Money and taxes6 min read

The welcome tax.

The welcome tax is a one-time transfer duty your municipality bills a few weeks after you buy. On a $500,000 home outside Montreal, it lands around $5,650. Estimate yours below, then see how it is calculated.

Updated July 10, 2026

Almost every buyer asks me this, often right after they see the price: how much does the welcome tax come to? It is a fair question, because it is a real amount you have to plan for, and it stings when you are not expecting it.

The calculator above gives you an estimate in seconds. Below, I explain where that number comes from, so you understand what you are paying.

What is the welcome tax, really?

It is the property transfer duty: a one-time tax the municipality collects when a property changes hands. The nickname comes from the minister who introduced the law, Jean Bienvenue, whose surname means welcome. Sadly, it is not an actual welcome gift.

It has nothing to do with your annual municipal taxes. It is a one-off payment, tied only to the purchase.

How is the welcome tax calculated?

In brackets, a bit like income tax. Each portion of the price is taxed at its own rate, not the whole price at the top rate. The province sets base rates, indexed each year.

0.5% on the first band (about $61,500).
1.0% on the next band (up to about $307,800).
1.5% on everything above that threshold.

Some municipalities add higher rates on the portion above $500,000, and the City of Montreal applies its own more detailed schedule on higher-value homes. The calculator above lets you switch between the standard rates and Montreal's.

When do I pay it, and to whom?

Not at the notary. The municipality mails you a bill, usually a few weeks to a few months after the signing. You pay the city directly, in one payment or sometimes two depending on the municipality.

Set the money aside as soon as you buy. This is the kind of bill that shows up once you have forgotten it, after the move, when the budget is already tight.

Is it based on the price or the municipal assessment?

On the greater of the two: the price paid, or the municipal assessment adjusted by a comparative factor. In most sales the price is higher, so that is the base. The calculator estimates on the price you enter, which is almost always the right benchmark.

Are there any exemptions?

Yes, a few. Transfers between spouses, or in a direct line (parent to child, for example), are often exempt, as are transactions under a small threshold. The rules have specific conditions, so if you think you qualify, confirm it with your notary before signing.

How much should I budget?

Use the calculator for your exact price. As a rough guide, outside Montreal, expect around $3,000 on a $350,000 home, about $5,650 on $500,000, and close to $9,400 on $750,000. In Montreal, the upper brackets push the total higher on pricier homes.

Frequently asked questions

Is the welcome tax payable every year?

No. It is a one-time tax, paid once at purchase. It is separate from your annual municipal and school taxes.

Can I roll it into my mortgage?

Usually not. It is a separate bill the municipality sends after the purchase, paid out of pocket. Plan for it in your closing budget alongside notary fees and the inspection.

Are first-time buyers exempt?

Not at the provincial level. Some municipalities do offer targeted programs or rebates for first-time buyers, though. It is worth checking with your city, and I can help you look.

Sources

Revenu Quebec: Property transfer duties