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Welcome tax (transfer duties) — details

Français : Droits de mutation (taxe de bienvenue) — détail

Detailed calculation of transfer duties in Quebec, based on the higher of sale price and municipal assessment. Progressive rates from 0.5% to 3%+. Paid once at the notary.

Definition

Real estate transfer duties (commonly called 'welcome tax' in homage to Jean Bienvenue, the minister who introduced them in 1976) are calculated on the higher of: - The declared sale price in the deed, AND - Municipal assessment × 1 (value on assessment roll)

2024 scale (Province of Quebec): - On the first $58,900: 0.5% - From $58,900 to $294,600: 1.0% - From $294,600 to $552,300: 1.5% - From $552,300 to $1,066,200: 2.0% - Above $1,066,200: 2.5%

In Montreal: an additional 0.5% applies on the portion > $552,300 (totaling 3% on the highest bracket in Montreal).

Example: purchase at $500,000 = (58,900 × 0.5%) + ((294,600-58,900) × 1%) + ((500,000-294,600) × 1.5%) = $295 + $2,357 + $3,081 = $5,733

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This definition is provided for informational purposes only and does not constitute legal, tax, or financial advice. For a personal situation, consult an AMF-licensed mortgage broker, notary, accountant, or the relevant financial institution.