Quebec First-Time Buyer Tax Credit: Up to $5,875

If you are buying your first property this year, there is good news: Quebec has introduced a refundable tax credit for home ownership that refunds a good part of the land transfer duties, the famous "welcome tax." Here are the essentials, based on the official documents from the Ministère des Finances and Revenu Québec.

Who is this tax credit for?

The credit applies to eligible homes acquired after December 31, 2025. It is aimed mainly at first-time buyers. According to Revenu Québec, you are considered a first-time buyer if you did not own a dwelling that you occupied during the period that begins at the start of the fourth calendar year before the purchase and ends at the time of the acquisition. The same condition applies to your spouse.

• You must be a resident of Quebec at the end of the taxation year.
• You (or your spouse) must intend to live in the home as your principal residence no later than one year after the acquisition.
• You or your spouse must have paid the land transfer duties.
• A special case also exists for buying a home that is more accessible or better adapted for a person with a disability, even if it is not a first purchase.

The home (house, condo, duplex, triplex, etc.) must be located in Quebec. The acquisition takes place on the first day that your right is registered in the land register and the dwelling is habitable.

How much can you receive?

The maximum credit is $5,875. It is calculated as follows, based on the land transfer duties you paid:

1. 100% of the first $5,000 of land transfer duties;
2. 25% of the next $3,500 (up to $875 more).

In other words, if your welcome tax is $5,000 or less, it is refunded in full. The maximum is reached when the duties paid reach $8,500.

The reduction based on the property's value

The credit is reduced by 2.35% of the portion of the land transfer duties tax base that exceeds $750,000. It therefore becomes zero at $1,000,000. The tax base is the highest of the price paid, the price stated in the deed and the market value of the property, so it is not always the purchase price.

Supplementary duties are not eligible. If several buyers are entitled to the credit for the same home, their total cannot exceed the amount a single person would have received.

Three worked examples

The duty amounts below are calculated with the 2026 scale (0.5% up to $62,900, 1% from $62,900 to $315,000, 1.5% above that) and, for Brossard, with the municipal rate of 3% above $500,000.

Situation	Land transfer duties	Tax credit
$400,000 purchase (provincial scale)	$4,110.50	$4,110.50 (full refund)
$600,000 purchase in Brossard	$8,610.50	$5,875 (maximum)
$850,000 purchase (duties of more than $8,500)	more than $8,500	$5,875 − $2,350 = $3,525

For the third case: $850,000 − $750,000 = $100,000; 2.35% × $100,000 = $2,350 reduction. To estimate the welcome tax in your city, use my welcome tax calculator.

How do you claim the credit?

The credit is claimed in your Quebec income tax return for the year in which the home was acquired (the 2026 return for a purchase made in 2026).

The advance payment: apply before December 1

You do not have to wait for your tax return. Revenu Québec allows you to request an advance payment, in a single payment by direct deposit, if:

• you are a resident of Quebec at the time of the request;
• the land transfer duties have been paid in full;
• the tax base of the home does not exceed $1,000,000;
• you estimate that you are entitled to a credit of more than $1,000;
• you are registered for direct deposit.

The request is made with form TPZ-1029.AP, online in My Account for individuals or by mail, with a copy of the land transfer duties bill. Only one person can make the request for a given home, and the deadline is December 1 of the relevant year, that is, December 1, 2026 for a purchase made this year. The amount received in advance must then be reported in your income tax return.

The link with the welcome tax

You first pay the welcome tax to your municipality, and then Quebec refunds it to you in whole or in part. So plan for it in your starting budget, along with your down payment and notary fees. For financing, see my mortgage calculator or request a mortgage pre-approval.

In summary

For many first-time buyers, this credit can cover a large part, or even all, of the welcome tax. Confirm your eligibility with Revenu Québec or your tax advisor. If you are preparing a first purchase and want to estimate all of your costs, I would be happy to talk it over with you: contact me.

Sources: Revenu Québec, tax news of April 21, 2026; Revenu Québec, advance payment; Ministère des Finances, explanatory document.

Frequently asked questions

I have never owned a home, but my spouse did two years ago. Am I eligible?

Probably not: according to Revenu Québec, the first-time buyer condition also applies to your spouse. Neither you nor your spouse can have owned a dwelling that you occupied since the start of the fourth calendar year before the purchase. Check your specific situation with Revenu Québec.

Does the credit apply if I buy a property worth $1,000,000 or more?

No. The credit is reduced by 2.35% of the tax base that exceeds $750,000 and becomes zero at $1,000,000.

When do I need to request the advance payment?

No later than December 1 of the year of the purchase, using form TPZ-1029.AP, if the estimated credit exceeds $1,000 and the welcome tax has been paid in full. Otherwise, the credit is claimed in your income tax return.