Closing Costs in Quebec: The Welcome Tax and More

Closing Costs in Quebec: The Welcome Tax and More

Short answer: Quebec's transfer duty, nicknamed the welcome tax, is calculated on the highest of the purchase price, the amount in the deed, or the municipal assessment. The 2026 base brackets are 0.5% on the first $62,900, 1% on the portion from $62,900 to $315,000, and 1.5% above $315,000. Municipalities may charge more on the portion above $500,000, and Montreal does. Uniquely, the bill is mailed by the municipality after registration and is typically payable within 30 days, so it is a post-move cash need rather than a closing-day one. Add notary fees and the standard stack; total closing costs in Quebec are usually lighter than Ontario or BC, often around 1.5% to 2.5% of the price in cash terms.

Quebec runs its real estate system on civil law, which changes two things buyers from other provinces notice immediately: a notary handles the transaction (in other provinces it is usually a lawyer), and the transfer tax behaves differently in both timing and ownership, since it belongs to the municipality rather than the province. Everything else, down payment rules (our down payment guide applies nationally), the CMHC premium, and the stress test, works as it does elsewhere in Canada. This guide covers the Quebec-specific stack. Our national closing costs hub has the cross-country comparison.

Line 1: The welcome tax (transfer duties)

The duty is graduated like income tax: each rate applies only to its slice. The 2026 base tranches (the amounts are indexed annually):

Slice of value	Rate
First $62,900	0.5%
$62,900 to $315,000	1.0%
Above $315,000	1.5%

Worked examples at base rates:

• $450,000: $314.50 + $2,521 + $2,025 = about $4,861.
• $650,000: $314.50 + $2,521 + $5,025 = about $7,861.

Compare Ontario's provincial land transfer tax at the same prices ($6,475 at $500,000 there, for scale) and Quebec's lighter touch shows. Two structural notes: the tax base is the highest of the price, the deed amount, or the municipal evaluation factored by the comparative factor the province publishes, which matters when a home sells under assessment; and there is no first-time buyer refund of the welcome tax in Quebec, a policy choice that periodically resurfaces in provincial politics but stands as of this writing.

Line 2: Municipal tiers above $500,000

Quebec municipalities may set higher duty rates on the portion of value above $500,000, and larger cities use the room. Montreal's rate structure has historically added higher brackets above $500,000 and again above $1 million and $2 million, so a Montreal purchase at $800,000 does not pay the base table above past the $500,000 line; it pays Montreal's schedule. The base tranches up to $500,000 are province-wide; what your municipality does above that line is a city hall question. Before offering, check your municipality's current bylaw (Montreal publishes its rates on the city website), because the difference between base rates and Montreal rates on a $1.5 million home is a five-figure surprise for buyers who ran the provincial table only.

Line 3: The timing quirk that helps your closing day

Everywhere else in this series, the transfer tax is cash at closing. In Quebec, the municipality invoices the welcome tax after the deed is registered, and you typically have about 30 days from the invoice to pay. Practically: your closing-day cash need drops by the amount of the duty, and your month-two cash need rises by it. Budget it as a closing cost in your plan, but do not let its absence from the closing statement make you think it was waived. It also means the figure cannot be rolled into the mortgage; it was never part of the closing funds to begin with.

Line 4: The notary

Quebec real estate transactions are executed before a notary, who prepares the deed of sale, the mortgage deed, verifies title, and registers the acts. Notary fees for a standard purchase are a professional-services cost comparable in spirit to legal fees elsewhere; get a written quote that separates professional fees from disbursements (registration fees, certificates, copies). Because the notary is neutral in structure but engaged by the buyer, buyers with unusual files (succession sales, divided co-ownership quirks, private financing) should raise the complexity at the quoting stage. Among closing customs elsewhere: Quebec's system generally does not use title insurance the way Ontario practice does, because the notary's title examination plays the central role; some buyers purchase it anyway for lender requirements.

Lines 5 to 8: The rest of the stack

• GST and QST on new construction: new homes carry 5% GST plus 9.975% QST, with federal and Quebec new housing rebates that phase out by price, and the newer First-Time Home Buyers' GST/HST rebate (up to $50,000 of the GST portion) for qualifying first-time buyers of new homes; our GST rebate guide covers the federal piece and links the concepts. Resale homes are exempt from both taxes.
• CMHC premium tax: Quebec is one of the three provinces (with Ontario and Saskatchewan) that tax the mortgage default insurance premium; the QST on the premium cannot be added to the mortgage and is cash at closing. At a $16,740 premium the QST is roughly $1,670. See our premium guide.
• Municipal and school tax adjustments: taxes are adjusted between buyer and seller to the closing date, as elsewhere; Quebec's municipal tax calendar (instalments set by each city) decides whether you reimburse the seller or receive a credit.
• Certificate of localization (survey): in Quebec practice the seller typically provides a current certificate of localization; if it is stale or missing, who pays to refresh it is a negotiable term worth settling in the promise to purchase.
• Home inspection: pre-purchase inspection is standard practice in Quebec and is usually a condition in the promise to purchase; budget it before closing, and note Quebec's particular attention to items like pyrrhotite and foundations in affected regions, which your inspector should be chosen with in mind.

The full stack at two price points

$450,000 resale, insured with 10% down: welcome tax about $4,861 (billed by the municipality after closing); QST on the CMHC premium roughly $1,260 at the 3.10% premium band on a $405,000 loan (about $12,555 premium); notary, adjustments, and inspection on top. Cash to close beyond the $45,000 down payment is comparatively light by Canadian standards, with the welcome tax arriving weeks later.

$800,000 in Montreal, 20% down: the welcome tax is the swing item: base brackets to $500,000 plus Montreal's higher tiers above it, so run the city's schedule rather than the provincial table. No CMHC premium (20% down). Notary and adjustments on top. The total can still land below an equivalent BC PTT bill, which is part of why Montreal closing stacks surprise out-of-province buyers pleasantly.

Quebec's closing system rewards buyers who read the municipal bylaw and calendar the post-closing tax bill. The province's transfer costs are structurally lower; the notary system is structurally different; neither excuses a budget that forgets the invoice arriving in the mail after the move.

Citations: Act respecting duties on transfers of immovables (Quebec) and the indexed 2026 tranches published by the ministère des Affaires municipales et de l'Habitation (mamh.gouv.qc.ca); Ville de Montréal transfer duty rates (ville.montreal.qc.ca); CMHC premium schedule and provincial tax treatment (cmhc-schl.gc.ca). Municipal rates above $500,000 vary by city; verify your municipality's bylaw.