Since January 1, 2026, Quebec has a refundable tax credit that can return most or all of the welcome tax (property transfer duties) to eligible first-time buyers. On a typical Montreal condo between $400,000 and $450,000, an eligible buyer may get the full amount back. To see the tax for any price in Montreal or the other cities on the island, use the welcome tax calculator.
The catch: you still pay the city first. Here is how the numbers work, who qualifies, and how to claim.
How Montreal calculates the welcome tax
The city applies its rates to a tax base, which is the highest of three amounts: the purchase price, the amount in the deed of sale, or the municipal assessment multiplied by the comparative factor (1.00 in Montreal for 2026).
The duties are progressive. Each rate applies only to the slice of the base inside its bracket.
| Tax base (2026, Montreal) | Rate |
|---|---|
| Up to $62,900 | 0.5% |
| $62,900 to $315,000 | 1% |
| $315,000 to $552,300 | 1.5% |
| $552,300 to $1,104,700 | 2% |
| $1,104,700 to $2,136,500 | 2.5% |
| $2,136,500 to $3,113,000 | 3.5% |
| Over $3,113,000 | 4% |
The bill comes from the city after the sale is registered, and it is payable within 30 days of the billing date.
What you pay, what may come back
The credit covers 100% of the first $5,000 of duties paid, plus 25% of the next $3,500, for a maximum of $5,875. It is reduced by 2.35% of the value above $750,000 and reaches zero at $1,000,000, so it does not affect the price range in this table.
| Purchase price | Montreal duties | Maximum credit | Net cost after credit |
|---|---|---|---|
| $400,000 | $4,110.50 | $4,110.50 | $0 |
| $425,000 | $4,485.50 | $4,485.50 | $0 |
| $450,000 | $4,860.50 | $4,860.50 | $0 |
| $500,000 | $5,610.50 | $5,152.62 | $457.88 |
Welcome tax and credit calculator (Montreal, 2026)
| Tax base used | |
| Welcome tax payable to the city | |
| Maximum Quebec credit (if eligible) | |
| Net cost after credit | |
| Example: equal split between buyers | |
| Advance payment possible (credit over $1,000) |
Your assessment is higher than your price, so duties use the assessment.
You pay the city first. The credit is claimed afterwards, by advance payment request (by December 1 of the purchase year) or on your tax return. Co-buyers share one credit. Estimate only; confirm with Revenu Québec.
This assumes the price is the highest of the three amounts. If the municipal assessment is higher than your price, the duties are calculated on the assessment.
Who qualifies
In most cases, you may qualify if all of the following apply:
- First-time buyer test. You did not own, alone or with someone else, a home you lived in, from the start of the fourth calendar year before the purchase until the day before it. For a 2026 purchase, the look-back starts January 1, 2022.
- Spouse test. During your union, you also did not live in a home owned by your spouse in that same period.
- Principal residence. The property is bought to live in, and it is habitable.
- Quebec resident on December 31 of the year of purchase.
- Duties paid. You or your spouse paid the transfer duties.
Buying with someone else? Co-buyers share one credit. Two eligible buyers on the same condo cannot each claim $5,875; the total for the property cannot exceed what one person would get.
How and when to claim
- Close the purchase. The notary registers the sale.
- Pay the city's bill within 30 days of its billing date.
- Claim the credit, one of two ways:
- Advance payment: Revenu Québec opens requests in October 2026, online through Mon dossier pour les citoyens or by paper form. The credit must be over $1,000, you must accept direct deposit, and the request must be sent by December 1 of the year of purchase.
- Tax return: claim it on your Quebec return for the year of purchase. This is the route if you miss December 1 or if the credit is $1,000 or less.
If you close in late November or December, the advance window is short. Plan to pay the city quickly or expect to wait for your tax return.
A note on the Montreal program
The City of Montreal's Home Purchase Assistance Program closed to new applications on July 7, 2026. It is a separate program from the Quebec credit, and you cannot apply to it now.
Common mistakes
- Assuming it is automatic. It is not. You need to request the advance or claim it on your return.
- Co-buyer confusion. Two first-time buyers do not double the credit. Agree in writing how the one credit is split between you.
- Planning your cash as if the tax is already gone. You still need about $4,100 to $4,900 in hand to pay the city, a few weeks after closing. The refund comes later. Keep it in your budget alongside the down payment and closing costs.
- Ignoring the municipal assessment. If the assessment is above your price, your duties are higher than a price-based estimate.
- Missing the ownership look-back. A condo you owned and lived in during 2022 can make you ineligible for a 2026 purchase, even if you sold it.
Common questions
Is the welcome tax refund only for Montreal?
No. The Quebec credit applies across the province. The dollar amounts on this page use Montreal's 2026 rates.
I owned a home in 2019. Can I still qualify in 2026?
If you did not own a home you lived in at any point from January 1, 2022 onward, you may qualify. Confirm your dates with Revenu Québec.
My partner owned a condo we lived in until 2023. Does that affect me?
It may. The spouse test looks at homes owned by your spouse that you lived in during the look-back period.
I close in mid-December. Can I still get the advance?
Probably not, since the advance request is due December 1. You can still claim the credit on your tax return for that year.
When will the money arrive?
Revenu Québec has said processing details will be published when requests open in October 2026.
Planning a purchase in Montreal?
I can walk you through your budget, the welcome tax, and what cash you need on which date.
Prefer to read first? Download the first-time homebuyer kit
Related guides
Delaram Farzin, Residential Real Estate Broker (Courtière immobilière résidentielle), Groupe Sutton Centre-Ouest, real estate agency. This page is general information, not legal, tax or financial advice.
Sources: Revenu Québec (1) · Revenu Québec (2) · Finances Québec · Ville de Montréal (1) · Ville de Montréal (2)
