How Much Does It Cost to Sell an Income Property in Quebec?
Brokerage commission, notary fees, mortgage discharge, capital gains tax, CCA recapture: every cost to budget for before selling, with precise 2026 figures.
Quick answer — 2026 selling costs
Selling an income property in Quebec costs mainly: brokerage commission (~4 to 6% + GST/QST taxes of 14.975%, if using a broker), notary fees (~$1,500 to $3,000), mortgage discharge and any prepayment penalty, capital gains tax (50% inclusion rate), and CCA recapture (100% as ordinary income). Selling to a direct buyer eliminates the commission entirely.
Commission · Notary · Tax · Discharge · Net proceeds
Before signing anything, it is essential to understand the real cost of selling your income property. This cost goes well beyond brokerage fees — it includes professional charges, significant tax obligations, and sometimes prepayment penalties. This guide covers each item with real 2026 figures.
All selling costs for an income property in Quebec (2026)
A citable summary of every cost item, with the typical amount, who pays it, and whether it is avoidable.
| Cost item | Typical amount | Who pays? | Avoidable? |
|---|---|---|---|
| Brokerage commission | ~4 to 6% of sale price + GST/QST (14.975%) Ex.: $1,000,000 × 5% = $50,000 + taxes ≈ $57,500 | Seller | Yes — direct sale with no broker = $0 |
| Notary fees (deed of sale) | ~$1,500 to $3,000 | Variable (often shared or buyer's responsibility) | Difficult — required by law in Quebec |
| Mortgage discharge / release of hypothec | A few hundred dollars | Seller | No — mandatory if mortgage outstanding |
| Prepayment penalty | Variable by lender (can be significant) | Seller | Sometimes — depends on term remaining and lender |
| Up-to-date survey certificate | ~$800 to $1,800 if new one needed | Seller (generally) | Partial — not required if existing certificate accepted |
| Capital gains tax | 50% of gain included in taxable income (marginal rate up to ~53.3% combined → up to ~26.65% of gross gain) | Seller | No — planning possible, but tax is owed |
| CCA recapture (depreciation recapture) | 100% of previously claimed CCA, taxed as ordinary income in the year of sale | Seller | No — mandatory in the year of disposition |
| Transfer duties (welcome tax) | Variable by price and municipality | BUYER only | N/A — the seller does not pay this cost |
Sources: OACIQ (brokerage commission), Chambre des notaires du Québec (notary fees), Revenu Québec and Canada Revenue Agency (capital gains, CCA), Civil Code of Quebec (mortgage discharge). Indicative data for 2026. This does not constitute tax or legal advice.
On a property sold for $1,000,000 with a broker (5%): the commission alone represents approximately $57,500 including taxes. Adding notary fees, mortgage discharge, and capital gains tax, total cash outflows can easily exceed $100,000 depending on the property's tax history — not counting any prepayment penalty.
Capital gains and CCA recapture: what you need to know
Capital gains tax (50% inclusion rate)
When you sell a rental property, the difference between the sale price and the adjusted cost base (ACB) is a capital gain. In 2026, the inclusion rate is 50%: half of the gain is added to your taxable income and taxed at your marginal rate. The combined marginal rate (federal + Quebec) can reach approximately 53.3% in the top brackets, which corresponds to a maximum tax of roughly 26.65% of the gross gain.
There is no equivalent to the US 1031 exchange in Canada, and the Lifetime Capital Gains Exemption (LCGE) does not apply to rental property held directly. Pre-sale tax planning — including the timing of the disposition — can, however, influence the impact.
Use our capital gains calculator to estimate the tax based on your actual situation.
CCA recapture (depreciation recapture)
If you have claimed Capital Cost Allowance (CCA) on the property over the years, the sale triggers CCA recapture: all previously claimed CCA is added back at 100% as ordinary income in the year of sale. Unlike the capital gain (50% inclusion), recapture is taxed at your full marginal rate — with no exclusion possible.
Example: you have claimed $80,000 in CCA over 10 years. At sale, those $80,000 are added to your taxable income for the year (on top of the capital gain), which can create a significant tax bill in the same year.
What a direct buyer eliminates
Selling directly to a buyer like ImmoMulti completely eliminates the brokerage commission — the largest avoidable cost. On a $1,000,000 property, that is approximately $57,500 (at 5% + taxes) that stays in your pocket rather than going to commission. Tax obligations (capital gains, CCA recapture) apply in the same way regardless of the selling method.
Transfer duties (welcome tax), often mentioned in real estate transactions, are the buyer's responsibility only — the seller does not need to budget for them.
Example: selling a 6-plex at $1,000,000 with and without a broker
The same property, two paths. We quantify the impact of commission and fees on the net amount pocketed.
Capital gains tax and CCA recapture are added based on the property's tax history.
Offer within 48 h, closing in 30–45 days. Capital gains tax and CCA recapture apply the same way.
Illustrative figures as of June 22, 2026. Actual amounts vary by property, lender, and tax history. This does not constitute tax advice.
Selling a $1,000,000 income property: complete cost walkthrough
Every line item — selling costs, capital gains tax, and CCA recapture — to show the real net proceeds after taxes.
Assumptions: ACB = $600,000 (purchase price + capitalized improvements); cumulative CCA claimed = $60,000; top marginal bracket (federal + Quebec). These are illustrative estimates only — not tax advice. Sources: Revenu Québec, Canada Revenue Agency (ITA s. 13 and 38).
Hidden costs sellers often forget
The headline selling costs are well known — but these six items regularly catch Quebec property owners off guard at closing.
Mortgage prepayment penalties
If your mortgage is not yet at maturity, your lender will charge the greater of: three months' interest on the outstanding balance, or the Interest Rate Differential (IRD) — calculated on the gap between your contracted rate and today's rates for the remaining term. On a $700,000 balance with a meaningful rate differential, the IRD can easily reach $15,000–$25,000. Always request a payout statement from your lender before listing.
Closing adjustments
At closing, the notary reconciles items prepaid or collected in advance: municipal and school taxes already paid for the remaining portion of the year (credited to the buyer), and rents collected in advance for the post-closing period (credited back to the buyer). These adjustments can represent several thousand dollars depending on the closing date in the calendar year.
Mortgage brokerage fees
If you are simultaneously refinancing another property or arranging bridge financing to fund a concurrent purchase, your mortgage broker may charge an arrangement fee (typically 0.5%–1% of the new loan amount). This cost is easy to overlook during the fog of a simultaneous transaction.
Accountant fees for the year of sale
The year of disposition triggers a more complex personal tax return: capital gains schedule, CCA recapture, possibly a T2062 clearance certificate request if you are a non-resident, and coordination between federal and Quebec returns. Budget $1,500–$3,500 for a qualified accountant's fees in the year of sale.
Title insurance (if required by buyer)
Although title insurance is primarily a buyer-side product in Quebec, some buyers — particularly institutional or out-of-province buyers — may negotiate for the seller to contribute to, or obtain, a title insurance policy as a condition of sale. Premiums vary by property value.
Mortgage discharge fees
Beyond the prepayment penalty, your lender charges a separate administrative fee to discharge the hypothec from the land register. This fee typically ranges from $500 to $1,000 depending on the institution. It is often buried in the payout statement and confused with the penalty itself.
How to reduce each cost category when selling
Not every selling cost is fixed. Here is how experienced sellers approach each line item to protect their net proceeds.
Commission: negotiate, split, or eliminate it
Brokerage commission is the most negotiable cost in a sale. Three strategies: (1) Negotiate the rate — in a competitive market, brokers may accept 3.5%–4% instead of 5%. (2) Use a split commission structure (e.g., 2.5% to the listing broker + 2.5% to the buyer's broker) to control what you offer cooperating brokers. (3) Sell directly to a buyer without a broker — on a $1,000,000 property, this saves $45,000–$57,500 in commission and taxes. The trade-off is more involvement on your part in negotiations and due diligence.
Notary fees: get three quotes
Notary fees in Quebec are not regulated at a fixed rate for commercial and income property transactions. Get at least three quotes and compare both the base fee and the hourly rate for additional work. For a straightforward transaction on a well-documented property, fees can range from $2,500 to $5,000 — the spread between firms can be significant.
Capital gains tax: reserve, ACB optimization, and timing
Three tools reduce the capital gains bite: (1) Capital gains reserve (ITA s. 40(1)(a)(iii)) — if the buyer pays in instalments (vendor take-back mortgage), you spread the taxable gain over up to five years at 20% per year minimum. (2) Maximize your ACB — every capitalized improvement (roof, windows, structural work) added to the cost base reduces the gain dollar for dollar. Keep all receipts. (3) Time the sale — closing in a low-income year reduces the marginal rate applied to the gain.
Mortgage penalty: check portability
Many Canadian mortgages include a portability clause that allows you to transfer the existing mortgage — at the contracted rate and remaining balance — to a new property purchase, within a specified window (typically 30–120 days). Porting avoids the prepayment penalty entirely. Confirm with your lender before listing whether portability is available and what conditions apply.
Detailed tax breakdown: capital gains, CCA recapture, and the reserve
Understanding the three tax levers — and how they interact — is essential before signing an offer to purchase.
Capital gain: what it is and how it is calculated
A capital gain arises when the sale price exceeds the Adjusted Cost Base (ACB) of the property, minus eligible selling costs. The ACB starts at the original purchase price and grows with every capitalized improvement (major renovations, structural additions) documented over the ownership period. The inclusion rate is 50%: only half the gain enters taxable income. At the top combined federal + Quebec marginal bracket, the effective maximum rate on the gross gain is approximately 26.65%. Source: Revenu Québec, ITA s. 38–39.
CCA recapture: taxed at 100% as ordinary income
Capital Cost Allowance (CCA) claimed on a rental building over the years (typically Class 1, 4% declining balance) is fully recaptured in the year of sale as ordinary income — no 50% inclusion, no reserve. The marginal rate in Quebec at the top bracket reaches 53.31% (combined federal + provincial). Recapture applies only on the building value, not the land. If you have never claimed CCA, there is no recapture — but there may still be a terminal loss if the UCC (Undepreciated Capital Cost) exceeds the allocated proceeds. Consult a tax accountant before the sale to model both scenarios.
Capital gains reserve: spreading the gain over 5 years
If the buyer does not pay the entire purchase price in the year of sale — for example, through a vendor take-back (VTB) mortgage — you may claim a capital gains reserve under ITA s. 40(1)(a)(iii). The reserve defers the portion of the gain not yet received as cash. You must include at least 20% of the total gain in each of the first five years. This mechanism can meaningfully reduce the tax spike in the year of sale by spreading it across lower-income years. Note: CCA recapture cannot be deferred with a reserve — it is fully taxable in year one regardless.
Corporations: additional considerations
If the property is held inside a corporation, the capital gain flows through the corporate tax system. The non-taxable portion of the gain (50%) is credited to the Capital Dividend Account (CDA), from which a tax-free capital dividend can be paid to shareholders. The taxable portion is subject to corporate tax plus Part IV tax on passive income, with integration through the Refundable Dividend Tax on Hand (RDTOH). The effective combined rate depends on the province and the type of corporation. This is materially different from a personal sale — engage a tax specialist with experience in Quebec corporate structures before proceeding.
Sources: Revenu Québec, Canada Revenue Agency (ITA ss. 13, 38–40), Chambre des notaires du Québec, OACIQ. This does not constitute tax or legal advice.
Selling costs for an income property: your answers
The main costs are: brokerage commission (~4 to 6% + GST/QST, if using a broker), notary fees (~$1,500 to $3,000), mortgage discharge and any prepayment penalty, capital gains tax (50% inclusion rate taxed at the marginal rate), and CCA recapture (previously claimed CCA taxed at 100% as ordinary income). Transfer duties (welcome tax) are paid by the buyer, not the seller.
No. The commission is only owed if you use a real estate broker. By selling directly to a buyer like ImmoMulti, you avoid the commission entirely — which represents, on a $1,000,000 property, approximately $57,500 at 5% including taxes (GST/QST of 14.975% on the commission). Direct sale = 0% commission.
Yes, on two fronts: (1) capital gains — 50% of the gain is included in taxable income, taxed at the marginal rate (up to ~26.65% of the gross gain in the top brackets); (2) CCA recapture — all previously claimed CCA is recaptured at 100% as ordinary income in the year of sale. There is no 1031 exchange equivalent in Canada, and the LCGE does not apply to rental property held directly. Use our capital gains calculator to estimate your situation.
No. Transfer duties (commonly called the "welcome tax") are paid exclusively by the buyer, not the seller. The seller does not need to budget for this amount.
Two main levers: (1) sell without a broker to a direct buyer to eliminate the commission (~4 to 6% + taxes) — the largest avoidable cost; (2) plan the tax impact in advance with a tax advisor (timing the sale, maximizing eligible deductions) to minimize capital gains and CCA recapture. See also our guide on broker commission on a plex and the capital gains calculator.
If your mortgage is not yet at maturity, your lender charges the greater of: three months' interest on the outstanding balance, or the Interest Rate Differential (IRD) — the difference between your contracted rate and what the lender can charge today for the remaining term. On a $700,000 balance, the IRD can reach $15,000–$25,000 if rates have dropped significantly since you signed. Always request a payout statement before listing. One way to avoid the penalty entirely: check your mortgage's portability clause — you may be able to transfer the mortgage to a new property within 30–120 days of closing.
Yes — if the buyer pays in instalments (for example, via a vendor take-back mortgage), you can claim a capital gains reserve under ITA s. 40(1)(a)(iii). The reserve lets you defer the portion of the gain not yet received in cash, spreading it over up to five years at a minimum of 20% of the total gain per year. This can meaningfully reduce the tax spike in the year of sale by pushing income into lower-bracket years. Important caveat: CCA recapture cannot be deferred with a reserve — it is fully taxable as ordinary income in year one, regardless of when you receive the cash. Work with a tax advisor to structure the transaction correctly.
They are two distinct tax events that often arise simultaneously on the same sale. A capital gain occurs when the sale price exceeds the Adjusted Cost Base (ACB) — original purchase price plus capitalized improvements, minus selling costs. Only 50% is included in taxable income, so the effective maximum rate is ~26.65% of the gross gain. CCA recapture is the total Capital Cost Allowance you claimed on the building over the years. It is taxed at 100% as ordinary income — no partial inclusion — at your full marginal rate (up to 53.31% combined federal + Quebec). Both amounts can stack on top of each other in the year of sale, making pre-sale planning essential.
Selling without a broker eliminates the commission — typically 4–5% of the sale price + GST/QST, or roughly $45,000–$57,500 on a $1,000,000 property. That is the single largest avoidable cost. A broker may achieve a higher gross price, but after commission, the net is often comparable or lower. For sellers who prioritize speed and certainty — offer within 48 h, closing in 30–45 days — a direct sale to a buyer like ImmoMulti frequently delivers a better net outcome. Tax obligations (capital gains, CCA recapture) apply identically regardless of how you sell.
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