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Welcome Tax

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Welcome Tax

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