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It is the most predictable unpleasant surprise in Quebec real estate. You signed at the notary, you moved in, everything is fine, and three to six months later your municipality sends you a bill for several thousand dollars.
Those are the real estate transfer duties, which everyone calls the welcome tax.
What it actually is
Despite the nickname, it has nothing to do with being new in town. It is a municipal tax levied on the transfer of ownership of an immovable, set out in Quebec’s Act respecting duties on transfers of immovables (CQLR, c. D-15.1).
The name comes from Jean Bienvenue, the minister who introduced the measure in the 1970s. It is a coincidence of surname, not a welcome message.
How the amount is calculated
The tax is calculated on the tax base, which is the greatest of the following three amounts:
- The price paid for the property
- The consideration stipulated in the deed
- The market value of the property at the time of transfer, which the municipality derives from the assessment roll multiplied by the comparative factor for the year
That third point is the one that surprises people. If you buy a property well below its assessed value, the tax is still calculated on the adjusted roll value, not on the price you paid.
The calculation is then progressive, in brackets. Each portion of the tax base is taxed at its own rate, like income tax: only the part above a threshold is taxed at the higher rate.
The 2026 and 2027 brackets
The first two thresholds are indexed every year. On July 31, 2026, the Ministère des Affaires municipales et de l’Habitation confirmed indexation of 2.4173% for 2027. The new thresholds apply to transfers made on or after January 1, 2027.
| Portion of the tax base | Rate | 2026 | 2027 |
|---|---|---|---|
| First bracket | 0.5% | up to $62,900 | up to $64,400 |
| Second bracket | 1% | $62,900 to $315,000 | $64,400 to $322,600 |
| Above | 1.5% | over $315,000 | over $322,600 |
These are the rates set by the Act. They apply everywhere in Quebec up to $500,000.
Worked examples at the provincial rates
| Tax base | Duty 2026 | Duty 2027 |
|---|---|---|
| $300,000 | $2,685.50 | $2,678 |
| $400,000 | $4,110.50 | $4,065 |
| $500,000 | $5,610.50 | $5,565 |
The detail for $400,000 in 2027: $64,400 at 0.5% gives $322, the next $258,200 at 1% gives $2,582, and the remaining $77,400 at 1.5% gives $1,161. Total: $4,065.
Indexation lowers the bill slightly from one year to the next for the same base, because more of the price falls into the low-rate brackets. It does not offset a higher price: a house that costs $20,000 more costs up to $300 more in duties, at the 1.5% rate.
Above $500,000: each city sets its own rate
The Act allows a municipality to set, by by-law, a rate higher than 1.5% on the portion above $500,000, up to 3%. The City of Montreal is the only one not subject to that cap. The $500,000 threshold is not indexed.
Montreal in 2026. According to the City of Montreal, the 2026 brackets are:
| Portion of the tax base | Rate |
|---|---|
| Up to $62,900 | 0.5% |
| $62,900 to $315,000 | 1% |
| $315,000 to $552,300 | 1.5% |
| $552,300 to $1,104,700 | 2% |
| $1,104,700 to $2,136,500 | 2.5% |
| $2,136,500 to $3,113,000 | 3.5% |
| Over $3,113,000 | 4% |
The example published by the city, for a $700,000 base in 2026, comes to $9,349. Montreal’s 2027 brackets are set with its 2027 budget: the first two thresholds will follow the Act, $64,400 and $322,600.
Laval in 2026. The City of Laval publishes its 2026 brackets: 0.5% up to $62,900, 1% up to $315,000, 1.5% up to $500,000 and 3% above. On a $630,000 base, the median price of a single-family home in Laval in the third quarter of 2026 according to the QPAREB, the calculation gives $5,610.50 up to $500,000, plus $3,900 on the next $130,000: $9,510.50. The tax base can, however, exceed the price: it is the roll value multiplied by the comparative factor, 1.03 in 2026, when that is higher. In the city’s example, a property bought for $650,000 and entered on the roll at $650,000 is taxed on $669,500, for $10,695.50. According to the Courrier Laval of February 9, 2026, city council also asked staff to study spreading the payment over several instalments starting with the 2027 fiscal year. The 2027 rate and terms depend on the city’s 2027 budget.
Elsewhere in 2026. Several suburban cities have adopted their own rate for the portion above $500,000. These are the rates five of them publish on their website:
| City | Rate on the portion above $500,000 | Published or calculated example |
|---|---|---|
| Terrebonne | 3% | $8,160.50 for $585,000 (city’s example) |
| Boisbriand | 2.5% up to $800,000, then 3% | $6,860.50 for $550,000 (city’s example) |
| Sainte-Thérèse | 3% | $8,160.50 for $585,000 |
| Delson | 3%, payable in one or four instalments | $8,175.50 for $585,500, the Delson median |
| Saint-Bruno-de-Montarville | 3% | $17,085.50 for $882,500 |
Examples without a note are calculated with the 2026 brackets. For another municipality, ask the city, or your notary, for the by-law in force before you make your offer. The welcome tax calculator applies these cities’ rates, those of Montreal, Laval, Quebec City and Gatineau, and the rates set by the Act elsewhere.
When you receive it
The bill does not arrive at signing. It arrives when the municipality processes the transfer, which generally takes three to six months after the transaction, sometimes longer.
The duty becomes payable on the 31st day after the municipality sends the bill, under section 11 of the Act. Some municipalities allow more than one instalment, others do not.
The trap is simple: you drained your cash for the down payment, notary fees and the move, you think the hard part is behind you, and a bill for several thousand dollars arrives when your account is at its lowest.
Set the money aside at the time of purchase. That is the only advice that matters here. Calculate the amount before you make your offer, and keep it in a separate account until the notice arrives.
Who pays it
The purchaser, in virtually every case. It is a tax that hits the buyer, not the seller.
The notary does not collect it at signing and does not include it in the statement of disbursements. The notary transmits the transfer notice to the municipality, and the municipality then bills you directly.
So do not expect this amount to show up in the notary’s accounting. It comes afterward, separately.
The exemptions that genuinely exist
The Act provides certain exemptions, mainly for transfers between related parties: between spouses, in the direct ascending or descending line, and certain transfers involving closely related corporations. Even when the transfer is exempt, the municipality may, by resolution, charge a compensatory duty (droit supplétif) of at most $200.
The conditions are precise and the notary verifies them at the time of the transaction. If your situation resembles one of these cases, mention it to your notary early, not after.
What about a first purchase? The tax is still owed, but since 2026 Quebec refunds part of it. The refundable tax credit for access to home ownership, announced in April 2026, gives first-time buyers back 100% of the first $5,000 of transfer duties and 25% of the next $3,500, up to $5,875, for a home acquired on or after January 1, 2026. It shrinks above a value of $750,000 and disappears at $1,000,000. It replaces the equivalent municipal aid: Montreal closed its own program on July 7, 2026. Conditions and the first-time buyer definition: first-time buyer tax advantages. This is money many eligible buyers may never claim.
Where it belongs in your budget
The welcome tax is part of closing costs, alongside:
- Notary fees
- The pre-purchase inspection
- Adjustment of municipal and school taxes prepaid by the seller
- Home insurance
- The move
Plan the whole set with the closing costs calculator, and read the hidden costs of homeownership for the complete list. The other dates that affect owners in 2027 are gathered in the changes for Quebec homeowners.
Want the exact amount for a specific property before you make an offer? Write to me with the address and the price you have in mind and I will run the calculation.
Frequently asked questions
How much is the welcome tax on a $400,000 house in 2027?
At the provincial rates, $4,065: $322 on the first $64,400, $2,582 on the bracket from $64,400 to $322,600, and $1,161 on the remaining $77,400. In 2026, the same base gave $4,110.50.
What are the welcome tax brackets for 2027?
$64,400 and $322,600, compared with $62,900 and $315,000 in 2026. The Ministère des Affaires municipales et de l’Habitation confirmed them on July 31, 2026, after indexation of 2.4173%.
Is the $500,000 threshold indexed?
No. The Act indexes only the first two thresholds. The $500,000 threshold, above which a municipality may set a higher rate, stays fixed.
What is the welcome tax rate in Montreal?
In 2026: 0.5% up to $62,900, 1% up to $315,000, 1.5% up to $552,300, 2% up to $1,104,700, 2.5% up to $2,136,500, 3.5% up to $3,113,000 and 4% above that. The 2027 brackets are set with the city’s 2027 budget.
What is the welcome tax rate in Laval above $500,000?
The City of Laval publishes its 2026 brackets: 0.5% up to $62,900, 1% up to $315,000, 1.5% up to $500,000 and 3% above. The 2027 rate depends on the 2027 budget: confirm it with the city before you sign.
Are first-time buyers exempt from the welcome tax?
No, the tax is still owed. Since 2026, the refundable tax credit for access to home ownership refunds 100% of the first $5,000 of duties and 25% of the next $3,500, up to $5,875.
Sources
- Loi concernant les droits sur les mutations immobilières (RLRQ, c. D-15.1), LegisQuébec, Éditeur officiel du Québec (accessed 2026-10-19)
- Montants permettant d'établir les tranches de la base d'imposition des droits sur les mutations immobilières, exercice 2027, Ministère des Affaires municipales et de l'Habitation (accessed 2026-10-21)
- Comment sont calculés les droits sur les mutations immobilières, Ville de Montréal (accessed 2026-10-31)
- Taxe pour les nouveaux propriétaires (droits de mutation immobilière), Ville de Laval (accessed 2026-10-31)
- Taxe de bienvenue: Laval pourrait étaler les versements dès 2027, Courrier Laval (accessed 2026-10-31)
- Baromètre résidentiel, 3e trimestre 2026, RMR de Montréal, APCIQ (accessed 2026-10-19)
- Instauration d'un crédit d'impôt remboursable pour accès à la propriété, Revenu Québec (accessed 2026-10-21)
- Droits de mutation - Ville de Delson, Ville de Delson (accessed 2026-10-31)
- Taxes - Ville de Terrebonne, Ville de Terrebonne (accessed 2026-10-31)
- Taxes municipales, évaluation foncière et compteur d'eau, Ville de Boisbriand (accessed 2026-10-31)
- Taxes, évaluation et droit de mutation, Ville de Sainte-Thérèse (accessed 2026-10-31)
- Droits de mutation - Taxe de bienvenue, Ville de Saint-Bruno-de-Montarville (accessed 2026-10-31)
Georges Matar
Residential Real Estate Broker · RE/MAX DU CARTIER INC.
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