Montreal applies BOTH the provincial Quebec land transfer tax AND a municipal surtax on amounts above $500,000.
When buying a property on the island of Montreal, you face a two-layer land transfer tax obligation that does not exist in most other Quebec municipalities. The standard provincial droits de mutation applies to all Quebec properties. On top of that, the City of Montreal levies an additional municipal surtax on the portion of the purchase price exceeding $500,000. This means a $700,000 condo in Montreal generates significantly more tax than a $700,000 home in Laval, Longueuil, or Brossard — all other things being equal.
This distinction is one of the most important financial differences between buying on the Montreal island versus buying in the suburbs, and it is frequently overlooked by first-time buyers comparing properties across the municipal boundary.
| Purchase Price Slice | Provincial Rate | Montreal Surtax | Combined |
|---|---|---|---|
| $0 – $50,000 | 0.5% | — | 0.5% |
| $50,001 – $250,000 | 1.0% | — | 1.0% |
| $250,001 – $500,000 | 1.5% | — | 1.5% |
| $500,001 – $1,000,000 | 2.0% | 0.5% | 2.5% |
| Above $1,000,000 | 2.5% | 0.5% | 3.0% |
$500,000 purchase (Montreal): Provincial LTT = $6,250. Surtax = $0. Total = $6,250.
$700,000 purchase (Montreal): Provincial LTT = $10,250. Surtax = $1,000 (0.5% × $200,000). Total = $11,250.
$1,000,000 purchase (Montreal): Provincial LTT = $16,250. Surtax = $2,500 (0.5% × $500,000). Total = $18,750.
$1,500,000 purchase (Montreal): Provincial LTT = $28,750. Surtax = $5,000 (0.5% × $1,000,000). Total = $33,750.
Consider two buyers, one purchasing a $750,000 condo in Griffintown (Montreal island) and one buying a $750,000 home in Laval. Both pay the same provincial droits de mutation. But the Montreal buyer also pays the surtax: 0.5% on the $250,000 slice above $500,000 = $1,250 extra. On a $900,000 purchase, the surtax is $2,000. On a $1,200,000 property, it's $3,500. These are meaningful sums that should be factored into your budget comparison when evaluating island versus off-island properties.
Droits de mutation (including the Montreal surtax) is billed by the municipality after the deed of sale is registered at the Registre foncier. You will receive a municipal invoice approximately 30–90 days after closing. It is due within 30 days of the invoice date. The tax is NOT paid at the notary on closing day — it comes later as a separate municipal bill. Make sure you have the cash available.
There are limited strategies. The most effective is choosing a property priced at or below $500,000 to avoid the surtax entirely. Buyers comparing a $499,000 condo to a $510,000 one should factor in that the latter crosses the surtax threshold. Some buyers negotiate purchase prices that reflect the tax asymmetry at the $500K boundary. Beyond price selection, there are no Quebec exemptions or rebates for first-time buyers — unlike Ontario's FTHBI program.
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Get KOHO with code 45ET55JSYA →Last updated March 2026. Informational purposes only. Tax rates are subject to change; verify with your notary before closing.