Quebec Land Transfer Tax

Alyssa Furtado
by Alyssa Furtado September 14, 2011 / 2 Comments

 

Quebec is one of the eight Canadian provinces that charges land transfer taxes on real estate property. When buying a home, some of the key points to keep in mind are the current Quebec mortgages rates, the maximum down payment that you can afford as well as the potential closing costs you may incur.

Land transfer tax is one of the major components of closing costs. It can constitute a significant total and you need to ensure that you budget accordingly.

So, Quebec land transfer tax is charged based on the market value of property on the date of registration of a title transfer. It can be calculated according to the following:

 

Property value Marginal Tax rate
First $50,000 0.5%
On $50,000 – $250,000 1.0%
Over $250,000 1.5%

If you purchase a property valued at $250,000, you can use the above table to determine what rates apply to your property.

Alternatively, you can use Ratehub.ca’s Quebec land transfer tax calculator to estimate your total land transfer tax easily. Our calculator accurately determines the land transfer tax at $2,250.

When you are on a budget and trying to work out the finances of home ownership, even $2,250 can make a difference. So, using a land transfer tax calculator before-hand is a wise move. Because if you’re not prepared, $2,250 can be an unpleasant surprise.


  • Daniel Blanchette says:

    Do I have to pay the Quebec transfer Taxes if the cottage is a gift from father to a child?