The welcome tax — officially the droits de mutation immobilière, nicknamed "taxe de bienvenue" after Jean Bienvenue, the minister who introduced it in 1976 — is the single biggest closing cost on a Quebec property purchase. On a $625,000 Montréal duplex, it adds up to about $5,728. On a $1.5M Plateau triplex, it's over $24,000. And it doesn't show up at the notary's office — it lands in your mailbox three to six months after closing.
This guide walks through how the welcome tax actually works in 2026: the provincial brackets, where Montréal and Québec City charge more, what's exempt, and how to budget for it before you sign.
What the welcome tax actually is
Every time real estate changes hands in Quebec, the buyer's municipality charges a one-time tax on the transfer. The province sets baseline brackets that apply everywhere; municipalities can then layer their own higher rates on top of the provincial schedule for the portion of the price above $552,300. Most don't bother — they default to the provincial 1.5%. Montréal and Québec City do, and aggressively.
A few things to know about how it works:
- It's billed by the city, not collected by the notary. Most cities take 3 to 6 months after closing to send the invoice. Notaries usually estimate it on your closing disclosure so you can budget — but you pay nothing for it on closing day itself.
- It's due in one payment. No instalments. If the bill is $7,500, that's $7,500 you need available the day it shows up.
- It's not financed. Lenders don't include welcome tax in mortgage proceeds. You need cash or a HELOC.
- It's not deductible as an expense, but it is added to your property's adjusted cost base (ACB), which reduces your eventual capital gain when you sell.
The provincial brackets (2025/2026)
The Quebec government sets the base schedule and indexes the bracket thresholds annually based on inflation. The 2025 brackets — still in force at the time of writing in 2026 — are:
| Portion of purchase price | Rate |
|---|---|
| $0 to $58,900 | 0.5% |
| $58,900 to $294,600 | 1.0% |
| $294,600 to $552,300 | 1.5% |
| Above $552,300 (provincial default) | 1.5% |
These percentages apply to each portion of the price within that bracket, not the entire price. So a $400,000 property pays 0.5% on the first $58,900 (= $294) plus 1.0% on the next $235,700 (= $2,357) plus 1.5% on the remaining $105,400 (= $1,581) for a total of $4,232.
Where Montréal and Québec City layer on more
Provincial law lets municipalities set higher rates on the portion of the price above $552,300 by bylaw. Two cities use that authority aggressively.
Montréal — top to 4.0%
| Portion of purchase price | Rate |
|---|---|
| $552,300 to $1,104,700 | 2.0% |
| $1,104,700 to $2,136,500 | 2.5% |
| $2,136,500 to $3,113,000 | 3.5% |
| Above $3,113,000 | 4.0% |
Québec City — top to 3.0%
| Portion of purchase price | Rate |
|---|---|
| $552,300 to $1,104,700 | 2.0% |
| $1,104,700 to $2,000,000 | 2.5% |
| Above $2,000,000 | 3.0% |
Other Quebec cities (Laval, Longueuil, Gatineau, Sherbrooke, etc.) stick with the provincial default of 1.5% above $552,300. The practical impact: a $1,500,000 Plateau triplex pays roughly $2,300 more in welcome tax than the same property in Laval would.
Quebec welcome tax calculator
Punch in your purchase price and pick a city to see the bracket-by-bracket breakdown.
Open the calculatorReal-world examples
Three concrete scenarios at typical Quebec price points:
$425,000 Sherbrooke duplex
Sherbrooke uses the provincial default. 0.5% on first $58,900 = $294. 1.0% on $235,700 = $2,357. 1.5% on $130,400 = $1,956. Total: $4,607.
$725,000 Mile End triplex
Montréal brackets. Provincial portion: $294 + $2,357 + $3,866 = $6,517. Plus the Montréal 2.0% top tier on $172,700 above $552,300 = $3,454. Total: $9,971.
$1,800,000 Outremont single-family
Welcome tax climbs through every Montréal bracket. Provincial: $6,517. Montréal 2.0% on $552,400 (from $552,300 to $1,104,700) = $11,048. Montréal 2.5% on $695,300 (from $1,104,700 to $1,800,000) = $17,383. Total: $34,948.
Who's exempt
Quebec law carves out a handful of narrow exemptions. The most common ones:
- Transfers between spouses or de facto partners (married, civil union, or common-law of at least 12 months).
- Transfers from an estate to a direct descendant (parent to child, grandparent to grandchild).
- Transfers between certain related corporations, where one entity owns at least 90% of the voting shares of the other before and after the transfer.
- Transfers to or from a registered charity.
- Some agricultural property transfers if the buyer continues to farm.
Notably absent: there is no first-time home buyer rebate for Quebec welcome tax (unlike Ontario or BC, which both offer up to ~$4,000 in relief). Quebec first-time buyers pay the full bill.
When you actually pay
The municipality has up to 5 years from the date of registration to send the bill, but in practice almost every city sends it within 6 months. Once you receive the invoice, you typically have 30 days to pay before interest starts accruing (rates vary by city — Montréal charges 9% as of 2025).
One trap that catches first-time buyers: they spend the welcome tax money. Six months after closing, the bill arrives and the cash is gone. Earmark it the day you sign at the notary's.
How to budget for it before signing
A simple rule of thumb: welcome tax is roughly 1% to 2.5% of purchase price in Quebec. For most non-Montréal residential deals, expect about 1% to 1.3%. Inside Montréal city limits, expect 1.4% to 2.0% on the typical $500k–$900k range. Above $1M in Montréal, the marginal brackets push that toward 2.5%+.
For a precise number — including a per-bracket breakdown that matches what your notary will quote — use the calculator linked above. It uses the current 2025 schedule and the Montréal / Québec City top tiers.
Welcome tax in context
The welcome tax is the largest line on a typical Quebec closing, but it's not the only one. A complete Quebec closing-cost budget includes:
- Welcome tax: 1% to 2.5% of purchase price (this article).
- Notary fees: $1,200 to $2,000 for a standard residential transaction.
- Home inspection: $500 to $800. Skippable for new builds.
- Title insurance: $200 to $400 (optional but commonly required by insured-mortgage lenders).
- Tax adjustments: $500 to $2,000 depending on closing date — you reimburse the seller for prepaid municipal and school taxes covering periods after closing.
For new construction, add GST (5%) and QST (9.975%) on the pre-tax price, partially offset by the federal and Quebec New Housing Rebates if you're an owner-occupier.
Quebec closing costs calculator
Roll up welcome tax, notary, inspection, title, and adjustments to see your true cash-to-close.
Open the calculatorQuick answers
Can I roll welcome tax into my mortgage?
Almost never. Lenders don't finance closing costs, and welcome tax in particular arrives months after the mortgage funds. You need cash or a HELOC.
Do I pay welcome tax on a refinance?
No. Welcome tax only applies to a transfer of ownership. Refinancing keeps the same owner — only the mortgage changes — so no welcome tax is owed.
What if I'm buying a property with a partner?
The welcome tax is calculated on the total purchase price regardless of the number of buyers. There's no per-buyer discount. The bill arrives in the name of the registered owners; how you split it is between you.
What if my municipality doesn't appear in the calculator?
If you're not in Montréal or Québec City, pick "Other Quebec municipality" — that applies the provincial 1.5% default above $552,300, which is what almost every other Quebec city uses. A handful of municipalities have set higher tiers by bylaw; check with your notary if you're closing on a high-value property in a smaller city.
Bottom line
Welcome tax is the most predictable line on your Quebec closing budget — the brackets are public and the math is straightforward — but it's also the easiest to under-budget for, because it doesn't show up at the notary's office. Run the calculator before you sign, set the cash aside the day you close, and you'll never be surprised by what shows up in the mail four months later.