Definition
Land transfer tax — popularly known as 'taxe de bienvenue' or welcome tax — is a mandatory municipal tax on every real estate transfer in Quebec. It is calculated on the highest of: the sale price, the market value, and 90% of the municipal assessment.
The base scale in Quebec (2026) is progressive:
- 0.50% on the first $58,900 - 1.00% from $58,900 to $294,600 - 1.50% above $294,600
The City of Montreal applies additional brackets from $552,300 (2%) and $1,104,700 (4%). These thresholds are indexed annually.
An exemption exists for first-time buyers in certain municipalities (e.g., Montreal partially exempts first buyers). The tax is payable to the notary at the deed signing. It is one of the most significant purchase costs to anticipate — typically $5,000 to $15,000 for a $500,000 Montreal property.