Quebec Land Transfer Tax Calculator
Looking to calculate your land transfer tax in Quebec? Before you finalize your home purchase, you’ll want to ensure that you’ve put enough money aside to cover items associated with closing the deal.
Land transfer tax (LTT) – also known as Property Transfer Duties, or the Welcome Tax, in Quebec, is one of the largest fees associated with the closing of your home and is often overlooked when calculating your total purchase amount. LTT is paid by homebuyers to the province when the ownership of the home or property is transferred from the seller to the buyer. In some cities, such as Montreal, buyers must also pay a municipal land transfer tax (MLTT).
nesto’s Land Transfer Calculator will help simplify your budgeting efforts for all the costs associated with your homebuying process.
Quebec Land transfer tax calculator
Land transfer tax rates in Quebec
The land transfer tax (LTT) in Quebec is calculated based on the purchase price of your property.
Quebec’s LTT works differently than in most provinces because it is calculated and collected by the municipalities. All properties in Quebec are taxed based on their “base amount,” which is calculated as the greater of
- The home’s purchase price
- The amount listed on the deed of sale
- The value of the municipal assessment
Quebec Land Transfer Tax (LTT)
|Up to $55,200||0.5%|
|$55,200 – $276,200||1.0%|
Municipalities can set a rate higher than 1.5% on any bracket over $500,000. However, the rate cannot go above 3%. These brackets are applicable for 2023; each year, the tiers are updated based on inflation measured via Quebec CPI. Note: You may use our Land Transfer Calculator to estimate your required property transfer duties for Quebec; however, the final value must be confirmed with your notary.
Quebec Land Transfer Tax Exemptions
At this time, Quebec’s municipalities do not offer first-time home buyers any rebates on the calculated Property Transfer Duties, however, they do offer exemptions.
Quebec Home Buyers Tax Credit amounts to a maximum of $750 which can be claimed by the buyer upon qualifying criteria being met. Review the credit fully at the Revenu Quebec website to see if you qualify.
Quebec Rénoclimat home energy efficiency program can provide you with financial assistance for the following:
- carrying out insulation work;
- carrying out work affecting your home’s air tightness;
- replacing doors and windows;
- installing or replacing mechanical systems (ventilation system, water heater, heat pump, geothermal heating system).
You can find out more about this program and your eligibility on the Renoclimat resource page.
QST Refund on Newly Built or Renovated Homes amounts to a maximum rebate of $9,975. Find out more information and your eligibility at the Revenu Quebec resource page.
Your application must be filed no later than two years after the earliest of the following dates:
- the date that the renovation work was 90% completed;
- the date that is two years after the date that you (or a relation) first occupied the unit after the renovation work began;
- the date that ownership was transferred to a third party (ownership must be transferred before the unit is occupied).
Property transfer duties can be exempted in the following cases:
- Transfer of a building to an ascendant or descendant in the direct line, such as a father selling a home to his son, or a grandmother to her grandson.
- Transfer between spouses, whether married or common-law couples (as defined in the Act Respecting Duties on Transfers of Immovables), under certain conditions.
- When a transferor is a natural person (an individual) and a transferee is a legal person (corporate entity) if, immediately after the transfer, the transferor owns at least 90% of the shares of the capital stock and full voting rights.
The notary must make a note in the deed of sale for the buyer to be exempted from transfer duties. The municipality can request, if necessary, any document to justify the exemption.
Time limits must apply to qualify for the exemptions:
- For common-law couples who are separating due to a breakdown in their relationship, the property transfer must take place within 12 months of their separation.
- For married couples, if the divorce judgment did not grant the building and/or property to one of the parties, the transfer must occur within 30 days following the date of the divorce judgment.
Montreal Municipal Land Transfer Tax (LTT)
Like in the rest of Quebec, Montreal’s MLTT (property transfer duties) is based on the property’s “base amount,” which is calculated as the greater of
- The property’s purchase price
- The amount on the deed of sale
- The market value as determined by an assessment increase by an annual factor.
Since properties tend to have a higher value in Montreal than in the rest of Quebec, there are additional duties for higher-value properties. Once the base amount has been determined, Montreal MLTT (property transfer duties) is calculated and charged according to this schedule.
Montreal Municipal Land Transfer Tax (MLTT)
|Up to $55,200||0.5%|
|$55,200 – $276,200||1.0%|
|$276,200 to $552,300||1.5%|
|$552,300 to $1,104,700||2.0%|
|$1,104,700 to $2,136,500||2.5%|
|$2,136,500 to $3,113,000||3.5%|
Montreal Land Transfer Tax Rebates & Exemptions
Montreal has a Homebuyer Assistance Program (HBAP) that provides rebates for first-time homebuyers (FTHB) and new constructions in Montreal and its boroughs. The HBAP can provide financial assistance between $5,000 and $22,500, depending on your situation and the subject property.
Suppose you or your family meet the following definitions under this programme. In that case, you should review it in detail to see if you qualify:
- First-time buyer: You have not owned a home in Québec in the five years preceding the purchase, except for a cottage.
- Child: This may be a child that is already born or that will be born or adopted no more than nine months after the home is purchased. In addition, the child must live with you (in the subject property) at least 40 percent of the time.
Quebec & Federal Taxes and Regulations
Quebec has very dynamic land transfer taxes, which are updated yearly based on market and inflationary pressures. Please review in detail to see if these additional taxes impact you in Quebec. We have included links to the taxes and additional links if any programs exist for rebates.
The federal government announced a measure to prohibit non-Canadians from purchasing residential property in Canada for 2 years in Budget 2022. The legislation known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed on June 23, 2022. This law will come into effect on January 1, 2023, for two years ending on December 31, 2025.
Goods and Services Tax (GST) of 5% is payable in Quebec on the construction or purchase of a newly constructed home. You may be able to recover some of the GST paid through the federal government’s New Housing Rebate (NHR). You may be eligible for an exemption from paying this tax if you meet certain conditions if this home will be your primary residence. Conversely, if you plan to rent out the newly built home, then you may be able to claim the GST as a legitimate business expense. As well as applying to the CRA for the second type of rebate designed for real estate investors, the New Residential Rental Property Rebate (NRRPR).
Quebec Sales Tax (QST) of 9.975% is collected in Quebec by your notary on the amount of your default (high ratio) mortgage insurance. An insured mortgage is qualified as such when your down payment is less than 20%. Therefore, you will need to purchase default (high ratio) insurance. Although this insurance is added to your mortgage, the taxes (PST) on purchasing this insurance are not. Upon closing, your notary will collect and remit the PST on behalf of the default (high ratio) insurer (CMHC, Sagen, or Canada Guaranty).
Quebec Property Taxes
In Quebec, the property assessment roll is used to calculate municipal and school taxes.
- There are two main parts to property taxes in Quebec: A municipal tax that depends on the borough within the municipality of the property
- An education tax set by the province that is the same throughout Quebec
The breakdown of the municipal tax rate will differ across boroughs within municipalities. The municipal tax will generally consist of a base tax and other special taxes depending on the borough. These special taxes may fund water services, roads, and other services.
However, an increase in the value of your property does not automatically translate into an equivalent increase in your municipal tax bill.
The city adjusts the rates to reflect changes in assessed values. Municipal tax rates are set annually in the municipal budget to provide the revenue required to deliver municipal services.
In this chart, you can see the tax rates for the boroughs of Montreal. Click on your municipality below for more details on tax rates, payment schedules and contact information.
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