Montreal welcome tax 2026: worked examples

The City of Montreal applies the following rates to the tax base: • 0.5% on the first $62,900 • 1% from $62,900 to $315,000 • 1.5% from $315,000 to $552,300 • 2% from $552,300 to $1,104,700 • 2.5% from $1,104,700 to $2,136,500 • 3.5% from $2,136,500 to $3,113,000 • 4% above $3,113,000 Up to $552,300, the amount is the same as under the standard provincial brackets. Above that, each extra dollar costs 2% in Montreal instead of 1.5% (or the rate, up to 3% above $500,000, adopted by other municipalities). The tax base is the highest of the price paid, the price stated in the deed and the market value (municipal assessment × comparative factor, which is 1.00 in Montreal for 2026).

• $350,000 condo: $314.50 + $2,521 + $525 = $3,360.50 • $450,000 house: $314.50 + $2,521 + $2,025 = $4,860.50 • $550,000 property: $314.50 + $2,521 + $3,525 = $6,360.50 • $650,000 property: $314.50 + $2,521 + $3,559.50 + $1,954 = $8,349 ($7,860.50 under provincial brackets) • $800,000 property: $314.50 + $2,521 + $3,559.50 + $4,954 = $11,349 ($10,110.50 elsewhere under standard brackets) • $1,200,000 property: $19,825.50 ($16,110.50 under standard brackets) For an $800,000 property, the gap with the provincial brackets is $1,238.50. You can redo these calculations for any price with our welcome tax calculator.

Announced on April 17, 2026, this refundable Quebec tax credit refunds the transfer duties paid on a first home acquired on or after January 1, 2026: • 100% of the first $5,000 of duties paid; • plus 25% of the next $3,500, or up to $875 more; • for a maximum of $5,875. The credit is reduced by 2.35% of the portion of the tax base above $750,000 and reaches zero at $1,000,000. If several people buy together, they share a single credit. A home is a first home for someone who has not owned a home they lived in since the beginning of the fourth calendar year before the purchase (the same rule applies to a spouse for a home lived in during the relationship). The buyer or their spouse must have paid the duties.

• $350,000: duties $3,360.50, credit $3,360.50, left $0 • $450,000: duties $4,860.50, credit $4,860.50, left $0 • $550,000: duties $6,360.50, credit $5,340.13 ($5,000 + 25% of $1,360.50), left $1,020.38 • $650,000: duties $8,349, credit $5,837.25, left $2,511.75 • $800,000: duties $11,349, credit $4,700 ($5,875 minus 2.35% of $50,000), left $6,649 • $1,200,000: duties $19,825.50, no credit Note: you must pay the City's bill first. The credit is then claimed on your tax return, or through an advance payment (see below). Keep the full amount in cash at closing.

Revenu Québec lets you claim the credit in advance, by direct deposit, if all these conditions are met: • you live in Quebec when you apply; • you or your spouse paid the transfer duties; • the tax base does not exceed $1,000,000; • the estimated credit exceeds $1,000. The request must be made by December 1 of the purchase year. According to Quebec's Finance Department, advance payments are available starting in October 2026. Note: the City of Montreal's home-purchase assistance program (Programme d'appui à l'acquisition résidentielle) stopped accepting new applications on July 7, 2026; applications received before that date are processed by the end of 2026.

The buyer pays, not the seller. The City sends the bill after the deed of sale is registered in the land register, usually a few weeks after signing at the notary's office. The amount is usually not financed by the mortgage. To build your full budget, add the welcome tax to the other costs (notary, inspection, mortgage loan insurance and its 9% tax payable in cash) and check your budget with the mortgage affordability calculator and the mortgage calculator.