Welcome tax calculator
Calculate the transfer duties applicable to your purchase.
For estimation purposes only. Consult your notary for the exact amount applicable to your transaction.
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How Our Welcome Tax Calculator Works
Our welcome tax calculator is a simple, fast, and completely free tool that lets you estimate the welcome tax payable after the purchase of a property in Quebec. Just enter the sale price or the property’s value, select the relevant municipality, and click calculate. The tool automatically applies the tax brackets currently in effect and instantly returns the approximate amount of your real estate transfer duties.
The result provided is an estimate. The exact amount will be communicated by your municipality within 3 to 6 months following the signing of the notarial deed, and the official calculation may vary slightly depending on the comparative factor applied to your municipal assessment.
To plan your full home-buying budget, complement this calculation with our mortgage calculator, which lets you estimate your monthly payments.
What Is the Welcome Tax in Quebec
The welcome tax — officially called real estate transfer duties (or transfer duties on immovables) — is a municipal tax that every new owner must pay when a property is transferred in Quebec. It applies to the acquisition of every type of residential and commercial property: single-family homes, condos, duplexes, triplexes, income properties, and land.
The Origin of the Name: Jean Bienvenue
The term “welcome tax” — taxe de bienvenue — refers to Jean Bienvenue, the former Quebec Minister of Municipal Affairs who introduced this measure in the Act respecting duties on transfers of immovables, adopted in 1976. The name is therefore a nod to the minister, and has nothing to do with a cordial welcome from the municipality to the new owner.
A Municipal Tax, Paid Only Once
Unlike property taxes, which you pay every year, the welcome tax is a one-time payment collected by the municipality when you acquire your property. It’s billed by the city where the property is located, regardless of where the buyer lives, and it funds local services and infrastructure such as roads, parks, and public facilities.
How the Welcome Tax Is Calculated
The calculation of transfer duties follows a precise logic set out in the Act respecting duties on transfers of immovables.
The Tax Base: Sale Price or Municipal Assessment
The tax base is the highest of three amounts: the sale price written in the notarial deed (excluding GST and QST), the consideration actually paid for the transfer of the property, and the market value drawn from the property assessment roll, multiplied by a comparative factor set each year by the municipality.
In practical terms, if you buy a condo for $450,000 but its value on the property assessment roll (multiplied by the comparative factor) reaches $470,000, that higher amount is what will be used as the basis for the calculation. To fully understand the distinction between these two values, see our article on market value vs municipal assessment. If you’re selling your current property, our free online evaluation tool can help you estimate its market value.
The Tax Bracket System
Once the tax base is established, the tax is calculated through successive brackets, each with its own marginal rate. The base brackets in Quebec — indexed each year under section 2.1 of the Act — are as follows:
- Bracket 1: $0 to $62,900, rate of 0.5%
- Bracket 2: $62,900.01 to $315,000, rate of 1%
- Bracket 3: $315,000.01 and over, rate of 1.5%
That said, municipalities have the right to establish additional upper brackets with higher rates (up to 3%, and even more in Montreal thanks to a special regime). That’s why the calculation varies from one city to another.
Welcome Tax Brackets and Rates in Montreal for 2026
Montreal was the first city to introduce upper brackets at higher rates. Here are the official brackets that apply in Montreal for 2026:
- Bracket 1: $0 to $62,900, rate of 0.5%
- Bracket 2: $62,900.01 to $315,000, rate of 1%
- Bracket 3: $315,000.01 to $600,000, rate of 1.5%
- Bracket 4: $600,000.01 to $1,200,000, rate of 2%
- Bracket 5: $1,200,000.01 to $2,500,000, rate of 2.5%
- Bracket 6: $2,500,000.01 and over, rate of 3%
For a $700,000 property bought in Montreal in 2026, the City’s official calculation produces transfer duties of approximately $9,349. That’s a significant amount to plan for, on top of your down payment and notary fees.
The Welcome Tax in Montreal vs Surrounding Municipalities
The welcome tax is calculated and collected at the municipal level, which means the amount payable can vary significantly depending on the city where you buy. Montreal applies upper brackets at higher rates, which makes the tax more expensive for properties above $600,000 than in many surrounding municipalities. Laval, Longueuil, Brossard, and other off-island cities have also adopted their own upper brackets, but often at different thresholds.
If you’re comparing a property purchase in Montreal against one in a neighbouring municipality, the calculator above lets you quickly evaluate the difference in transfer duties between the two options. That gap can reach several thousand dollars for a property over the million-dollar mark.
When and How to Pay Your Welcome Tax
The municipality sends you the real estate transfer duties bill between three and six months after the signing of the deed of sale with the notary. Once you receive the bill, you have 30 days to make the payment, which is made in a single instalment.
Many buyers are caught off guard by the delay between the signing and the arrival of the bill: don’t spend the money you’ve earmarked for the welcome tax — you’ll need it a few months down the road.
The tax bill can be paid online, by cheque, or directly at the municipal counter, depending on what your city offers. In case of late payment, the municipality applies interest and may initiate proceedings to recover the amounts owed.
Exemptions and Programs to Reduce or Avoid the Welcome Tax
Several situations qualify you for a total or partial exemption from the welcome tax. The main exemptions provided by law include:
- Transfers between married or civil-union spouses
- Transfers between a direct-line ascendant or descendant (parent to child, for example)
- Transfers in the course of an estate settlement
- Transfers tied to a corporate reorganization in certain cases
For first-time buyers, the City of Montreal also offers the Home Ownership Program, which can take the form of financial assistance that varies depending on your situation, the type of property, and the area. This program is administered directly by the City. To prepare for your purchase and take advantage of every program available, the support of an experienced broker remains your strongest asset: see our criteria on how to choose the right real estate broker in Montreal.
Frequently Asked Questions About the Welcome Tax Calculator
Who Pays the Welcome Tax: the Buyer or the Seller?
The buyer, as the new owner, is responsible for paying the welcome tax. The municipality issues the bill in the name of the new owner after the deed of sale is registered, and the payment must be made within 30 days of receipt. The seller has no obligation related to this tax.
Is the Welcome Tax Calculated on the Sale Price?
Not always. The tax base is the highest of the sale price written in the notarial deed, the consideration actually paid, and the market value drawn from the property assessment roll (multiplied by the comparative factor). If the adjusted municipal assessment exceeds the sale price, that’s what will be used for the calculation. That’s why it’s important to use the right amount when estimating the tax.
How Much Does the Welcome Tax Cost for a $500,000 Condo in Montreal?
For a condo bought at $500,000 in Montreal in 2026, the welcome tax comes to approximately $5,199, calculated using the brackets in effect (0.5% on the first bracket, 1% on the second, and 1.5% on the portion between $315,000 and $500,000). The exact calculation may vary slightly depending on the comparative factor applied to the municipal assessment. You can also see our properties for sale in Rosemont–La Petite-Patrie to gauge the home-buying budget in a popular Montreal area.
What Happens if I Don’t Pay the Welcome Tax Within 30 Days?
If you don’t pay your welcome tax within the 30-day window, the municipality applies interest on the amount owed and can initiate proceedings to recover the sums. Over the longer term, a default can lead to additional fees, a legal notice, and — in extreme cases — seizure. It’s therefore strongly recommended to budget for this expense in your acquisition plan from the very start.
Is There a Program for First-Time Buyers in Montreal?
Yes — the City of Montreal offers a Home Ownership Program that can ease the cost of buying for first-time buyers, subject to certain conditions related to the type of property, the purchase price, and the family situation. The program generally takes the form of direct financial assistance or a partial refund of the welcome tax. Since the conditions are updated regularly, check the official City of Montreal website to verify your eligibility at the time of your purchase.