Quebec Welcome Tax (Land Transfer Tax) Guide: Reassessments, Exemptions, and How to File an Objection — CPA Firm Near You, Montreal

Introduction

Quebec’s Welcome Tax (land transfer tax) is one of the most misunderstood real estate costs for buyers. Many property owners overpay due to incorrect municipal evaluations, misclassified property types, or overlooked exemptions. In Montreal especially, reassessment errors are common — and thousands of dollars can be refunded if challenged correctly. This guide explains how the Welcome Tax is calculated, when you can request a revision, and how a CPA firm near you in Montreal can help you file a strong objection and recover overpaid taxes.

Legal and Regulatory Framework

Under the Act Respecting Duties on Transfers of Immovables, municipalities charge a land transfer tax when a property changes ownership. The tax is calculated using:
• The greater of the sale price, municipal evaluation, or market value
• A tiered percentage rate based on municipality
Buyers may qualify for exemptions (e.g., transfers between family members, corporate rollovers, certain reorganizations), but strict legal conditions apply. Municipalities rely heavily on property evaluations, which are often outdated or incorrect at the time of sale. Requests for revision must follow statutory timelines and be supported by valuation evidence.

Key Court Decisions

Courts have ruled that buyers can successfully challenge Welcome Tax amounts when municipal valuations are clearly above market value on the date of transfer. Judges emphasize the need for credible appraisal evidence to override municipal assumptions. Cases also confirm that exemptions must be interpreted strictly; transfers not meeting precise legal criteria are denied. Courts have repeatedly stated that refusal to revise without reviewing evidence is invalid — municipalities must consider legitimate appraisal reports.

Why Municipalities Reassess Welcome Tax Incorrectly

Reassessments often fail because:
• Municipal evaluation rolls lag behind actual market values
• Triplex or commercial classifications are incorrect
• Renovations were not yet completed or overstated
• City assessors use outdated comparables
• Corporate transfers are misunderstood
• Buyers mistakenly believe the municipal evaluation is fixed or non-contestable

Montreal, Laval, and Quebec City receive thousands of revision requests every year.

Mackisen Strategy

At Mackisen CPA Montreal, we help homeowners and investors challenge Welcome Tax amounts by:
• Reviewing the evaluation roll and sale documents
• Obtaining or analyzing independent appraisals
• Preparing valuation comparisons (market vs municipal)
• Drafting legal argument letters for objections
• Filing objections within statutory deadlines
• Coordinating with evaluators and municipal assessors
• Preparing TAQ-ready files if escalation is required

We ensure every valuation argument is supported with evidence, municipal law, and case precedents to maximize the chance of a reduction.

Real Client Experience

A Montreal homeowner received a Welcome Tax based on an outdated municipal evaluation that was $200,000 higher than the property's actual value at the date of transfer. We prepared a full objection file supported by an independent evaluator. The municipality revised the assessment and refunded several thousand dollars. Another client purchasing a plex was assessed using the wrong building classification; we corrected the roll entry and reduced the land transfer tax significantly.

Common Questions

Can I contest my Welcome Tax in Quebec?

Yes. If the municipal evaluation used is incorrect or higher than market value, you have the right to file an objection.

What documents do I need?

Purchase act, municipal evaluation roll, appraisal, comparables, and municipality correspondence.

Do exemptions exist?

Yes, but only for specific situations (family transfers, corporate reorganizations, etc.), and strict rules apply.

How long do I have to contest?

Typically 90 days from receiving the Welcome Tax invoice.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Quebec homeowners contest incorrect Welcome Tax assessments and recover thousands in overpaid tax. Whether your property was overvalued or misclassified, our expert team ensures precision, transparency, and strong legal argumentation.