2026 Welcome Tax: How It's Calculated and Rates by City

The welcome tax still surprises many buyers, often because the bill arrives a few weeks after signing at the notary's office. In 2026, the amount can also vary by several thousand dollars from one city to another for the same property. Here is how it is calculated and what you should know before making an offer.

What is the welcome tax?

Its real name is duties on transfers of immovables (land transfer tax). It is collected from the buyer by the municipality where the property is located, under the Act respecting duties on transfers of immovables.

The calculation is based on the tax base, which is the highest of the following amounts: the price paid, the price stated in the deed of sale and the market value of the property at the time of transfer. The market value is established from the municipal assessment multiplied by the comparative factor of the roll (for example, 1.04 in Brossard in 2026). If you buy below the adjusted municipal assessment, that value is therefore the one used for the calculation.

The 2026 provincial scale

The brackets are indexed every year according to the Quebec consumer price index. For 2026:

Tax base bracket	Rate
Up to $62,900	0.5%
From $62,900 to $315,000	1%
Above $315,000	1.5%

Example: for a tax base of $400,000, the tax is $314.50 + $2,521 + $1,275 = $4,110.50.

Higher municipal rates above $500,000

The law allows a municipality to set a higher rate on any portion above $500,000, not exceeding 3%. Only the City of Montréal can go beyond this limit. Many Montérégie cities now apply this 3% rate, but not all of them, and not always at the same threshold:

• Brossard: 1.5% from $315,000 to $500,000, then 3% above $500,000.
• Candiac: 3% above $500,000.
• Longueuil: 1.5% up to $630,100, then 3% above that.

The Montréal case: up to 4%

Montréal has its own, more progressive scale. In 2026:

Bracket	Rate
Up to $62,900	0.5%
From $62,900 to $315,000	1%
From $315,000 to $552,300	1.5%
From $552,300 to $1,104,700	2%
From $1,104,700 to $2,136,500	2.5%
From $2,136,500 to $3,113,000	3.5%
Above $3,113,000	4%

Interestingly, for an average-priced property, Montréal can cost less than some South Shore cities, since its 2% rate is lower than the 3% applied elsewhere. The gap reverses for multi-million-dollar properties.

Side-by-side example: a $700,000 property

City	Welcome tax ($700,000 tax base)
Provincial scale only (no higher municipal rate)	$8,610.50
Montréal	$9,349
Longueuil	$9,659
Brossard	$11,610.50
Candiac	$11,610.50

The Brossard breakdown: $314.50 (0.5%) + $2,521 (1%) + $2,775 (1.5% from $315,000 to $500,000) + $6,000 (3% on $200,000) = $11,610.50. For Longueuil, the 1.5% bracket extends up to $630,100, and only $69,900 is taxed at 3%. The result: roughly $3,000 difference for the same house, simply depending on the address.

To run the numbers with your price and your city, use my welcome tax calculator. You will also find city-by-city information on my pages for Brossard, Longueuil and Candiac.

Payment and exemptions

The municipality sends the bill after the deed is registered. The terms vary: in Montréal, it is payable in a single instalment within 30 days; in Brossard, a bill of $300 or more can be paid in three instalments. Some situations are exempt (transfers between spouses or between direct-line relatives, for example); a supplementary duty may then apply.

First-time buyers: a possible refund

Since 2026, first-time buyers can recover up to $5,875 of their welcome tax thanks to Quebec's new refundable home ownership tax credit, which is reduced above $750,000 and zero at $1,000,000.

Key takeaways

Before comparing two properties in two neighbouring cities, add the welcome tax to your calculation: it is part of the real cost of the purchase and must be paid in cash. If you are torn between two areas of the South Shore or Montréal, I can help you compare all of the costs. Feel free to get in touch.

Sources: Gouvernement du Québec; City of Montréal; City of Brossard; City of Longueuil.

Frequently asked questions

What amount is the welcome tax calculated on?

On the tax base: the highest of the price paid, the price stated in the deed and the market value (municipal assessment multiplied by the comparative factor). So it is not always the purchase price.

Do all cities apply 3% above $500,000?

No. The law allows it, but each municipality decides. Brossard and Candiac apply 3% starting at $500,000, Longueuil only above $630,100, and Montréal has its own scale that goes up to 4%.

Can the welcome tax be included in the mortgage?

It is billed by the municipality after the purchase and is paid separately. Plan for it in your cash reserves; eligible first-time buyers can then recover part of it through Quebec's tax credit.