Updated Checked by the Tax-Services.ca editorial team How we check
Montreal city taxes come down to two bills most owners meet: the annual property tax, and the welcome tax (droits de mutation) you pay once when you buy. The welcome tax has 2026 brackets you can work out yourself: 0.5% up to $62,900, rising in steps to 4% above $3,113,000. The property tax rate depends on your building type and your borough, so it can’t be given as one number.
How is the Montreal welcome tax worked out?
The city applies the brackets to a base. That base is the highest of three figures: the price actually paid, the amount stated in the deed, and the property’s market value in the city’s roll multiplied by a comparative factor. For 2026 that factor is 1.00, so the market value goes in unchanged.
Brackets apply by slice, like income tax. Only the part of the price in each band is charged at that band’s rate. The buyer pays it, not the seller.
The 2026 Montreal brackets
| Part of the base | Rate |
|---|---|
| Up to $62,900 | 0.5% |
| $62,900 to $315,000 | 1% |
| $315,000 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% |
| Above $3,113,000 | 4% |
Quebec’s provincial scale stops at 1.5%. Montreal’s own scale goes higher, and other Quebec cities may set their own higher rates above $500,000, which we haven’t checked one by one.
What does the welcome tax cost on a real purchase?
On a $450,000 home, the welcome tax calculator gives $4,860.50, or 1.08% of the price. Move up to $600,000 and it’s $7,349, which is 1.22%. That extra $150,000 costs $2,488.50, since it lands in the 1.5% and 2% bands.
You can check the $450,000 figure by hand. The first $62,900 at 0.5% is $314.50. The next $252,100 at 1% is $2,521.00. The last $135,000 at 1.5% is $2,025.00. Add them up and you get $4,860.50. For a smaller condo at $350,000 the same method gives $314.50 plus $2,521.00 plus $525.00, so $3,360.50, or about 0.96% of the price.
First-time buyers may get a Quebec refundable credit, but it comes after closing, so you still pay the full duties first. The formula we found gives up to $5,875, and it may shrink for higher-value homes. We couldn’t confirm that reduction on an official page. The bill is due roughly 30 days after it’s sent, so put that money aside before the notary appointment. For a wider look at buying costs, see the closing costs calculator.
How do Montreal property taxes work?
Every year you get a bill based on the assessed value of your property. The city’s own page says the rates depend on the category of the building and the borough. We couldn’t read the 2026 rate table itself, so we won’t give you a rate.
Find it yourself on your bill or on the city’s page for tax rates. Then use the property tax calculator with your assessed value and your real rate. As a pure illustration, a $700,000 assessment at 0.75% comes to $5,250 a year, or $437.50 a month. That rate is only an example and isn’t Montreal’s.
Assessed value isn’t market value. It’s set on a fixed date, so a home that has jumped in price may still carry an older figure.
Which taxes are not city taxes?
Income tax and sales tax. When you shop in Montreal, GST at 5% and QST at 9.975% apply to most items, which is 14.975% in all. On $100 that’s $114.98 including tax, as the GST and QST calculator shows. Groceries and most medical services are left out. Your income tax return is a separate matter from your city bill, so start with the income tax calculator for that.
What should a buyer ask before making an offer?
Start with the last tax bill, the assessment date on it, and whether the seller has any tax arrears. Then work out the welcome tax for your offer price, since a $25,000 jump in price near $450,000 adds $375 of welcome tax at the 1.5% rate. That’s not a deal-breaker, but it’s real money, and it’s easier to plan for before the notary than at the signing table.
Common mistakes with city taxes
Buyers forget the welcome tax when they budget. It isn’t part of the mortgage. Owners assume their rate is the city’s headline rate, then find the borough part on the bill. And people compare Montreal with another city using the provincial scale, which understates the tax on higher prices.
If you’re weighing an offer, ask the seller for the latest tax bill, and check the assessment date on it.
The sources behind this page
The brackets and the base come from the City of Montreal’s page on how transfer duties are calculated, checked in 2026. The provincial scale comes from Quebec’s municipal fiscal pages. Sales tax rates come from Revenu Québec‘s basic rules, which we read through a summary and couldn’t open in full. The examples come from this site’s calculators.
Frequently asked questions
How much is the Montreal welcome tax?
It's charged in slices, from 0.5% up to $62,900 to 4% above $3,113,000. On a $450,000 home it comes to $4,860.50.
What is the base for the welcome tax?
The highest of the price paid, the amount in the deed and the market value in the city's roll multiplied by the comparative factor, which is 1.00 for 2026.
Why can't you give one property tax rate for Montreal?
The city says the rate depends on the category of the building and the borough.
Do first-time buyers get relief?
Quebec has a refundable credit claimed after closing, so you still pay the duties in full on the day. We couldn't confirm the exact rules for higher-value homes.
What sales tax do you pay in Montreal?
GST at 5% plus QST at 9.975%, or 14.975% in all, on most items. These are not city taxes.
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