Updated: April 2025 | bremo.io financial guides
Quebec City Welcome Tax (Droits de Mutation): Complete Guide 2025
The welcome tax — known officially as droits de mutation immobilière in French — is a municipal tax payable by the buyer when purchasing a property in Quebec. Unlike the one-time land transfer tax in Ontario or BC, Quebec's welcome tax applies the same rates across the province, though municipalities can add higher rates for expensive properties.
Quebec calculates droits de mutation (welcome tax) on a sliding scale: 0.5% on the first $52,800 of the purchase price, 1% from $52,800 to $264,000, and 1.5% on any amount above $264,000. Quebec City has no additional municipal surtax — unlike Montreal which adds a 3% tier above $500,000.
Welcome Tax Calculation for Quebec City
Quebec City follows the standard provincial rates with no additional surtax. Here's how to calculate your welcome tax:
Example: $400,000 Purchase
- First $52,800 × 0.5% = $264
- $52,801 to $264,000 (that's $211,200) × 1% = $2,112
- $264,001 to $400,000 (that's $136,000) × 1.5% = $2,040
- Total welcome tax: $4,416
Example: $550,000 Purchase
- First $52,800 × 0.5% = $264
- $52,801 to $264,000 × 1% = $2,112
- $264,001 to $550,000 (that's $286,000) × 1.5% = $4,290
- Total welcome tax: $6,666
Example: $300,000 Purchase
- First $52,800 × 0.5% = $264
- $52,801 to $264,000 × 1% = $2,112
- $264,001 to $300,000 (that's $36,000) × 1.5% = $540
- Total welcome tax: $2,916
Quebec City vs. Montreal welcome tax: Quebec City applies only the three standard provincial tiers. Montreal adds a 3% tier on amounts above $500,000 and a 4% tier above $1,000,000 — significantly higher for expensive properties. Quebec City buyers save on welcome tax compared to Montreal for properties above $500,000.
When is Welcome Tax Paid?
The welcome tax is not paid at closing. After your notary registers the deed, the municipality sends you a tax bill — typically 3–6 months after purchase. Payment is usually due within 30 days of the invoice. Budget for this amount and keep it liquid after closing.
First-Time Buyer Welcome Tax Rebate
Quebec offers a provincial rebate of up to $5,000 on welcome tax for qualifying first-time buyers. To qualify:
- Neither you nor your spouse has owned a principal residence in the previous 5 years
- The property must be your principal residence
- You must be a Canadian citizen or permanent resident
The rebate equals the lesser of the welcome tax paid or $5,000. For a typical Quebec City purchase, this may cover the welcome tax entirely or nearly entirely for first-time buyers.
Properties Exempt from Welcome Tax
- Properties transferred between spouses without consideration
- Transfers due to separation or divorce
- Transfers between parent and child in some circumstances (consult a notary)
- Transfers of a principal residence between parents and children (under specific conditions)
Welcome Tax vs. Other Provincial Transfer Taxes
On a $450,000 purchase, transfer tax comparison:
- Quebec City: approximately $5,166
- Ontario: approximately $5,425
- BC: approximately $7,500
- Alberta: no land transfer tax (registration fees only)