The “ Welcome Tax” is a land transfer tax or in French, commonly referred to in Montreal as the “taxe de bienvenue”.
Since January 1, 1992, every Quebec municipality must collect duties on the transfer of any immovable situated within its territory. This tax is payable by the buyer and is calculated as follows:
0.5% of the first $50,000;
1% of the next $50,000 to $250,000;
1.5% of the next $250,000 to $500,000.
2% of any portion exceeding $500,000
If a property is sold for $429,000. The taxes payable to the municipality will be:
0.5% of the first $50,000 = $250
1% of the next portion $50,000 to $250,000 = $2,000
1.5% of the portion exceeding $250,000 = $2,685
2% is not applicable in this case
Total taxes payable is $4,935.
Full details, please refer to the City of Montreal’s Website Duties on transfers of immovables