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 2019:

  • 0.5%    from 0$ to $50,900
  • 1%       over $50,900.01 but not exceeding $254,400
  • 1.5%    over $254,400.01 but not exceeding $503,500
  • 2%       over $503,500

 

For Example:

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

The first 50 900$ multiplied by 0,5%:            254.50$
The second 203 500$ multiplied by 1%:       2 035$
The third  251 700$ multiplied by 1,5%:        3775.50$

And the last 103 900$ multiplié par 2%:        2 078$

Consequently, the total land transfer duties (i.e. "Welcome Tax") on this property would be $8,143.

 

Angela Langtry

Angela Langtry

Real Estate Broker
CENTURY 21 Immo-Plus
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