Welcome Tax
Team Angela Langtry | Real Estate Montreal by Angela Langtry
What is the Welcome Tax?
- “Welcome Tax” aka “Transfer Tax”
- Mandatory in 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.
In 2020, the Ville de Montréal added a new bracket for the basis of imposition that exceeds $2,000,000. The transfer duties for properties in Montréal are calculated as follows.
Rate per bracket – 2020 fiscal year : On that part of the basis of imposition Rate
- Which does not exceed $51,700 – 0.5 %
- Which is in excess of $51,700 but does not exceed $258,600 – 1.0 %
- Which is in excess of $258,600 but does not exceed $517,100 – 1.5 %
- Which is in excess of $517,100 but does not exceed $1,034,200 – 2.0 %
- Which is in excess of $1,034,200 but does not exceed $2,000,000 – 2.5 %
- Which exceeds $2,000,000 – 3.0 % *
- *Subject to the adoption of the municipal by-law
Example – Calculations using $790,000 as basis of imposition :
- Multiply $51,700 by 0.5 % = $258.50
- Multiply $206,900 by 1.0 % = $2,069.00
- Multiply $258,500 $ by 1.5 % = $3,877.50
- And multiply $272,900 by 2.0 % = $5,458.00
For a basis of imposition of $790,000, for 2020, total fees will be: $11,663.00
If you have any questions and would like to learn more about the current real estate market, you can reach us anytime at:
514-781-2121
info@angelalangtry.ca
