The welcome tax in Quebec is the transfer tax a buyer pays to the municipality when a property changes hands. Its official name is the droits de mutation immobilière, and most people call it the taxe de bienvenue. It arrives as an invoice a few weeks after you sign at the notary, it cannot be added to your mortgage, and on a typical Montreal purchase it runs to several thousand dollars. On a $600,000 home in Montreal it is $7,349 in 2026.
This guide sets out the 2026 brackets, shows how the calculation works line by line, compares Montreal, Westmount and Côte-Saint-Luc at the same prices, and explains the new Quebec credit that now refunds part of the welcome tax for first-time buyers. It was updated on September 28, 2026 to reflect the 2026 thresholds and the end of Montreal's municipal first-time buyer program.
Who pays the welcome tax, and when
The buyer pays it. The seller does not, and it is not included in the purchase price. The municipality where the property is located sends the bill after the notary registers the sale, usually within a few weeks of closing. In Côte-Saint-Luc, for example, it is payable within 30 days of the invoice.
Because the invoice comes after closing, buyers sometimes forget it in their budget. It has to be paid in cash from your own funds. Lenders do not finance it, so plan for it at the same time as your down payment, not afterwards.
The 2026 welcome tax brackets
The Quebec government sets the base brackets and indexes the first two thresholds every year. For 2026 they are:
- 0.5% on the first $62,900
- 1% on the portion from $62,900 to $315,000
- 1.5% on the portion above $315,000
Municipalities may add higher rates on the portion of a price above $500,000, up to 3%. Montreal has its own rules and can go higher. Many municipalities use this power, so the bill depends on where the property is, not only on the price.
City of Montreal brackets for 2026
The City of Montreal, which includes boroughs such as NDG, the Plateau, Verdun, Rosemont and Ville-Marie, applies:
| Portion of the price | 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% |
| Above $3,113,000 | 4% |
Only the first two thresholds are indexed each year. Montreal's four upper thresholds are the same figures it used in 2025.
Westmount and Côte-Saint-Luc
Westmount and Côte-Saint-Luc are separate municipalities on the island and set their own upper brackets:
- Westmount: 1.5% from $315,000 to $500,000, then 3% on everything above $500,000.
- Côte-Saint-Luc: 1.5% from $315,000 to $800,000, 2.5% from $800,000 to $3,000,000, and 3% above $3,000,000.
How the welcome tax is calculated
The tax is calculated on the highest of three amounts: the price paid, the value of any other consideration, and the market value of the property based on the municipal assessment adjusted by the province's comparative factor. For a normal sale at market price, the purchase price is usually the basis.
Each rate applies only to the portion of the price inside its bracket. Here is a $600,000 purchase in Montreal:
- 0.5% of the first $62,900: $314.50
- 1% of the next $252,100 (to $315,000): $2,521.00
- 1.5% of the next $237,300 (to $552,300): $3,559.50
- 2% of the remaining $47,700: $954.00
Total: $7,349.
Welcome tax at common prices, by municipality
The same price produces a different bill depending on where the home is. The first column applies only the provincial base brackets, which is what you pay in a municipality that has not added higher rates.
| Purchase price | Provincial brackets only | Montreal | Westmount | Côte-Saint-Luc |
|---|---|---|---|---|
| $300,000 | $2,686 | $2,686 | $2,686 | $2,686 |
| $450,000 | $4,860 | $4,860 | $4,860 | $4,860 |
| $600,000 | $7,110 | $7,349 | $8,610 | $7,110 |
| $750,000 | $9,360 | $10,349 | $13,110 | $9,360 |
| $1,000,000 | $13,110 | $15,349 | $20,610 | $15,110 |
| $1,500,000 | $20,610 | $27,326 | $35,610 | $27,610 |
Below $500,000 the bill is identical everywhere. Above it, the gaps widen quickly. At $1,000,000, a Westmount buyer pays $5,262 more than the same purchase in a Montreal borough. Our guide to Westmount property taxes and carrying costs goes through the full cost of owning there, and the Côte-Saint-Luc neighbourhood page covers the welcome tax on the next purchase for sellers who are downsizing. For any other price, or any of the 14 other cities on the island, use the welcome tax calculator.
First-time buyers: the new Quebec credit replaces Montreal's refund
Until this summer, the City of Montreal ran its own first-time buyer program, the Programme d'appui à l'acquisition résidentielle, which could refund part of the welcome tax. The city closed it to new applications on July 7, 2026. Files received before that date are processed until the end of 2026.
It has been replaced by a provincial measure: the refundable tax credit for access to home ownership, announced by the Quebec finance ministry in April 2026. It applies to homes acquired from January 1, 2026, anywhere in Quebec, not only in Montreal.
- Amount: 100% of the first $5,000 of welcome tax paid plus 25% of the next $3,500, up to $5,875.
- Reduction: the credit falls by 2.35% of the property value above $750,000 and reaches zero at $1,000,000.
- Who qualifies: a first-time buyer acquiring a principal residence. Neither the buyer nor their spouse can have lived in a home they owned in the year of purchase or the four years before.
- How to claim: on your Quebec tax return, or as an advance payment during the year if the credit is more than $1,000 and you have direct deposit with Revenu Québec. The advance must be requested by December 1.
On a $600,000 Montreal purchase, the credit is $5,587, which leaves $1,762 of welcome tax to pay. On a $450,000 purchase, it covers the entire $4,860. Our full guide to the 2026 first-time buyer welcome tax credit has the table by price and the eligibility details.
The credit is paid after you pay the welcome tax. Budget the full invoice first.
Exemptions
Some transfers are exempt from the welcome tax, for example certain transfers between spouses and between parents and children, and some transfers within a family. The conditions are specific and are applied by the notary when the deed is prepared. If you think your transfer may qualify, raise it with the notary before signing. The rules for exemptions are set by provincial law, and the municipality issues the invoice on the basis of what the notary declares.
How to budget for the welcome tax
- Calculate it for the municipality you are buying in, not with a generic calculator. The difference between Montreal and Westmount at $750,000 is $2,761.
- Keep it in cash, separate from your down payment. Your lender will confirm the down payment, but no one checks that you have kept the welcome tax aside.
- If you are a first-time buyer, count the credit as a refund, not a discount. It comes back as an advance or on your tax return.
- Add the other closing costs. The notary, the inspection, the tax adjustments and, if you put less than 20% down, the 9% Quebec tax on your CMHC premium, which is due in cash at the notary. Our list of closing costs for first-time buyers in Quebec covers each one.
For a sense of what the welcome tax and the other costs add up to in one neighbourhood, see what your budget buys in NDG in 2026, and the NDG neighbourhood page for current prices. When you are ready to plan a purchase, the buyer page explains how I work.
Welcome tax questions
How much is the welcome tax on a $500,000 home in Quebec?
$5,610 under the 2026 provincial brackets, and the same in Montreal, Westmount and Côte-Saint-Luc, since their higher rates start above $500,000.
Can the welcome tax be added to my mortgage?
No. It is billed by the municipality after closing and paid from your own funds.
Does Montreal still refund the welcome tax for first-time buyers?
No. The city closed its program to new applications on July 7, 2026. First-time buyers now claim the Quebec refundable credit instead, worth up to $5,875.
When do I receive the welcome tax bill?
Usually a few weeks after the sale is registered. Check the due date on the invoice. Côte-Saint-Luc, for example, gives 30 days.
Why is the welcome tax higher in Westmount?
Westmount charges 3% on the portion of the price above $500,000. Montreal charges 2% up to $1,104,700 and Côte-Saint-Luc 1.5% up to $800,000.
Is the welcome tax based on the price or the municipal assessment?
On the higher of the price and the adjusted market value from the assessment. In a normal sale at market price, that is usually the price.
Sources: Government of Quebec, droits de mutation immobilière (2026 thresholds); City of Montreal, 2026 welcome tax brackets and Programme d'appui à l'acquisition résidentielle (updated July 7, 2026); City of Westmount, welcome tax table; City of Côte-Saint-Luc, 2026 duties on transfer of an immovable; Revenu Québec, refundable tax credit for access to home ownership (April 21, 2026); Ministère des Finances du Québec, technical bulletin (April 17, 2026).
