Amarjit (Lucky) Singh
Dollard-Des-Ormeaux, QC
Mobile: 514-817-4143 Fax: 514-685-7429 Email Amarjit (Lucky)

HOW TO CALCULATE WELCOME TAX


 

514-817-4143 Cell

 

In addition to the sale price of the property, other costs will be added after the signing of the deed of sale, for example:

The Transfer Tax on property, also known as "Welcome Tax".

The Welcome Tax is a tax that the municipality in which you purchase a property charges you.

 

The Welcome Tax is based on the greater amount of the following: 

        §   the selling price of the property, or

§   the municipal evaluation of the property

How to calculate the Welcome Tax


The welcome tax or Transfer tax is calculated in the following way:

 

  0.5%

Of the first $50,000 

($1 - $50,000)

  1%

Of the next $200,000

($50,001 - $250,000)

  1.5%

Of the remainder of the amount

(> $250,000)

 

Here are some examples:

(we assume the sale price of all properties in these examples are greater than their M.U.C. evaluation) 

 

Example #1:  Sale price $50,000

0.5% x $50,000 = $250

The amount to pay as Welcome tax or Transfer tax is $250.

 

Example # 2:   Sale price $300,000 

0.5% x  $50,000       = $250

0.1% x  $200,000    = $2,000   

1.5% x  $50,000       = $750

The amount to pay as Welcome tax or Transfer tax is $3,000.