Property Transfer Duties (Welcome Tax)
Under the Act Respecting Duties on Transfers of Immovables, all municipalities must charge duties on the transfer of any immovable located in their territory. These duties, usually called the “welcome tax,” are payable in a single payment by the person who acquires the property within 30 days after the invoice is issued.
Transfer duties are calculated based on the highest of the following amounts:
- The price paid to acquire the property (purchase price)
- The amount of the consideration stipulated for the transfer of the property (generally, the amount shown in the sales deed)
- The market value of the property at the time of transfer, that is, the value entered in the assessment role multiplied by the comparison factor for the year in which the transfer is made The comparison factor in effect in Ville de Châteauguay for 2023 is 1.28.
The transfer duties will therefore be calculated based on the tax base brackets and the rates in effect since January 1, 2023.
Tax base bracket Rate Not exceeding $55,200 0.5% Exceeding $55,200 but not exceeding $276,200 1.0% Exceeding $276,200 but not exceeding $539,700 1.5% Exceeding $539,700 3.0%
Reminder: When you acquire a property, make sure that the portion of the municipal taxes for the period before your purchase has been paid by the former owner, since you will become responsible for all sums owing. See the Paying your tax bill section for more information.
An exemption from transfer duties is provided under the Act in some situations. The notary must add a note to the sales deed (or transfer deed) that the acquirer is eligible for exemption from the transfer duties based on the specific situations set out in the Act. Special duties may be charged in compensation for transfer duties if the transaction is exempted, however.
These are the main situations that justify exemption from transfer duties:
- Basis of taxation lower than $5,000
- Transfer of a property in a direct ascending or descending line (between parents and children)
- Transfer of a property between spouses or de facto spouses
- Transfer of a property on the death of a person directly related to the new owner
Other exemption situations concerning real estate transfer duties may also apply. Please check the Act or ask your notary.
Any municipality may charge special duties instead of the transfer duties when a property in its territory is transferred and it is deprived of the transfer duties through an exemption.
The amount of the special duties is set based on the following criteria:
Property value Amount to pay Property under $5,000 No duties Property from $5,000 to $40,000 Special duties equal to the transfer duties (0.5%) Property over $40,000 $200
The city has decreed that it will not charge special duties in the case of a death on the transfer of a property to the spouse or children in a direct line of the deceased.
According to the Act, when a property is not transferred before a notary and, consequently is not registered in the land register (sale by private writing), the acquirer must pay duties on the real estate transfer and inform the city within 90 days of the transaction.
In order to facilitate the process of disclosing the sale to the City, the acquirer can complete the form Divulgation des transferts d’immeubles non inscrits au Registre foncier (in French only).
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City Hall .
5, boulevard D’Youville
Châteauguay (Québec) J6J 2P8
From Monday to Thursday, 8:30 a.m. to noon and 1:15 p.m. to 5:00 p.m.
Friday, 8:30 a.m. to noon