Mortgage, Welcome Tax, and Affordability Calculator

 

 

The Welcome Tax is the same as Land Transfer Tax

 

 

Since January 1, 1992, every Quebec municipality must collect duties on the transfer of any immovable situated within its territory. This tax is payable by the buyer and and is calculated as follows:

 

  • 0.5% of the first portion not exceeding $50,000;
  • 1% of the portion exceeding $50,000 but not exceeding $250,000;
  • 1.5% of the portion exceeding $250,000;
  • 2% of the portion exceeding $500,000 (only on the territory of the City of Montréal)*;
  • 2.5% of the portion exceeding $1,000,000 (only on the territory of the City of Montréal)*
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Example:

A property is sold for $265,000.
The value of the property entered on the property assessment roll is $260,000 and the comparative factor is 1.02. The basis of imposition is therefore established at $265,200, i.e. the highest of the sale price ($265,000) and the market value of the property (Value of the property entered on the property assessment roll multiplied by the comparative factor: $260,000 x 1.02 = $265,200). The transfer duties payable to the municipality will total $2,478, i.e.:

The first $50,000 multiplied by 0.5 = $250
The following $200,000 multiplied by 1 = $2,000
The $15,200 remaining multiplied by 1.5 = $228