How property transfer duties are calculated

Last updated November 29, 2022
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Would you like to buy a building in Montréal? Would you like to understand how the duties (also called  the “welcome tax”) are calculated? Find out everything you need to know.

In general, property transfer duties are calculated by multiplying:

  • The tax base
  • Rates that depend on property value

Tax base

The tax base corresponds to the highest of the following three amounts:

  • The amount paid for the building transfer, which generally corresponds to the building’s selling price, excluding PST and QST.
  • The amount stipulated for the building transfer, which generally corresponds to the price listed in the deed of sale.
  • The building’s market value, which corresponds to the value that appears on the assessment roll at the time of transfer multiplied by the comparative factor that is in effect.

Calculating property transfer duties is not necessarily based on the selling price of the building.

Market value and comparative factor

While the property transfer duties are calculated using the building’s market value, the tax base is calculated by multiplying:

  • The value of the building that appears on the property assessment roll.
  • The city’s comparative factor that was in effect at the time of sale.

The comparative factor brings the real estate transaction price to a basis that is comparable to the market value.

Montréal’s comparative factors are as follows:

Year

Comparative factor

2023

1.00

2022

1.18

2021

1.06

2020

1.00

Rates by value brackets

Property transfer duties are calculated according to value brackets that correspond to certain rates. These brackets, sometimes called thresholds, change every year.

In Montréal, the value brackets from January 1 to December 31, 2023, are as follows:

Tax base value

Rate

Up to $55,200

0.5%

$55,200 to $276,200

1%

$276,200 to  $552,300

1.5%

$552,300 to  $1,104,700

2%

$1,104,700 to $2,136,500

2.5%

$2,136,500 to $3,113,000

3.5%

Higher than $3,113,000

4%

Calculation example for 2023

Here’s an example of calculation with a tax base of $700,000:

  • $55,200 x 0.5% = $276.00
  • $221,000 x 1% = $2,210.00
  • $276,100 x 1.5% = $4,141.50
  • $147,700 x 2% = $2,954.00

The amount payable for property transfer duties would be $9,581.50.

In Montréal, the value brackets for 2022 were as follows:

Tax base value as of February 1, 2022

Rate

Up to $53,200

0.5 %

$53,200 to $266,200

1%

$266 200 to $532 300

1.5%

$532,300 to $1,064,600

2%

$1,064,600 to $2,059,000

2.5%

$2,059,000 to $3,000,000

3.5%

Higher than $3,000,000

4%

Calculation example for 2022

Here’s an example of calculation with a tax base of $700,000:

  • $53,200 x 0.5% = $266.00
  • $213,000 x 1% = $2,130.00
  • $266,100 x 1.5% = $3,991.50
  • $167,700 x 2% = $3,354.00

The amount payable for property transfer duties in 2022 would be $9,741.50.

In Montréal, the value brackets applied from January 1 to January 31, 2022 were different.

Pay your property transfer duties

Did you receive a bill for property transfer duties? This invoice is payable in one instalment within 30 days of the billing date.

Pay your invoice

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