What is the welcome tax in Montreal?

The welcome tax, officially called the land transfer duty or taxe de bienvenue, is a one-time tax paid by buyers in Quebec when a property is transferred. In Montreal, the rate increases with the purchase price: 0.5 percent on the first portion, one percent on the middle portion, and 1.5 percent on amounts above $500,000, with an additional 3 percent on amounts above roughly $1 million for non-residential properties. For a full picture of buyer closing costs, see what buyers pay at closing in Montreal.

The welcome tax is billed by the municipality a few months after closing, so buyers need to budget for it separately from immediate closing costs. Your notary can give you a precise estimate before you complete the purchase. Find a real estate agent in Montreal who can walk you through all closing costs.