Welcome Tax Info
Real estate agent in Montreal, Kirkland, D.D.O., Pierrefonds, West Island, Westmount, Outremont, Beaconsfeild,Ville Marie, Saint-Laurent, Pointe-Claire, Mont Royal, L'ile-Bizard,house,apartment,land,Commercial,rent,Lease,Relocation

 

Faith Khatami

Chartered Real Estate Broker
(514)585-8811

info@fkhatami.com 

 


In addition to the sale price of the property, other costs will be added after the signing of the deed of sale, Such as the Transfer Tax on property, also known as "Welcome Tax". This tax is charged by the municipality in which your newly purchased property is located.
The Welcome Tax is calculated from the selling price of the property, or its municipal evaluation, whichever is greater. The welcome tax or transfer tax is a progressive tax on the value of the property, with the following brackets:

How to calculate the Welcome Tax

The welcome tax or Transfer tax is calculated in the following way:

*0.5%

Of the first $50,000 

($1 - $50,000)

*1%

Of the next $200,000 

($50,001 - $250,000) 

*1.5%

Of the next $250,000

($250,001 - $500,000) 

*2%

Of the remainder of the amount

(> $500,000) 

 

Here are some examples:

We assume the sale price of all properties in these examples are greater than their M.U.C. evaluation  

Example #1:  Sale price $50,000

0.5% x $50,000 = $250

The amount to pay as Welcome tax or Transfer tax is $250.

 

Example #2:  Sale price $300,000 

0.5% x  $50,000       = $250

0.1% x  $200,000     = $2,000   

1.5% x  $50,000       = $750

The amount to pay as Welcome tax or Transfer tax is $3,000.

 

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