How much tax do you pay when you buy a house in Quebec
When you buy a house or property in Montreal, you are required to pay a property transfer tax also known as welcome tax. The amount of tax you pay is based on the value of the property. The tax rate is:
- 0.5% for properties worth less than $50,000,
- 1% for properties worth $50,000 to $250,000,
- 1.5% for properties $250,000 -$499.999,
- 2% for properties between 500,000-$999,999
- 2.5% if the property value is more than 1 Million $.
For example, if you buy a house for $300,000, you will pay a transfer tax of $4,500. The tax is paid to the municipality in which the property is located.