How much house can I afford in Quebec?
Quebec uses the national GDS (39%) and TDS (44%) limits. Its own costs are transfer duties, the "welcome tax": 0.5%, 1% and 1.5% by default in 2026, with municipalities allowed to charge more above $500,000, and no provincial first-time exemption. The CMHC premium is taxed at 9%, rising to 9.975% in 2027. On $450,000, default duties are $4,861.
Worked examples use 4.12%, the Bank of Canada's average effective rate on new insured 5-year-plus fixed mortgages (2026-08), and are recalculated whenever our rules or rates are updated.
What's different about buying in Quebec
Quebec's lending rules are the national ones (GDS up to 39%, TDS up to 44%, at the stress-test rate). Three things about the cash side are specific to Quebec:
- Transfer duties, often called the welcome tax, charged by the municipality on brackets that are indexed every January. Above $500,000, municipalities can set their own higher rate.
- No first-time buyer exemption from the duties at the provincial level.
- Tax on the CMHC premium, 9% today and 9.975% for premiums paid after December 31, 2026. It is paid in cash, not added to the mortgage.
Transfer duties (the welcome tax)
The Act respecting duties on transfers of immovables sets the default rates. For 2026 they are:
| Portion of the base | Rate |
|---|---|
| $0 to $62,900 | 0.5% |
| $62,900 to $315,000 | 1.0% |
| Above $315,000 | 1.5% |
On a $450,000 purchase the default duties work out slice by slice: $315 on the first $62,900, $2,521 on the part up to $315,000, and $2,025 on the rest, for $4,861 in total. The same Act lets a municipality set a higher rate on the part of the base above $500,000, capped at 3% everywhere except Montréal, which has its own table with rates up to 4%. Many municipalities use that power, so above $500,000 the default figure is a floor, not a quote.
2027 indexation and the municipal maximum
The bracket thresholds rise each January. Quebec has published the 2027 amounts: $64,400 and $322,600, up from $62,900 and $315,000, an increase of about 2.4%. Higher thresholds mean slightly lower duties at the same price: on a $600,000 home the default bill falls by $46. The rates themselves don't change. The last column shows the most a municipality other than Montréal could charge in 2026, using the 3% ceiling above $500,000.
| Example price | 2026 default | 2027 default | 2026 with a 3% municipal rate above $500,000 |
|---|---|---|---|
| $300,000 | $2,686 | $2,678 | $2,686 |
| $450,000 | $4,861 | $4,815 | $4,861 |
| $600,000 | $7,111 | $7,065 | $8,611 |
| $800,000 | $10,111 | $10,065 | $14,611 |
Your municipality's actual rate above $500,000 may be anywhere between the two. Ask your notary, or check the municipality's own page, before you rely on a number.
Tax on the CMHC premium, now and in 2027
CMHC says premiums in Quebec, Ontario and Saskatchewan are subject to provincial sales tax, which cannot be added to the loan. Revenu Québec announced that the tax on insurance premiums will rise from 9% to 9.975%, matching the QST, for premiums paid after December 31, 2026. With the minimum down payment:
| Example price | Premium (financed) | Tax at 9% | Tax at 9.975% |
|---|---|---|---|
| $350,000 | $13,300 | $1,197 | $1,327 |
| $500,000 | $19,000 | $1,710 | $1,895 |
| $700,000 | $26,200 | $2,358 | $2,613 |
The increase is small in dollars, but if you are closing around the new year, ask your lender which rate will apply to your premium.
Property tax and the school tax
Municipal property tax rates vary across Quebec, so our example uses a generic 0.75%. One piece is uniform: Quebec sets a single school tax rate for the province, 0.07899 per $100 of value for 2026-27, applied after a $25,000 exemption. On a $450,000 home that is about $336 a year, on top of the municipal bill. The Montréal guide works through the full municipal and school bill for two boroughs, using the City's 2026 rates.
A Quebec affordability example
A first-time buyer household earning $105,000, with a $45,000 down payment (closing costs come on top) and $400 a month of other debts, at an example rate of 4.12% over 25 years, with an example 0.75% property tax and $100 a month for heat. The lender maximum is about $491,600 (GDS). At that price the default transfer duties are $5,485 and the 9% tax on the premium is $1,608.
| Household income | Down payment | Maximum price | Transfer duties | Tax on premium | Cash to close |
|---|---|---|---|---|---|
| $75,000 | $25,000 | $328,800 | $3,043 | $1,094 | $31,836 |
| $105,000 | $45,000 | $491,600 | $5,485 | $1,608 | $54,792 |
| $140,000 | $70,000 | $673,900 | $8,219 | $1,685 | $82,604 |
| $180,000 | $110,000 | $888,700 | $11,441 | $2,173 | $126,314 |
Cash to close adds the down payment, duties, premium tax and our planning estimates of $1,800 for the notary, $350 for title insurance and $550 for an inspection. Where the price is above $500,000, your municipality's own rate may add to the duties shown.
Next steps
- Run your numbers in the affordability calculator with Quebec or Montréal selected.
- Price the premium and its tax with the CMHC insurance calculator.
- Buying in Montréal? Read the Montréal guide for the city's own duty brackets and borough tax rates.
Run the numbers for Quebec (other)
This calculator starts with Quebec (other)'s transfer tax and first-time relief. Open your full affordability plan set to Quebec (other).
Closing costs and land transfer tax calculator
Cash you need on closing day on top of your down payment.
| Quebec transfer duties (2026 provincial brackets) | $7,861 |
|---|---|
| Sales tax on the CMHC premium | $1,632 |
| Legal / notary | $1,800 |
| Title insurance | $350 |
| Inspection / appraisal | $550 |
| Total | $12,193 |
Estimate, not advice. Your lawyer or notary prepares the final statement of adjustments, including property-tax and utility adjustments not shown here.
Closing costs $12,193, of which land transfer tax or fees $7,861.
Assumptions & sources
Assumptions
- Transfer tax is calculated on the purchase price (NB, PE and NS use the greater of price or assessed value).
- First-time buyer rebates assume you meet every condition (residency, occupancy, never owned).
- Legal, title insurance and inspection figures are our planning estimates; get quotes.
Frequently asked questions
How much is the welcome tax in Quebec on a $450,000 home?
$4,861 using the 2026 default brackets (0.5% to $62,900, 1% to $315,000, 1.5% above). Montréal uses its own higher brackets, and other municipalities can charge more above $500,000.
Do first-time buyers pay the welcome tax in Quebec?
Yes. Quebec has no provincial first-time buyer exemption from transfer duties. Montréal runs a separate assistance program for some buyers; check its terms with the City.
What tax applies to CMHC insurance in Quebec?
9% of the premium today, rising to 9.975% for premiums paid after December 31, 2026. It is paid at closing and cannot be added to the mortgage.
What are the 2027 welcome tax brackets?
The 2027 thresholds are $64,400 and $322,600, up from $62,900 and $315,000 in 2026. The rates stay at 0.5%, 1% and 1.5%.
Primary sources
- LégisQuébec — Act respecting duties on transfers of immovables (D-15.1), s. 2. Checked .
- Gouvernement du Québec — Transfer-duty brackets for 2027 (effective January 1, 2027). Checked .
- CGTSIM — Understanding school tax (2026-27 rate). Checked .
- CMHC — Calculating GDS / TDS. Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .