Anyone who has bought a home in Quebec knows the rollercoaster high of making that big, life-changing purchase – and the sudden crash that occurs when the welcome tax bill comes in the mail, alongside its 30-day payment deadline.
The “welcome” tax, officially known as the property or real estate transfer tax, can range from a few thousand to tens of thousands of dollars, depending on how much the home was bought for.
“When any property title is changing hands, the province is taxing that transaction,” explains Dr. Brian Wenzel, an associate professor in accounting at McGill University’s Desautels Faculty of Management.
It’s a municipal-level payment that was provincially established in 1976 – an efficient way for cities to make money without having to pass by higher channels.
“This welcome tax stays inside of Montreal,” Wenzel notes. “So, it’s a nice benefit for the City of Montreal because it’s one …