Understanding the Welcome Tax on the Island of Montreal

Every buyer learns about the welcome tax and how it varies depending on the price of the property. It can sometimes come as a shock to see just how much needs to be put aside in order to pay for the welcome tax which the city generally sends within 30-60 following the publishing of the act of sale.

The welcome tax is a land transfer tax which was established in 1976 under the government of René Levesque.

Understanding the Welcome Tax calculation in Montreal
- Current calculation for the island of Montreal:
- 0.5% for the first $58,900
- 1% for $58,900 to $294,600
- 1.5% for $294,600 to $552,300
- 2% for $552,300 to $1,104,700
- 2.5% for $1,104,700 to $2,136,500
- 3.5% for $2,136,500 to $3,113,000
- 4% for amounts exceeding $3,113,000

It’s important to prepare for additional expenses when buying a home and knowing the calculation for your welcome tax can be very helpful when budgeting.