Most people know they’ll have to pay a “welcome tax” when they buy a property, but they may not know that there are exceptions. In 2026, for example, first-time home buyers may get some of it back.
Normally, you must pay the welcome tax when you buy a property
The property transfer duty, known as the “welcome tax,” is a municipal tax that must be paid when a property changes owners. The person or people buying the property must pay it.
You must pay the welcome tax when you buy:
- a house,
- a condo,
- a cottage,
- an investment property.
The amount you must pay depends mainly on the value of the property. The tax is calculated using different value brackets and rates set by law. Some cities, including Montreal and Quebec City, may charge higher rates than the basic rates set by law.
The tax is calculated based on the highest of these amounts:
- the purchase price,
- the market value,
- the amount indicated on the municipal property assessment roll.
Want to know how much you may need to pay? Many municipalities and organizations offer online calculators to help you get an estimate.
Your municipality generally sends you the bill one to three months after you sign the deed of sale. The timeline is different from one municipality to another.
You normally have 30 days to pay the tax. Some municipalities allow you to pay in instalments. Check the rules for your municipality, for example by visiting your municipality’s website.
Several buyers, same rules
Buying a property with someone else doesn’t reduce the amount of the welcome tax. The tax is calculated based on the value of the transaction, not the number of buyers.
Also, the new co-owners are solidarily responsible for payment. This means that if the tax isn’t paid, the municipality can claim the whole amount from any of the co-owners.
In some cases, you don’t have to pay the welcome tax
The law lists many situations where you don’t have to pay the welcome tax. For example:
- If you inherit a property. Since 2026, you don’t have to pay the welcome tax on a property you inherit, no matter what your relationship to the deceased.
- If you buy your spouse, partner or ex’s share of the property where you live.
- If you buy property from certain family members, like your child, your parent, or your grandparent.
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Important! Even if you don’t have to pay the welcome tax, you may have to pay a “supplementary fee.” This amount is generally no more than $200. |
You may get a refund if you’re buying your first property in 2026
Good news if you’re buying your first property in 2026: you may be able to get a refund on the welcome tax of up to $5,875 thanks to a new provincial tax credit.
Generally speaking, this credit is available to people buying their first primary residence in 2026, if the property is worth under 1 million dollars.