How much is the welcome tax in Montréal?

Montréal applies a progressive transfer tax in brackets ranging from 0.5% up to 3.5% on the highest portion of the purchase price. On a $750,000 purchase the tax is roughly $11,475; on $1,000,000 it is roughly $17,725; on $1,500,000 it is roughly $34,725. The Ville de Montréal uses the higher of the purchase price or the municipal evaluation adjusted by a comparative factor.

When do I actually pay the Montréal welcome tax?

The city sends the bill 3 to 6 months after closing. It is a single lump-sum payment — not rolled into your mortgage, not collected by the notary at signing. Budget for it the day you close so you are not caught short.

Are there exemptions to the welcome tax in Québec?

Yes. The most common exemptions are transfers between spouses (including common-law partners after the qualifying period), transfers in the direct line of ascent or descent (parents/children/grandparents), and certain corporate restructurings. Montréal also offers a Home Ownership Program rebate on the welcome tax for eligible first-time buyers of new construction up to set price caps — eligibility and amounts change, so confirm before closing.

Is the welcome tax different in Laval, the West Island, Westmount or Hampstead?

The Québec-wide brackets up to 1.5% are the same everywhere. Above that, municipalities set their own top rates: Ville de Montréal goes to 3.5%, Westmount and Hampstead apply additional higher brackets, and Laval and most West Island municipalities currently top out lower. On a $2M+ home the difference between municipalities can be tens of thousands of dollars.

Is the welcome tax based on the purchase price or the municipal evaluation?

It is calculated on the highest of three values: the purchase price, the amount written in the deed of sale, or the municipal evaluation multiplied by the comparative factor for that year. In rising markets the purchase price is almost always the highest, so that is what you pay on.

Montréal Welcome Tax 2026: Brackets, Calculator & What Buyers Actually Pay

Almost every Montréal buyer hears the words taxe de bienvenue for the first time about a week before closing — usually from their notary, and usually with a number attached that feels alarming. The "welcome tax" (officially the droit de mutation immobilière) is not a welcome gift. It is a municipal transfer tax, you pay it once, and on most Montréal purchases it lands between five figures and the cost of a small renovation.

The short version

The welcome tax is a progressive municipal tax on every real-estate transfer in Québec. It is calculated on the highest of: the purchase price, the consideration in the deed of sale, or the municipal evaluation × the year's comparative factor. In a rising market that's almost always the purchase price. The city bills you 3–6 months after closing, in one lump sum, and your notary does not collect it at signing.

2026 Ville de Montréal brackets

The first three brackets are set province-wide. Above $500,000, each municipality is allowed to set its own rates. Ville de Montréal goes the highest of any large municipality in Québec.

Portion of price	Rate
$0 — $58,900	0.5%
$58,900 — $294,600	1.0%
$294,600 — $552,300	1.5%
$552,300 — $1,104,700	2.0%
$1,104,700 — $2,136,500	2.5%
$2,136,500 — $3,113,000	3.0%
$3,113,000 and above	3.5%

Indexed thresholds — Ville de Montréal updates the bracket cutoffs annually. Always confirm with your notary at closing.

What you'd actually pay

$500,000 purchase — approximately $5,536.
$750,000 purchase — approximately $11,475.
$1,000,000 purchase — approximately $17,725.
$1,500,000 purchase — approximately $34,725.
$2,500,000 purchase — approximately $66,650.

These are Ville de Montréal numbers. The same purchase in Laval, Dorval or Pointe-Claire will usually come out a few thousand dollars lower at the higher brackets; in Westmount or Hampstead, a few thousand higher.

When the bill actually arrives

This is what trips buyers up. The notary handles your land-transfer paperwork at closing, but the city doesn't issue the tax invoice until 3 to 6 months later — and it's payable in a single lump sum, typically within 30 days. It is not added to your mortgage. It is not collected upfront. It hits your bank account half a year after you've moved in, often the same month you're already paying first-year condo fees, school tax adjustments and an unexpected repair.

The fix is boring and works every time: the day you close, move the welcome-tax amount into a separate savings account and forget it exists.

Exemptions most buyers miss

Spousal transfers. Transfers between spouses — married, civil-union, or common-law partners after the qualifying cohabitation period — are exempt.
Direct family line. Transfers between parents and children, grandparents and grandchildren are exempt. Siblings are not.
First-time buyers of new construction. The Ville de Montréal Home Ownership Program offers a welcome-tax rebate (and in some cases additional refunds) for eligible first-time buyers of new condos and houses up to set price caps. Eligibility and caps change — confirm before you sign.
Corporate restructurings. Specific intra-group transfers can qualify; this is a notary/tax-lawyer conversation, not a DIY one.

Montréal vs Laval vs West Island vs Westmount

The first three brackets (up to 1.5%) are identical across Québec. Above $500K, municipalities diverge:

Ville de Montréal: tops out at 3.5% — the highest among large Québec cities.
Westmount & Hampstead: apply additional higher brackets; on luxury purchases the bill can exceed Montréal proper.
Laval & most West Island municipalities (Pointe-Claire, Dorval, Kirkland, Beaconsfield): top rates are currently lower. On a $1.5M purchase the difference vs Ville de Montréal can be $3,000–$8,000.

This is rarely the reason to choose a neighbourhood, but for borderline decisions on a high-value home, it is a real number to put in the spreadsheet.

Where it fits in your total closing budget

The welcome tax is the largest post-closing cost most buyers face. Alongside it, plan for:

Notary fees: typically $1,200–$2,000 for a standard residential transaction.
Home inspection: $500–$900 for a condo, more for a house or plex.
Adjustments at closing: reimbursing the seller for prepaid school tax, municipal tax and condo fees.
Moving + immediate repairs: set aside 1–2% of the purchase price.

A simple rule that has saved a lot of clients heartburn: set aside 2% of the purchase price in cash, after down payment, for the welcome tax and closing extras combined. If you come in under, that's vacation money.

FAQ

Can I roll the welcome tax into my mortgage?

No. It is billed and paid separately, in cash.

Is the welcome tax deductible?

Not for a principal residence. For an investment property it is added to the cost base, which reduces eventual capital gains when you sell.

What happens if I don't pay it?

Interest accrues quickly and the city can register a legal hypothec on the property. Always pay it.

Does it apply to a transfer from a parent?

Generally exempt — but the deed has to be structured correctly. Tell your notary up front.

Bottom line

The welcome tax is not negotiable, but it is predictable. Calculate it the day you make an offer, set the cash aside at closing, and ask your notary about exemptions before the deed is drafted. The buyers who get blindsided are the ones who only learn the number after they've already stretched their down payment to the dollar.

The Montréal welcome tax, decoded.