Quebec Welcome Tax 2026: How It’s Calculated, Rates and First-Time Buyer Refund

The welcome tax is a one-time amount you pay to your municipality after buying a property in Quebec. In 2026, it comes to about $4,100 on a $400,000 home in most municipalities, and $5,610 on a $500,000 home in Montreal. The good news: since January 1, 2026, first-time buyers can get up to $5,875 of it back from the Quebec government.

What is the welcome tax?

Its official name is the property transfer duty (droits sur les mutations immobilières). It is nicknamed the “welcome tax” after Jean Bienvenue, the minister who introduced it in 1976. It applies to almost every real estate purchase in Quebec: houses, condos, plexes, land and commercial buildings.

Your notary does not collect it. Your municipality mails you a bill a few weeks or months after closing. Payment is usually due within 30 days; some cities, such as Quebec City, allow instalments.

What amount is it based on?

The municipality uses the highest of these three amounts

1. the price actually paid (excluding GST and QST);
2. the price stated in the deed of sale;
3. the market value, i.e. the municipal assessment multiplied by the year’s comparative factor.

So if you buy below the municipal assessment, you still pay tax on the market value.

2026 welcome tax rates

The tax is calculated by brackets, like income tax: each rate applies only to the portion of the price within its bracket. Bracket thresholds are indexed every year.

Standard brackets (most municipalities)

Some cities add higher brackets for more expensive properties. Quebec City charges 2.5% from $500,000 to $750,000 and 3% above. Montreal has the most brackets.

Montreal brackets in 2026

Calculation examples

$400,000 home, standard brackets

• $62,900 × 0.5% = $314.50
• ($315,000 − $62,900) × 1% = $2,521
• ($400,000 − $315,000) × 1.5% = $1,275
• Total: $4,110.50

$500,000 condo in Montreal

• $314.50 + $2,521 + ($500,000 − $315,000) × 1.5% = $2,775
• Total: $5,610.50

$700,000 home in Montreal

• $314.50 + $2,521 + $3,559.50 (1.5% bracket) + ($700,000 − $552,300) × 2% = $2,954
• Total: $9,349

$600,000 home in Quebec City

• $314.50 + $2,521 + ($500,000 − $315,000) × 1.5% = $2,775 + ($600,000 − $500,000) × 2.5% = $2,500
• Total: $8,110.50

For your own numbers, try our welcome tax calculator (jjhypotheque.com/en/calculators).

First-time buyers: up to $5,875 back

Since January 1, 2026, Quebec offers a refundable tax credit for access to homeownership. It refunds:

• 100% of the first $5,000 of welcome tax;
• 25% of the next $3,500, up to an extra $875.

The maximum is $5,875. The credit is reduced by 2.35% of the property value above $750,000 and disappears at $1,000,000.

Who qualifies?

• You buy a home after December 31, 2025.
• Neither you nor your spouse owned and lived in a home during the 4 calendar years before the purchase.
• The home becomes your principal residence within one year of the purchase.
• You live in Quebec at the end of the year of purchase.
• You or your spouse paid the welcome tax.

The credit also covers buying a more accessible home for a person with a severe and prolonged disability.

What it means in practice

How to claim it

1. First pay the welcome tax bill to your municipality.
2. Claim the credit on your Quebec income tax return for the year of purchase.
3. Or request an advance payment through Revenu Québec’s My Account for individuals, if your credit is over $1,000 and the home is worth $1,000,000 or less. For a 2026 purchase, the request must be sent by December 1, 2026.

Other help for first-time buyers

• Federal first-time home buyers’ tax credit: up to $1,500.
• Quebec first-time home purchase tax credit: up to $1,400.
• Home Buyers’ Plan (HBP): withdraw up to $60,000 from your RRSP for your down payment.
• First Home Savings Account (FHSA): save up to $8,000 a year tax-free toward your first home.

Our first-time home buyer’s guide explains how to combine them.

Who is exempt?

Some transfers are exempt from the welcome tax if the notary records the exemption in the deed:

• between spouses, married or common-law;
• between parents and children (direct line);
• to a corporation in which you hold at least 90% of the voting shares, or the reverse.

How to budget for it

The welcome tax cannot be added to your mortgage: it is paid in cash. Lenders usually ask you to show about 1.5% of the purchase price in available funds for closing costs (welcome tax, notary, inspection, tax adjustments).

For first-time buyers, the $5,875 credit comes after you pay, so plan for the full amount upfront.

Frequently asked questions

Buying your first home?

I’ll help you build a complete budget, welcome tax included, and compare over 30 lenders. Start your free pre-qualification or learn about our property purchase service.

Sources: City of Montreal (montreal.ca), Quebec City (ville.quebec.qc.ca), Government of Quebec (quebec.ca), MNP. General information as of October 23, 2026; confirm exact amounts with your municipality and Revenu Québec.