HomeHow much is land transfer tax in Quebec?
The average land transfer tax in Quebec is $14,288 — which is the provincial tax based on the average home price in Canada. It is important to know the key aspects of land transfer tax in Quebec. This includes who is responsible for paying land transfer tax to strategies that will help you avoid paying land transfer tax.
Quebec land transfer tax
When you purchase land in Quebec you will have to pay a provincial land transfer tax that is calculated as a marginal tax based on the purchase price of the home. Land transfer tax in Quebec is always paid by the buyer — this is also true when purchasing a home elsewhere in Canada.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| More than $55,000 up to $250,000 | 1% |
| More than $250,000 up to $400,000 | 1.5% |
| More than $400,000 up to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
How to avoid paying land transfer tax in Quebec
There are a few situations in which you can avoid paying land transfer tax in Canada. It is important to consult and expert to know if you are required to pay land transfer tax. Some potential situations that allow for land transfer tax exemptions in Quebec are:
- property transfers betweeen spouses
- property transfers of farmed land between family members
- property transfers to a family business corporation
Land transfer tax rebates in Quebec
There is a first-time home buyer land transfer tax rebate in Quebec which helps reduce the amount of provincial land transfer tax paid when purchasing a home in Quebec. The maximum rebate offered in Quebec is $4,000 which would cover land transfer tax on homes valued up to $368,000 in full.
Quebec land transfer tax example
Let's see how much land transfer tax you would have to pay if you purchased a home in Quebec for $750,000. You would have to pay $10,975 in land transfer taxs if your purchased this $750,000 home in Missisauga Quebec.
-
First $55,000
$55,000 home value
x 0.50% tax rate
= $275 land transfer tax
-
More than $55,000 up to $250,000
$195,000 home value
x 1.00% marginal tax rate
= $1,950 land transfer tax
-
More than $250,000 up to $400,000
$150,000 home value
x 1.50% marginal tax rate
= $2,250 land transfer tax
-
More than $400,000 up to $2,000,000
$325,000 home value
x 2.00% marginal tax rate
= $6,500 land transfer tax
-
All tiers
$275 + $1,950 + $2,250 + $6,500
= $10,975 total Alberta land transfer tax
