‘Welcome tax’ helps Quebec cities generate their own revenue
In 2022, Quebec’s so-called ‘welcome tax’ generated more than $1.4 billion for municipalities, with Montreal alone pulling in more than $410 million. Though it sounds like a penalty for new arrivals, its name is actually derived from former Quebec cabinet member Jean Bienvenue, who tabled the bill proposing the tax; Bienvenue’s surname translates into English as ‘welcome’. These municipal-level real estate transfer taxes can range from a few thousand to tens of thousands of dollars, and property buyers must pay within 30 days of closing their purchase.
“When a property title changes hands, the province taxes that transaction,†says Brian Wenzel, Associate Professor of Accounting at Â鶹AV Desautels. The municipal-level tax was added in 1976, giving cities a degree of independence from the Assemblée nationale. “The welcome tax stays inside Montreal. It’s a nice benefit for the city because it’s one of the few areas where the city can actually raise revenue without having to ask Quebec City.â€
