Real estate transfer rights

As mentioned in section 2.1 of the Act respecting duties on transfers of immovables , the tax brackets are increased each year according to the consumer price index for Quebec.

Calculation of transfer tax

The amount of real estate transfer tax that must be paid by the purchaser of the property is calculated in two stages.

First, the tax base for the transfer tax on the property must be determined. This is the highest amount among the following three:

• the price paid for the acquisition of the property, i.e. the purchase price (not including GST or QST);

• the amount of the consideration entered in the deed of sale (for example, the total sale price less the value of the furniture);

• the value of the property entered on the assessment roll multiplied by the comparative factor to take into account the real market value of the property. You should not rely solely on the comparative factor appearing on the tax bill since it may differ from the one indicated on the assessment roll. In fact, the tax bill only reflects the comparative factor established for the first fiscal year to which the roll applies. The comparative factor may be modified subsequently, for the following fiscal years. The comparative factor for the City of Montreal in effect for the year 2025 is 1.08 and 1.00 for the City of Quebec.

Second, starting from the tax base established in the first step, the following calculation will be made for the year 2025.

2025 tax base brackets:

• 0.5% of the portion not exceeding $61,500;

• 1% of the portion exceeding $61,500 without exceeding $307,800;

• 1.5% of the portion exceeding $307,800.

However, a municipality may, by by-law, set a rate higher than 1.5% for any portion exceeding $500,000. When selling a property for an amount greater than $500,000, it is therefore important to check with the municipality concerned whether it has adopted such a by-law. However, the rate set cannot exceed 3%, except in the case of the City of Montreal.

For the City of Montreal:

• 0.5% of the portion not exceeding $61,500;

• 1% of the portion exceeding $61,500 without exceeding $307,800;

• 1.5% of the portion exceeding $307,800 without exceeding $552,300;

• 2% of the portion exceeding $552,300 without exceeding $1,104,700;

• 2.5% of the portion exceeding $1,104,700 without exceeding $2,136,500;

• 3.5% of the portion exceeding $2,136,500 without exceeding $3,113,000;

• 4% of the portion equal to or exceeding $3,113,000.

For Quebec City:

• 0.5% of the portion not exceeding $61,500;

• 1% of the portion exceeding $61,500 without exceeding $307,800;

• 1.5% of the portion exceeding $307,800 without exceeding $500,000;

• 2% of the portion exceeding $500,000 without exceeding $1,000,000;

• 2.5% of the portion exceeding $1,000,000 without exceeding $2,000,000;

• 3.0% of the portion exceeding or exceeding $2,000,000.

Example

A building located in Montreal is sold in February 2025 for $700,000. The value of the building appearing on the assessment roll is $600,000 and the comparative factor is 1.08. The tax base is therefore set at $700,000, which is the higher of the sale price ($700,000) and the market value of the building (value of the building appearing on the roll multiplied by the comparative factor: $600,000 x 1.08 = $648,000). Consequently, the transfer taxes owed to the municipality are $9,392.00, or:

• The first $61,500 multiplied by 0.5% = $307.50;

• The next $246,300 multiplied by 1.0% = $2,463;

• The next $244,500 multiplied by 1.5% = $3,667.50;

• The remaining $147,700 multiplied by 2.0% = $2,954.

For more information on real estate transfer taxes payable during a transaction, do not hesitate to contact the municipality concerned.

For the City of Montreal , you can contact the borough concerned, dial 311 (on the island of Montreal) or 514 872-0311 (from outside the island) or send an email.

For any questions, do not hesitate to contact Info OACIQ .

Last updated: November 21, 2024

Item number: 122375