How to Calculate Trasfer Taxes in Montreal

One of the first questions I'm asked while conducting a sale is "How much is my Welcome Tax going to be??" I just had a closing today at the notary and my client who almost choked when he saw how much he had to pay mentioned, " Ya! Great Welcome tax! This is the 3rd home I've bought in Cote St Luc and they keep welcoming me!?!"

The Land Transfer Tax, better known as, "Welcome Tax", came into existance when Minister Bienvenue made recommendations leading to the collection of transfer duties by Quebec municipalities. Every municipality must collect duties on the transfer of any immovable situated within its territory. This tax is payable by the buyer and is calculated as follows:

  • 0.5% of the first $50,000;
  • 1% of the next $50,000 to $250,000;
  • 1.5% of the next $250,000 to $500,000.
  • 2% of any portion exceeding $500,000

As an example, taxation on a property value of $180,000 calculated on the above scale would be as follows:

The first $50,000 multiplied by 0.5% = $250

The next $130,000 multiplied by 1.0% = $1,300

(1.5% fr om $250,000 to $500,000 = n/a)

(2% of the portion exceeding $500,000=n/a)

Total = $1,550

As an 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 1.0% = $2,000
The next $250,000 multiplied by 1.5% = $3,750
The last $110,000 multiplied by 2% = $2,200

Total = $ 8,200

For more information on the land transfer duties payable on a given transaction, please contact the municipality concerned.

Jennifer Radowitz

Jennifer Radowitz

Real Estate Broker
CENTURY 21 Vision
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