:
- the HBP (Home Buyers' Plan), letting you withdraw up to $35,000 from your RRSP tax-free for now;
- the FHSA, with deductible contributions and tax-free qualifying withdrawals;
- the home buyers' tax credit: $1,400 in Quebec and $1,500 federally — but those are non-refundable.
If you are planning a purchase, estimate your full day-one costs — down payment, welcome tax, notary fees — with [our Quebec mortgage calculator](/en/quebec-mortgage-calculator), and read [our guide to the FHSA](/en/blog/rrsp-fhsa) to see how it combines with this new credit.
How to receive the money: advance payment
Two possible paths:
1. Through your 2026 tax return: claim the credit on your return, and Revenu Québec pays it with your tax refund (or against any balance owing).
2. By advance payment, without waiting for tax season. You can request it if:
- you reside in Quebec at the time of the request;
- the transfer duties have been paid;
- the tax base does not exceed $1,000,000;
- the estimated credit exceeds $1,000;
- you consent to direct deposit.
The request must be filed no later than December 1 of the taxation year — so December 1, 2026 for a 2026 purchase. Revenu Québec still has to publish the exact filing procedure: watch its tax news if this concerns you.
Key takeaways
- New refundable credit starting with the 2026 taxation year, retroactive to purchases from January 1, 2026.
- Up to $5,875 of welcome tax refunded (100% of the first $5,000, 25% of the next $3,500).
- Reduction of 2.35% of the excess above $750,000: $0 from $1M up.
- Reserved for first-time buyers (about 4 years without ownership) and severe-disability situations.
- Advance payment available above $1,000, request before December 1, 2026.
Frequently asked questions
I bought my first home in March 2026. Am I eligible?
Yes, if you meet the other conditions. The credit applies to the 2026 taxation year, so it covers any eligible home acquired starting January 1, 2026. You can claim it on your 2026 tax return, or by advance payment before December 1, 2026 if the estimated credit exceeds $1,000.
My spouse has owned before, but I have not. Do we qualify?
No. The 'first home' condition applies to both spouses: if your spouse or common-law partner has owned — alone or jointly — a home you lived in during the reference period (roughly the four years before the acquisition), the home is not considered a first home and neither of you can claim the credit.
What does 'refundable tax credit' mean in practice?
It means you receive the amount even if you pay no income tax. A non-refundable credit only reduces tax owing — if that is zero, the credit is worth nothing. Here, Revenu Québec pays you the calculated amount in all cases, by cheque or direct deposit.
Can I combine this credit with the HBP, the FHSA and the home buyers' credit?
Yes. These are separate programs that stack: the HBP and FHSA deal with savings and financing the purchase, the home buyers' tax credit ($1,400 in Quebec, $1,500 federally) is another tax credit, and the new refundable credit specifically refunds land transfer duties.
If the home is worth $1.2 million, can I claim the credit on part of it?
No. The 2.35% reduction of the excess over $750,000 brings the credit to $0 once the tax base reaches $1,000,000. Above that threshold, no credit is granted.
When will I receive the money if I buy this fall?
Two options: wait for your 2026 tax return (the credit will be paid with your tax refund), or request an advance payment — available once the estimated credit exceeds $1,000, with direct deposit, no later than December 1, 2026. Revenu Québec will publish the filing procedure.