The welcome tax — formally the real property transfer duty — is collected by every Quebec municipality when a property changes hands. It is paid by the buyer, not the seller. The base provincial scale has three tiers: 0.5% up to $62,900; 1.0% from $62,900 to $315,000; and 1.5% above $315,000. Since 2012, municipalities may add a supplemental rate of up to 3% on the portion exceeding $500,000 — a bracket that applies to virtually every income property sale. On an $850,000 property in a city that applies the 3% municipal rate (e.g., City of Quebec: 2.5% from $500K–$750K, 3% above $750K), the duty is approximately $14,860. Thresholds are indexed annually; figures in this article are indicative for 2026. Always confirm with the relevant municipality and your notary.
What is the welcome tax in Quebec?
The "welcome tax" is the popular name for the real property transfer duty (droit de mutation immobilière), governed by the Act respecting duties on transfers of immovables (CQLR c D-15.1). It has nothing to do with the welcome of a new owner — the name comes from Jean Bienvenue ("bienvenue" = "welcome"), the minister who sponsored the legislation in 1976.
Key principle: the buyer pays, not the seller. After the deed is signed before the notary, the municipality bills the new owner within weeks to a few months. For the seller, this tax does not appear on the closing statement — but knowing the amount helps understand the buyer's cost structure and negotiate accordingly.
The duty applies to every transfer of an immovable located in Quebec: house, condo, duplex, triplex, or large apartment building. The amount is calculated on the tax base using a progressive bracket scale.
Provincial scale and municipal surcharges (2026)
Every Quebec municipality applies, at minimum, the base provincial scale. Municipalities may also add a supplemental municipal rate on the portion exceeding $500,000. Here is the provincial base for 2026:
| Bracket of the tax base (2026) | Base provincial rate |
|---|---|
| $0 to $62,900 | 0.5% |
| $62,900 to $315,000 | 1.0% |
| $315,000 to $500,000 | 1.5% |
| Over $500,000 | 1.5% (provincial base) Up to 3.0% with municipal surcharge |
Source: Act respecting duties on transfers of immovables (CQLR c D-15.1). Provincial thresholds ($62,900 and $315,000) are indexed annually to the CPI. The $500,000 threshold for the municipal supplemental rate is fixed by the Act.
What is the tax base?
The duty applies to the highest of three amounts:
- the sale price paid for the property;
- the consideration stipulated in the transfer deed;
- the standardized assessment value (municipal roll value multiplied by the applicable comparison factor).
For an income property, the roll value is typically established on an income approach, which means it often tracks the actual sale price fairly closely. This is one of the reasons prospective buyers should check the assessment roll before finalizing an offer price.
Which municipalities have a supplemental rate?
Many North Shore municipalities (and Montréal, with its own multi-tier scale) have adopted supplemental rates. Examples for 2026:
| Municipality | Supplemental rate above $500,000 |
|---|---|
| Mirabel | 3.0% (by-law 2455, since July 2021) |
| Rosemère | 3.0% |
| Saint-Eustache | 3.0% |
| Sainte-Thérèse | 3.0% |
| City of Quebec | 2.5% ($500K–$750K); 3.0% (over $750K) |
| Montréal | Multi-tier scale: 2.0% to 4.0% (see our Montréal guide) |
Always confirm the applicable rate directly with the municipality before closing a transaction.
Welcome tax on a multiplex
For income properties (duplex, triplex, 4-plex, 6-plex, and larger), the welcome tax works the same way as for any other immovable — but two factors amplify its impact:
- Higher price: a multiplex almost always sells for more than $500,000, meaning the municipal supplemental rate of up to 3% applies to a significant portion of the transaction.
- Income-based assessment: the municipality may assess the property using an income approach, which can bring the roll value close to — or even above — the sale price, increasing the tax base.
On a $1,500,000 multiplex in a municipality with a 3% rate above $500,000, the transfer duty would be approximately $38,110 — a cost that must be planned for well ahead of closing. Use our purchase offer calculator to model the full acquisition cost.
Worked example: $850,000 property in a city with a 2.5%/3% scale
Take a property sold for $850,000 in a city that applies 2.5% between $500,000–$750,000 and 3.0% above $750,000 (e.g., City of Quebec for 2026):
- $62,900 × 0.5% = $314.50
- ($315,000 − $62,900) = $252,100 × 1.0% = $2,521.00
- ($500,000 − $315,000) = $185,000 × 1.5% = $2,775.00
- ($750,000 − $500,000) = $250,000 × 2.5% = $6,250.00
- ($850,000 − $750,000) = $100,000 × 3.0% = $3,000.00
- Total ≈ $14,860.50
The welcome tax on this $850,000 property would be approximately $14,860. Figures are indicative for 2026; confirm thresholds and rates with the municipality.
Exemptions and special cases
The Act provides several situations where the transfer duty is not payable or is reduced:
- Transfers between spouses (married, civil union, or common-law couples meeting statutory conditions).
- Transfers between relatives in a direct line (parents–children, grandparents–grandchildren) — see our guide on real estate inheritance.
- Certain corporate reorganizations: transfers between a natural person and a corporation they control, or between closely related corporations, under strict conditions.
- Very low tax base: a tax base below $5,000 is subject only to a nominal supplementary duty.
Exemptions — strictly governed
Exemptions under the Act have precise conditions and may require post-transaction declarations. An exemption that is poorly documented can be revoked, and the municipality can reassess. Always have your notary confirm your eligibility before closing.
Strategies to reduce the transfer duty on a multiplex
There are a few legitimate approaches, each with trade-offs:
1. Share sale vs. asset sale
If the property is held in a corporation, a buyer can purchase the shares of the corporation (not the building itself). A share sale does not trigger a transfer duty because the immovable does not legally change hands. However, the buyer assumes all the corporation's liabilities, contracts, and latent issues — far greater due diligence is required. The parties must negotiate accordingly.
2. Applicable exemptions
If the transaction takes place between spouses or relatives in a direct line, or in certain corporate restructurings, the exemption may apply. Always confirm with a notary well before the transaction.
3. Assessment review
If the standardized assessment value on the municipal roll significantly exceeds the sale price, the tax base could be inflated. A formal appraisal by a chartered appraiser may support an appeal to the assessment review board.
Succession, estate, and welcome tax
A property transfer at death (inheritance, legacy, or estate distribution) may or may not trigger a transfer duty, depending on the relationship between the deceased and the beneficiary. A direct-line heir may qualify for an exemption; a beneficiary outside the direct line may owe the full duty. Proper estate planning — with a notary and a real estate tax accountant — can reduce or eliminate this cost. See our complete guide on real estate inheritance.
Impact for the seller of an income property
As a seller, you do not pay the welcome tax. But understanding the buyer's acquisition costs is strategically important:
- A buyer who must provision $30,000–$50,000 in transfer duties (on a $1–2M property in a city with a 3% rate) will take this into account when formulating an offer.
- Knowing this number helps you read the buyer's logic and supports a more informed negotiation.
- From a tax perspective, the proceeds you receive from the sale are subject to capital gains tax — not the transfer duty. See our capital gains calculator.
Selling? The buyer pays the tax — not you.
As the seller, the welcome tax is the buyer's problem. What matters for you is the capital gain and the tax on the sale. Our capital gains calculator and our offer calculator help you model your net proceeds before accepting an offer.
