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 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.
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