Quebec Welcome Tax Exemptions Guide 2025

Who Is Exempt from Quebec Welcome Tax?

The Quebec welcome tax (droits de mutation immobilière) is a broadly applied transfer tax, but provincial law specifies a number of important exemptions. If your transfer qualifies, you pay $0 in welcome tax.

Exemption	Conditions
Transfer between spouses	Transfer from one legal spouse to the other, or from a spouse to the other jointly — must be a recognized marriage or civil union
Transfer between common-law partners	Transfer between de facto spouses (conjoints de fait) — requires cohabitation requirements to be met under Quebec law
Transfer to direct lineal descendants	Transfer from parent or grandparent to child or grandchild
Transfer from children to parents	Transfer in the ascending direct line (child to parent or grandparent)
Corporate reorganization	Transfers as part of certain corporate reorganizations where the beneficial ownership does not substantively change
Very low sale price	Transfers where the sale price is $5,000 or less are de minimis exempt
Certain trust transfers	Specific transfers in/out of family trusts may qualify — confirm with a notary

Open a Free Bank Account in Quebec — No Fees

KOHO: no monthly fees, bilingual, cash back on spending. Use code 45ET55JSYA for a bonus.

Get KOHO Free — Use Code 45ET55JSYA

Key Exemption Details

Spousal Transfer Exemption

One of the most commonly used exemptions. If you are adding or removing a spouse from a property title (e.g., refinancing and adding a spouse), the welcome tax may not apply. However, the entire transfer must be between spouses — if a third party is involved (e.g., buying out a co-owner who is not your spouse), the non-spousal portion is taxable.

Direct Family Line Exemption

Transfers within a direct ascending or descending family line are exempt. This covers parent-to-child and grandparent-to-grandchild transfers. Transfers to siblings, cousins, aunts, uncles, or other relatives who are not in the direct line are generally not exempt and will trigger the welcome tax at market value.

How Exemptions Are Claimed

Exemptions are claimed through your notary at the time of the deed. Your notary will include the appropriate declaration in the transfer document. The municipality reviews the declaration and either bills the welcome tax or accepts the exemption. If a municipality disputes an exemption claim, it can be contested through the municipal court.

Important: The Exemption Applies to the Whole Transfer

An exemption under Quebec law applies to the entire transfer, not just a portion. If a property is transferred partly to an exempt person and partly to a non-exempt person, the welcome tax applies to the non-exempt portion calculated on the proportionate value.

What Is NOT Exempt from Quebec Welcome Tax

First-time buyers: There is no general first-time buyer exemption in Quebec (unlike Ontario). See our First-Time Buyer Welcome Tax Guide.
New construction: Buying a brand-new home does not automatically exempt you. The welcome tax still applies.
Sibling or extended family transfers: Transfers between siblings, cousins, or extended family members are not exempt unless they fall within the direct ascending/descending line.
Transfers between unmarried partners who are not de facto spouses: If a couple has not met Quebec's de facto spouse criteria, the transfer is taxable.