Montréal’s Real Estate Market: New Thresholds for Real Estate Transfer Duties

Written by Jonathan M. Fecteau and Oumaima Mouncef

Co-written with Oumaima Mouncef, articling student

On November 12, 2020, the Executive Committee of the City of Montréal approved the 2021 budget and, for the first time in its history, a Ten-year capital works program rather than a Three-year capital works program.

The City of Montréal’s 2021 budget decisions were made in the particularly challenging context of COVID-19. The pandemic has had a significant economic impact for which the City has had to put in place support measures. The City’s orientations for the year 2021 are thus influenced by its preparations for economic recovery. For example, property taxes under Municipal Council’s jurisdiction for both residential and non-residential buildings have been frozen.

According to the budget, the transfer duties, known as the “welcome tax”, will not increase the City’s revenues for the year 2021. It should be noted that in 2020, Montréal made the decision to add a new tax bracket for properties over $2 million, while the City was forecasting a $30.4 million increase in its revenues from real estate transfer duties.

The thresholds for fiscal year 2020 were as follows:

Basis of imposition

Rate

Up to $51,700

0,5%

$51,700 to $258,000

1%

$258,600 to $517,100

1,5%

$517,000 to $1,034,200

2%

$1,034,200 to $2,000,000

2,5%

From $2,000,000

3%

The thresholds for fiscal year 2021 are as follows:

Basis of imposition

Rate

Up to $52,800

0,5%

$52,800 to $264,000

1%

$264,000 to $527,900

1,5%

$527,900 to $1,055,800

2%

$1,055,800 to $2,041,900

2,5%

From $2,041,900

3%

In 2021, the comparative factor for the calculation of the transfer duties based on the market value of the property is 1.06.

For more information on this subject, we invite you to contact our Municipal Law and Expropriation team.

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