In Saint-Eustache, the welcome tax applies at 3% on every dollar above $500,000. On a $2,000,000 income property the transfer duty amounts to approximately $50,610 — of which $45,000 is generated by the 3% bracket alone, compared with roughly $28,110 if only the provincial ceiling of 1.5% applied. For 2026, the City of Saint-Eustache also announced an average property tax increase of approximately 2.54% for buildings of 6 or more units, in the context of a new assessment roll. The duty is paid by the buyer after the deed is signed; the seller bears none of it. This guide details the 2026 scale bracket by bracket, walks through the calculation with a concrete example, and reviews the available exemptions. All figures are indicative for 2026: confirm with the City of Saint-Eustache and your notary.
What is the welcome tax and who pays it in Saint-Eustache?
The "welcome tax" is the popular name for the real property transfer duty (droit de mutation immobilière). It is collected by Saint-Eustache each time a property on its territory changes hands, under the Act respecting duties on transfers of immovables. The name comes from Jean Bienvenue, the minister who sponsored the law in 1976 — not because it welcomes anyone.
The essential point: the buyer pays, not the seller. The City of Saint-Eustache bills the new owner after the deed is registered in the land registry, typically within weeks to a few months. For the provincial picture, see our guide on the welcome tax 2026 and the welcome tax calculator.
How is the welcome tax calculated in Saint-Eustache (2026 scale)?
The calculation rests on two elements: the tax base and the bracket scale.
1. The tax base
The duty applies to the highest of: the price paid, the consideration stated in the deed, and the standardized value on the municipal assessment roll. For an income property, the assessment may be established using an income approach, which can bring the roll value close to the actual sale price.
2. The 2026 Saint-Eustache scale
Saint-Eustache has adopted the maximum supplemental municipal rate of 3.0% on the portion exceeding $500,000. Below that threshold, the basic provincial scale applies:
| Bracket of the tax base (2026) | Rate | Source |
|---|---|---|
| $0 to $62,900 | 0.5% | Provincial |
| $62,900 to $315,000 | 1.0% | Provincial |
| $315,000 to $500,000 | 1.5% | Provincial |
| Over $500,000 | 3.0% | Municipal supplemental rate |
Source: brackets from the Act respecting duties on transfers of immovables (CQLR c D-15.1); 3% supplemental rate adopted by by-law of the City of Saint-Eustache. Provincial thresholds ($62,900 and $315,000) are indexed annually; the $500,000 municipal threshold is fixed. Confirm the current scale with the City of Saint-Eustache before closing.
Check before signing
Since a multiplex almost always exceeds $500,000, the 3% rate applied to the excess changes the entire calculation. Confirm with the City of Saint-Eustache (finance department) the transfer duty by-law in force, and have your notary validate the final calculation.
How much is the welcome tax on a $2,000,000 property in Saint-Eustache?
Take an income property purchased for $2,000,000 in Saint-Eustache, assuming this price is the highest of the three amounts and constitutes the tax base. Applying the 2026 Saint-Eustache scale, 3% municipal rate above $500,000 included:
- Bracket $0 → $62,900 at 0.5% = $314.50
- Bracket $62,900 → $315,000 ($252,100) at 1.0% = $2,521.00
- Bracket $315,000 → $500,000 ($185,000) at 1.5% = $2,775.00
- Bracket $500,000 → $2,000,000 ($1,500,000) at 3.0% = $45,000.00
- Total ≈ $50,610
The 3% municipal rate above $500,000 accounts for $45,000 of the total bill. By comparison, without this municipal rate (provincial ceiling of 1.5%), the duty would be only about $28,110 — a difference of more than $22,000. These amounts are indicative (2026) and rounded; only the notary produces the official calculation.
To put this cost in a profitability context, use the cap rate calculator and the GRM calculator.
What property taxes apply to an income property in Saint-Eustache?
Separate from the one-time transfer duty, the property owner pays annual property taxes. For 2026, the City of Saint-Eustache announced an average property tax increase of approximately 2.54% for buildings of 6 or more units. This increase reflects the new assessment roll and municipal budget decisions for the year.
Key points for an income property:
- The applicable rate depends on the property category (residential, 6+ units, non-residential): confirm with the City which category applies to your property.
- An income property is typically assessed using an income approach, which ties the assessed value directly to the rents generated — so a rent increase or a market cap rate shift can affect the assessment at the next roll.
- To understand how rental income translates to value, use our tools for the cap rate and the gross rent multiplier (GRM).
The authoritative source for the exact tax amounts is your tax bill and the assessment roll from the City of Saint-Eustache. Always request the current tax bill before finalizing an acquisition.
What transfer duty exemptions exist in Saint-Eustache?
The Act provides several situations where the transfer duty is not payable. The most common exemptions are:
- Transfers between spouses (married, civil union, or common-law couples meeting statutory conditions).
- Transfers between relatives in a direct line (parents–children, grandparents–grandchildren) — relevant for real estate inheritance.
- Certain corporate reorganizations: transfers between a natural person and a corporation they control, under strict conditions.
- Tax base below $5,000.
These exemptions are precisely governed and come with conditions (and sometimes post-transaction declarations). Have your notary confirm your eligibility before closing.
What is the impact for the seller and the buyer of a property in Saint-Eustache?
The transfer duty is paid by the buyer, but it affects the seller indirectly:
- For the buyer: roughly $50,600 in transfer duties on a $2,000,000 property must be provisioned at closing, in addition to notary fees and adjustments. Include this in your purchase offer calculator from day one.
- For the seller: a well-informed buyer factors this cost into the price offered. Think in terms of net proceeds and support your asking price with the property's actual income. Our page on selling an income property in Saint-Eustache details the steps, timelines, and commission-free options.
In summary
In Saint-Eustache, the welcome tax follows the provincial scale (0.5% / 1.0% / 1.5%) up to $500,000, then applies a municipal rate of 3% on the excess. On a $2M multiplex this amounts to ~$50,610, paid by the buyer. For 2026, property taxes on 6+ unit buildings increased by approximately 2.54%. Confirm all figures with the City of Saint-Eustache and your notary, then model your net proceeds before accepting or making an offer. This article is informational and does not constitute tax, legal, or financial advice.
