Montreal Welcome Tax (Taxe de bienvenue): How Much You'll Pay
Welcome Tax Brackets and Rates in Montreal
The welcome tax (officially called the property transfer duty or "taxe de mutation immobilière") is charged by every Quebec municipality when a property changes hands. Montreal uses progressive brackets: 0.5% on the first $58,900, 1.0% from $58,901 to $294,600, 1.5% from $294,601 to $500,000, 2.0% from $500,001 to $1,000,000, and 3.0% on anything above $1,000,000.
For a typical Montreal condo at $420,000, the welcome tax works out to approximately $4,725. For a $600,000 single-family home, you'd owe roughly $7,225. The bill arrives by mail a few months after closing, and you typically have 30 days to pay — no installment plans.
Who Is Exempt from the Welcome Tax?
A few situations qualify for an exemption. Transfers between spouses or direct-line relatives (parent to child) are exempt. So are transfers resulting from a divorce or separation agreement. If you're buying a newly built property directly from the builder and have already paid GST/QST, you still owe the welcome tax — the two are separate.
There is no first-time buyer exemption for the welcome tax in Montreal, unlike some other Canadian cities. This catches many new buyers off guard. Budget for it from the start and factor it into your closing cost calculations alongside notary fees, inspection costs, and moving expenses.
How to Budget for the Welcome Tax
Since the welcome tax bill doesn't arrive on closing day, many buyers forget to set aside funds. The best approach: ask your notary to calculate the exact amount during the closing process and transfer that sum into a separate savings account immediately. Some mortgage lenders will let you roll the welcome tax into your mortgage if you have room within your approved amount.
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When planning your overall move budget, the welcome tax is just one piece. Between the tax, notary fees, moving costs, and immediate home needs (new locks, cleaning, minor repairs), first-time buyers should keep a reserve of $10,000–$15,000 beyond their down payment. Need help with the moving piece? Up & Out provides transparent flat-rate quotes so at least that part of your budget is predictable.
