In addition to the sale price of the property, other costs will be added after the signing of the deed of sale, for example:

The Transfer Tax on property, also known as "Welcome Tax".

The Welcome Tax is a tax that the municipality in which you purchase a property charges you.

The Welcome Tax is based on the greater amount of the following:

§   the selling price of the property, or

§   the municipal evaluation of the property

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.

You may contact me at (514) 585-8811 to find out about the Welcome tax for your property.