Welcome Tax

Welcome Tax is the everyday name for Quebec's municipal transfer duty, the tax a buyer pays to the municipality when ownership of an immovable (real property) changes hands. Its formal French name is droits de mutation immobilière, and the nickname reflects the bill that reaches the new owner weeks after the move rather than at the notary's office.

How the amount is determined

The duty is calculated on the greater of the purchase price and the value shown on the municipal assessment roll, adjusted by the comparative factor the municipality publishes. A tiered rate structure set by provincial law applies, with higher brackets taxed at higher rates, and some municipalities add their own surcharge brackets. Because rates, brackets and the comparative factor change over time, confirm the current figures with the municipality where the property sits instead of relying on an older estimate.

When and how it is paid

Unlike the land transfer tax that lawyers and notaries collect at closing in several provinces, Quebec's duty is billed by the municipality directly, usually a few weeks to a few months after the transfer is registered. The buyer is responsible for it, and the amount is normally due in a single payment, though some municipalities allow an instalment arrangement. Missing the deadline can trigger interest or penalties.

Exemptions and first-time buyer relief

Certain transfers are exempt or partially exempt, including some transfers between related persons, transfers following a death, and a limited credit or exemption for first-time buyers who meet specific conditions. Eligibility rules are narrow and fact-specific. Confirm whether a transaction qualifies with the municipality, Revenu Québec, or a notary before assuming any relief applies.

Why it matters when you buy in Quebec

The welcome tax is one of the largest single closing costs in the province and is often left out of a budget that already covers the down payment, notary fees, adjustments and moving costs.

It is separate from the property transfer tax used in British Columbia and from the land transfer taxes used elsewhere.
It is also separate from annual municipal property tax.
Estimate it early with a land transfer tax calculator and work it into a closing costs budget.

Frequently asked questions

Who pays the welcome tax in Quebec?

The buyer pays it. When a property changes hands, the municipality issues the transfer duty bill in the new owner's name, usually a few weeks to a few months after the notary registers the sale. The seller is not responsible for it, and the amount is not normally collected at the notary's office the way land transfer tax is in some other provinces.

Is the welcome tax the same as land transfer tax?

They are similar in purpose but different in design. Quebec's welcome tax is a municipal transfer duty levied on the greater of the price paid and the assessment roll value, using tiered brackets set by provincial law. Land transfer tax is the term used in Ontario and several other provinces, while British Columbia uses property transfer tax.

Do first-time buyers pay the welcome tax in Quebec?

Many do, but a limited exemption or credit exists for first-time buyers who satisfy specific conditions, including not having owned a qualifying residential property during a set period. Rules are narrow and depend on the property and the buyer's situation. Confirm eligibility with the municipality, Revenu Québec or a notary before relying on it.