In Terrebonne, the welcome tax — real estate transfer duty — is calculated on the tax base (the highest of the sale price, consideration in the deed, or the standardized property value) using a progressive bracket schedule. The first three brackets follow the provincial base schedule with a ceiling at 1.5%, then Terrebonne applies a municipal rate of 3.0% on the portion above $500,000. On a $2,000,000 income property, the bill comes to approximately $50,610, of which $45,000 is generated by the 3% bracket alone. For comparison, without this municipal bracket, the duty would be only about $28,110. This charge is paid by the buyer only — not the seller — after the transaction. Annual property taxes are added on top: for 2026, the residential tax increase is approximately 2.94% in Terrebonne. This guide presents the full rate schedule, a detailed bracket-by-bracket example, available exemptions, and the practical impact for both parties. Figures are indicative (2026); confirm with the City of Terrebonne and the property assessment roll.
What is the welcome tax in Terrebonne?
The "welcome tax" is the popular nickname for the real estate transfer duty. In Terrebonne as in all Québec municipalities, the transfer of ownership of any property on the city's territory is subject to this duty, governed by the Act respecting duties on transfers of immovables. The nickname comes from a joke — the new owner is "welcomed" with a bill.
One key point for income property sellers: it is the buyer who pays this duty, never the seller. And unlike notary fees, it is not settled on the day of the deed: the City of Terrebonne sends an invoice after the sale is registered, and the buyer generally has 30 days to pay. This expense must therefore be planned for after the transaction, not at signing.
Key takeaway
The transfer duty is paid by the buyer, after the sale, on the City's invoice, using a progressive indexed rate schedule — including a municipal bracket at 3% above $500,000. All figures must be confirmed with the City of Terrebonne.
How is the welcome tax calculated in Terrebonne?
The duty is calculated on the tax base — the highest of the following three amounts:
- the sale price agreed between the parties;
- the value on the property assessment roll, multiplied by the applicable comparative factor;
- the consideration stipulated in the notarial deed.
For an income property sold between arm's-length parties, the sale price is almost always the base. A progressive bracket schedule is then applied. In Québec, the base brackets are indexed annually against the CPI. Terrebonne has exercised the power provided by law and adds a higher bracket of 3% on the portion above $500,000. Here is the schedule applicable in Terrebonne for 2026:
| Tax Base Bracket | Rate (2026) |
|---|---|
| $0 to approximately $62,900 | 0.5% |
| Approximately $62,900 to $315,000 | 1.0% |
| $315,000 to $500,000 | 1.5% |
| Portion above $500,000 | 3.0% (Terrebonne municipal bracket) |
Source: base brackets set by the Act respecting duties on transfers of immovables (CQLR c D-15.1); additional 3% rate above $500,000 adopted by City of Terrebonne bylaw.
The provincial thresholds ($62,900 and $315,000) are indexed annually and published in the Gazette officielle du Québec; they may differ slightly from the exact Terrebonne schedule applied in 2026. The 3% bracket above $500,000 adopted by Terrebonne (the maximum rate permitted by the Act respecting municipal taxation) is particularly significant for income properties, whose values often exceed this threshold. Confirm the current rate schedule with the City of Terrebonne before pricing a transaction: this is the biggest factor in the bill.
How much is the welcome tax on a $2,000,000 property in Terrebonne?
Consider an income property with a sale price of $2,000,000 and an assessed value below that (so the tax base is the sale price). Here is the calculation, bracket by bracket, using the 2026 Terrebonne schedule including the 3% municipal bracket above $500,000:
- 0.5% on the first bracket (≈ $62,900) ≈ $314.50
- 1.0% on the next bracket ($62,900 to $315,000, i.e., $252,100) = $2,521
- 1.5% from $315,000 to $500,000 ($185,000) = $2,775
- 3.0% on the portion above $500,000 ($1,500,000) = $45,000
Total: approximately $50,610 in transfer duty. The municipal 3% bracket dominates the bill: by itself, the portion above $500,000 accounts for $45,000, compared to $22,500 had Terrebonne stayed at the provincial ceiling of 1.5%. Confirm the current schedule with the City of Terrebonne before relying on any estimate, as provincial thresholds are re-indexed each year.
Payment and proper calculation method
In Terrebonne, the transfer duty is not paid at the notary's office: the City sends an invoice after the deed is registered (usually 3 to 6 months later), payable within 30 days of receipt. The correct calculation method: (1) determine the tax base (the highest of the sale price, adjusted assessed value, and consideration), (2) apply the provincial brackets, (3) add the municipal 3% bracket above $500,000. If in doubt, ask your notary for an estimate and confirm the schedule with the City.
What are the property and municipal taxes in Terrebonne?
The transfer duty is a one-time charge — paid once, at purchase. Property taxes, on the other hand, come back every year and eat into the net income of the property. In Terrebonne, the tax bill combines a general property tax, special levies (infrastructure, etc.) and service charges (water, waste management depending on the case).
According to the 2026 budget of the City of Terrebonne, the combined residential rate is approximately $0.68 per $100 of assessment (indicative, combining the general property tax and infrastructure special levy), with a residential increase of approximately 2.94% compared to 2025. The rate applicable to an income property depends on the property category and number of units: a six-unit-and-over property may fall under a different billing category. Check the tax bylaw and your tax bill with the City for the exact rate.
A new three-year assessment roll for 2026–2027–2028 is also in force in Terrebonne. For a rental property, the City often uses the income approach to establish the assessed value — which is why it is important to know the value on the roll, used both for property tax calculations and potentially as the tax base for the transfer duty. To estimate actual profitability after taxes, the cap rate and the gross rent multiplier (GRM) are useful starting points.
Who can be exempt from the welcome tax in Terrebonne?
The Act provides for certain exemptions from the transfer duty. The most common:
- Transfers between close relatives: between spouses, or in direct ascending or descending line (parent-child, grandparents-grandchildren).
- Transfers involving a related legal person: for example, a transfer between an individual and a corporation they control with more than 90% of the voting rights.
- Transactions below a minimum threshold: very low tax bases (generally under $5,000) give rise to no duty.
In practice, these exemptions rarely apply to arm's-length sales of income properties: a buyer purchasing a plex on the market should normally expect to pay the full transfer duty. If you are considering a family transfer or a corporate reorganization, your eligibility must be confirmed by your notary and with the City of Terrebonne. For the estate context, see our guide on inheriting real estate.
What is the impact of the welcome tax on sellers and buyers in Terrebonne?
On the buyer's side, the transfer duty and property taxes add to the total acquisition cost. A serious investor factors these into their return calculation: the higher these costs, the more constrained the price they can offer to reach their target yield. Knowing the municipal tax bill means understanding part of the buyer's pricing logic.
On the seller's side, you do not pay the transfer duty — but it still matters to you. A seller who knows these figures can better anticipate objections and defend their price with solid arguments. This is especially true in Terrebonne and on the North Shore, where demand for multiplex properties remains strong. For more on selling, see our guide selling an income property in Terrebonne, and our provincial overview welcome tax in Québec. To price a realistic offer, the offer calculator integrates the key parameters.
In summary
In Terrebonne, the buyer pays the transfer duty ("welcome tax") after the sale, on a City invoice, using a progressive indexed schedule — with a municipal bracket of 3% above $500,000 that significantly increases the bill for income properties. Property taxes return every year (combined residential rate around $0.68/$100 in 2026, indicative). All figures must be confirmed with the City of Terrebonne and the assessment roll. This article is informational and does not replace notarial, tax, or financial advice.
