Welcome Tax

 

What is the Welcome Tax?

  • "Welcome Tax" aka "Transfer Tax"
  • Mandatory Quebec tax since 1992
  • Based on the selling price or city evaluation (whichever is higher)
  • Paid by the buyer
  • After you have signed at a notary's office, you will receive an invoice in the mail from the municipality within 30 days.  You will then have 30 days to pay it.

 

Here's how the Welcome Tax is calculated:

  • 0.5%    from 0$ to $50,000
  • 1%       over $50,000 but not exceeding $250,000
  • 1.5%    over $250,000 but not exceeding $500,000
  • 2%       over $500,000

 

For Example:

Taxation on a property value of $610,000 calculated on the above scale would be as follows:

The first $50,000 multiplied by 0.5%:      $250
The next $200,000 multiplied by 1%:      $2,000
The next $250,000 multiplied by 1.5%:   $3,750
The last $110,000 multiplied by 2%:       $2,200

Consequently, the total land transfer duties (i.e. "Welcome Tax") on this property would be $8,200.

 

Angela Langtry

Angela Langtry

Real Estate Broker
CENTURY 21 Immo-Plus
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