Transfer duty

Definition

A municipal duty payable after buying real estate, often called the welcome tax. It is calculated in brackets on the higher of the price paid and the standardized municipal assessment. For 2026 the base brackets are 0.5% up to $62,900, 1% up to $315,000, and 1.5% above; several municipalities, including Montreal, add higher brackets on the portions above $500,000. Example: a $450,000 purchase in a municipality using the base brackets. The bill is about $315 plus $2,521 plus $2,025, or $4,861. The invoice arrives by mail weeks or months after closing; it does not go through the notary and cannot be financed in the mortgage. Keep that amount in your reserve after the purchase. Exemptions exist, for example on certain transfers between spouses.