What it is
A duty collected by the municipality on every transfer of property, governed by the Act respecting duties on transfers of immovables. It is owed by the buyer, once, after the transaction. The nickname “welcome tax” comes from the name of the minister who introduced it, not from any welcome.
How it is calculated
In successive brackets, on the highest of three values: the price paid, the consideration stated in the deed, or the municipal assessment multiplied by that year’s comparative factor. Bracket thresholds are indexed annually, and municipalities may add their own brackets above a certain amount.
When it is paid
The municipality sends a bill in the weeks or months after the deed is registered in the Land Register. The amount is not included in the mortgage and cannot be added to it: it is paid in cash, like the notary’s fees.
Exemptions
The Act provides exemptions, notably for a transfer between spouses, in the direct ascending or descending line, or when the taxable base is below a threshold. Each case has conditions; the notary confirms the applicable exemption before signing.
Montreal, a case apart
Montreal applies additional brackets beyond the provincial thresholds. An identically priced property therefore costs more in transfer duties on the island than in most other Quebec cities.
Building it into your plan
A mortgage broker includes this cost in the cash needed at closing, along with notary fees, inspection, appraisal, and tax adjustments. It is one reason to speak with them before making an offer, not after.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.