Duties on transfers of immovables are charges that are payable when the right
of ownership on a property is transferred. The buyer is responsible for paying
these duties. Where there is more than one buyer, they are joint and severally
liable for payment of the transfer duties. Every municipality must collect
duties on the transfer of any immovable situated within its territory. (Act
respecting duties on transfers of immovables – R.S.Q., chapter D-15.1).
The duties on transfers of immovables are imposed at the time of purchase of
an immovable and are payable in one installment.
Value based
The value based corresponds to the greater of the following three
amounts:
- The amount that was actually paid for the transfer of the immovable (not
including the GST and the QST)
- The amount of the consideration1 stipulated
for the transfer of the immovable (amount shown on the deed of sale)
- The amount of the market value at the time of the transfer of the
immovable (value of the roll multiplied by comparative factor of the fiscal
year that corresponds to the registration date.
1 The following are generally regarded as
considerations:
- The value of any property listed in the notarized deed
- The amount shown in the contract
- Privileges, mortgages or other charges creating a claim against the
immovable.
Comparison factor
Where the imposition is made on the basis of the market value at the time of
the transfer, the value on the roll must be multiplied by the comparative factor
of the fiscal year that corresponds to the registration date.
Comparison factors of the city of Montréal for fiscal year 2008 to 2012:
|
Fiscal year |
Comparison factor |
| 2012 |
1.08 |
| 2011 |
1.00 |
| 2010 |
1.19 |
| 2009 |
1.11 |
| 2008 |
1.06 |
The comparison factor enables us to use a comparable basis for assessments
from different rolls.
Computation of the duties on transfers of
immovables
The tax is calculated as follows:
|
On that part of the value based |
Rate |
|
Which does not exceed $50,000 |
0.5% |
|
Which is in excess of $50,000 but does not exceed $250,000 |
1.0% |
|
Which is in excess of $250,000 but does not exceed
$500,000 |
1.5% |
|
Which is in excess of $500,000 but does not exceed
$1,000,000 |
2.0% |
|
Which exceeds $1,000,000 |
2.50% |
Calculations using $560,000 as taxable value:
|
Multiply $50,000 by 0.5% |
= |
$250 |
|
Multiply $200,000 by 1.0% |
= |
$2,000 |
|
Multiply $250,000 by 1.5% |
= |
$3,750 |
|
Then multiply $60,000 by 2.0% |
= |
$1,200 |
|
For a taxable value of $560,000 total fees will be |
:
|
$7,200
|
Calculations using $1,100,000 as taxable value:
|
Multiply $50,000 by 0.5% |
= |
$250 |
|
Multiply $200,000 by 1.0% |
= |
$2,000 |
|
Multiply $250,000 by 1.5% |
= |
$3,750 |
|
Then multiply $500,000 by 2.0% |
= |
$10,000 |
|
Then multiply $100,000 by 2.5% |
= |
$2,500 |
|
For a taxable value of $1,100,000 total fees will be |
:
|
$18,500
|
Exemption
A buyer may be exempt from paying the duties on transfers in certain cases as
set out in the Act respecting duties on transfers of immovables,
R.S.Q., chapter D-15.1. The notary must write a note in the deed of sale (or
deed of transfer) enabling the buyer to benefit from an exemption from paying
the duties on transfers, in accordance with the legislation.
Main reasons justifying an exemption:
- Transfer to an ascendant or descendant in the direct line (sale from
father to son; from grandmother to granddaughter).
- Transfer between spouses, whether they are married or civil union spouses,
as defined by Act respecting duties on transfers of immovables.
Same-sex spouses are included in this provision of the law.
- Where the transferor is a natural person and the transferee is
a legal person with 90% of its issued shares with full voting rights
are owned by the transferor.
Several other situations justifying exemption are provided for by law.
Special duties
Special duties are a form of compensation in lieu of transfer duties that are
billed to buyers whose transaction is exempted.
The Act respecting duties on transfers of immovables – R.S.Q., chapter
D-15.1), amended December 20, 1999, sets the amount of the special duties in
accordance with the transferred values:
|
Value of the property |
Amount payable |
|
Immovable less than $5,000 |
No duties |
|
Immovable of $5,000 to less than $40,000 |
Special duties equivalent to the transfer duties (0.5%) |
|
Immovable of $40,000 or more |
$200 |
Refund - Home Ownership Program
Under the Home Ownership Program for families, the city is
refunding duties on transfers of immovables since April 29, 2010 at
the request of new owners and subject to certain eligibility criteria.
Taxpayers who wish to learn more about this program and how refunds can be
obtained should visit Habiter Montréal.
For more information, please:
- Call your borough office;
- Call the 311 (island of Montréal) ou 514 872-0311 (outside Montréal);
- Send us an e-mail.
The details contained here are for information only and have no
legal value. The acts and by-laws posted on this site are for administrative
purposes only, and although efforts are made to update them, they may not be the
latest versions. Please check the sources before using the texts
officially.
