In Deux-Montagnes, the welcome tax applies the provincial scale up to $500,000, then a municipal rate of 3% on the entire excess. On a $2,000,000 income property, the buyer pays approximately $50,610 in land transfer tax — more than $22,000 more than in a city that stays at the provincial ceiling of 1.5%. This rate kicks in from the first dollar above $500,000, a threshold regularly exceeded in the multi-unit market on the North Shore. Annual property taxes are added each year as an operating expense; Deux-Montagnes capped the rate increase at 1.95% for 2026. This guide details how the welcome tax is calculated in Deux-Montagnes, illustrates the bracket-by-bracket worked example and specifies the verifications to do before signing. Indicative amounts (2026): validate with the City of Deux-Montagnes and the assessment roll.
What is the welcome tax and who pays it in Deux-Montagnes?
The "welcome tax" is a nickname for the land transfer tax, collected by all Quebec municipalities under the Act Respecting Duties on Transfers of Immovables. Every time a property changes hands, the City charges this tax to the new buyer.
Three key things to remember:
- The buyer pays, not the seller. The bill arrives after the notarial deed is signed.
- It is calculated on the "tax base" — the highest of the price paid and the value in the municipal assessment roll.
- The calculation method is the same for a house, a plex or a large multiplex: only the amount changes, because the base is higher.
To understand the general Quebec mechanism before getting into Deux-Montagnes's numbers, see our guide welcome tax and calculator.
How to calculate the welcome tax in Deux-Montagnes (2026 scale)
The land transfer tax is calculated by progressive brackets, like income tax. An increasing percentage is applied to each bracket of the tax base. The thresholds for the first brackets are set by the Quebec government and indexed each year; above that, a municipality may add upper brackets.
The first three brackets follow the provincial scale (indexed annually); above $500,000, Deux-Montagnes has adopted an additional municipal rate of 3.0% (source: City of Deux-Montagnes). Here is the applicable scale in 2026:
| Tax base bracket (2026) | Rate | Rate source |
|---|---|---|
| $0 to $62,900 | 0.5% | Provincial scale |
| $62,900 to $315,000 | 1.0% | Provincial scale |
| $315,000 to $500,000 | 1.5% | Provincial scale |
| Above $500,000 | 3.0% | Additional municipal rate |
Source: brackets set by the Act Respecting Duties on Transfers of Immovables (CQLR c D-15.1) and the City of Deux-Montagnes by-law.
The thresholds of $62,900 and $315,000 are the indexed values for 2026, revised annually by Quebec; the $500,000 threshold for the municipal rate is fixed. The last row is decisive: the portion of a property above $500,000 is taxed at 3%, double the provincial ceiling of 1.5%. For a multiplex whose value often far exceeds this threshold, this bracket accounts for thousands of dollars.
Verify with the City
The tax base used is the highest of the price paid and the standardized value (assessment roll value × standardization factor, established at 1.12 in Deux-Montagnes). Before finalizing a budget, confirm the exact scale and tax base with the City of Deux-Montagnes and the assessment roll, or ask your notary.
How much does the welcome tax cost on a $2,000,000 property in Deux-Montagnes?
Take an income property in Deux-Montagnes with a tax base of $2,000,000 (price paid exceeding the assessment roll value). Here is the bracket-by-bracket calculation at the 2026 scale, including the 3% municipal rate above $500,000:
| Bracket | Calculation | Tax |
|---|---|---|
| $0 to $62,900 | $62,900 × 0.5% | $314.50 |
| $62,900 to $315,000 | $252,100 × 1.0% | $2,521.00 |
| $315,000 to $500,000 | $185,000 × 1.5% | $2,775.00 |
| $500,000 to $2,000,000 | $1,500,000 × 3.0% | $45,000.00 |
| Estimated total | ≈ $50,610 |
The buyer must therefore budget approximately $50,600 in welcome tax on this property, payable after the transaction — the 3% municipal rate above $500,000 alone accounts for $45,000 of the bill. By comparison, without this municipal rate (provincial ceiling of 1.5%), the tax would be only about $28,110. This is an estimate for indication purposes (2026): validate the exact scale and tax base before signing.
Since this expense adds to the acquisition cost, it also affects the investment yield. To measure the impact on value, rely on the cap rate calculator and the GRM (gross rent multiplier) calculator.
What property and municipal taxes apply in Deux-Montagnes?
The welcome tax is a one-time cost, paid once at acquisition. Property taxes recur every year and directly affect the property's net income.
The basic calculation is simple:
- Annual property tax = assessment roll value × rate (per $100 of assessed value), to which service charges are added (water, waste management, etc.).
For its 2026 budget, the City of Deux-Montagnes limited its tax rate increase to 1.95%. The exact residential rate, the categories applicable to buildings with six or more units, and the service charges appear on the tax bill and in the assessment roll. Since the assessment roll is revised every three years in Quebec, a revaluation can affect the bill even if the rate decreases.
Why this matters for an investor
Property taxes are an operating expense: every extra dollar of tax reduces net income, and therefore the value a buyer will pay. Documenting the actual tax amount for the last 12 months makes your file more credible and facilitates a faster transaction.
What exemptions exist in Deux-Montagnes?
The law provides several situations where the land transfer tax does not apply. The most common:
- Transfer between spouses who are married or in a civil union (and in certain cases, common-law partners under applicable conditions).
- Direct-line transfer: between ascendants and descendants (parents, children, grandparents, grandchildren). Note: transfers between siblings are not exempt.
- Transfer by succession at the owner's death.
- Tax base below $5,000.
- Certain transfers involving a related legal entity or public body, under strict conditions.
These exemptions are subject to precise conditions, and a supplementary duty (up to $200) may apply in certain exempt cases. Before assuming an exemption applies, have it confirmed by your notary: they are responsible for filing the transfer declaration. For questions related to family transfers, see also our guide on real estate inheritance.
What is the impact on the seller and buyer of a property in Deux-Montagnes?
For the seller, the welcome tax is not a direct cost: it is the buyer who bears it. But it forms part of the total acquisition cost that the buyer calculates before making an offer. An informed buyer integrates this expense — along with notary fees and inspection — into the price they are willing to pay. Knowing these amounts is therefore helpful for negotiating effectively.
For the buyer, the welcome tax is added to the capital cost of the property: it is generally not deductible in the year of purchase, but it will reduce the capital gain upon a future sale. This is a detail that warrants accounting advice.
If you are considering selling your property in Deux-Montagnes, know that a direct sale to a specialized buyer eliminates the brokerage commission and speeds up the transaction. And before accepting an offer, validate your property's value with our purchase offer calculator.
In summary
In Deux-Montagnes, the welcome tax follows the provincial scale (0.5% / 1% / 1.5%) up to $500,000, then applies a municipal rate of 3% above that; it is paid by the buyer on the higher of price or standardized value (factor 1.12). On a $2,000,000 property, budget approximately $50,600 — versus ~$28,110 if only the provincial ceiling applied. These figures are provided as an indication (2026); always confirm with the City of Deux-Montagnes, the assessment roll, and your notary or accountant.
