The “Welcome Tax” is the informal name for property transfer duties. It’s a tax payable to the city when a property changes hands. Although called a “welcome,” it’s a municipal duty applied at the time of transfer of ownership.

The tax is calculated on a tax base, which is the highest of:

• The purchase price (amount paid for the property, before taxes),

• The price listed in the deed of sale, or

• The market value on the municipal assessment roll, multiplied by the comparative factor in effect for that year.

This base amount is then applied against the city’s tax brackets. Each portion of the value falls into a bracket with its own rate.

Comparative factors adjust the assessed value so it better reflects the market. For example:

• 2025 → 1.08

• 2024 → 1.10

• 2023 → 1.00

• 2022 → 1.18

So if your property’s assessed value is $500,000 in 2025, the adjusted tax base is $500,000 × 1.08 = $540,000.

From January 1, 2025, Montréal applies these marginal rates:

• Up to $61,500 → 0.5%

• $61,500 – $307,800 → 1%

• $307,800 – $552,300 → 1.5%

• $552,300 – $1,104,700 → 2%

• $1,104,700 – $2,136,500 → 2.5%

• $2,136,500 – $3,113,000 → 3.5%

• Over $3,113,000 → 4%

Yes. Suppose your property’s tax base in 2025 is $700,000.

• First $61,500 × 0.5% = $307.50

• Next $246,300 × 1% = $2,463.00

• Next $244,500 × 1.5% = $3,667.50

• Remaining $147,700 × 2% = $2,954.00
  Total Welcome Tax = $9,392.00

No. Both the brackets and the comparative factor change from year to year. This means the amount of tax can vary even if the property value hasn’t changed.

Generally, the City of Montréal will send you a transfer duties bill a few weeks or months after the deed of sale is registered. Payment deadlines and installment options vary, but it’s important to pay promptly to avoid penalties.

Yes. It applies to most real estate transfers, including homes, condos, multiplexes, and commercial properties. Certain exemptions exist (for example, transfers between spouses or under specific family circumstances), but they are limited.