Definition
Property transfer duties (DMI), commonly called 'welcome tax' in Quebec, are a municipal tax payable on any real estate property transfer.
**Calculation base**: The amount is calculated on the highest of these three values: 1. Sale price 2. Consideration stipulated in the deed of sale 3. Market value of the property on the municipal assessment roll × weighting factor
**Progressive rates (base, Act Respecting Duties on Transfers of Immovables)**: - Tranche $0 → $58,900: 0.5% - Tranche $58,900 → $294,600: 1.0% - Tranche $294,600 → $500,000: 1.5% - Tranche above $500,000: 2.0% - Municipalities may add an additional tranche (e.g., Montreal adds 3.5% above $2M)
**Calculation examples**: - Property $400,000: 0.5% × $58,900 + 1% × ($294,600 - $58,900) + 1.5% × ($400,000 - $294,600) = $294.50 + $2,357 + $1,581 = $4,232.50 - Montreal $600,000: approximately $7,757
**Exemptions**: - Transfer between spouses (legal marriage or civil union) - Direct succession (direct line ascendant/descendant) - Certain corporate transfers (reorganizations)
**Payment**: The invoice is sent by the municipality a few months after closing. Budget for this in post-transaction liquidity.