The Quebec government has introduced a new measure to ease the burden of the “welcome tax” for first-time homebuyers. As of now (retroactive to January 1, 2026), a significant portion of the transfer duties (welcome tax) can be refunded in the form of a tax credit, up to a maximum of $5,875.

The goal is to lower the overall cost of buying a property and make homeownership more accessible. That said, there are specific eligibility requirements to keep in mind, particularly when it comes to who qualifies and the purchase price of the property.

How the refund works

The first $5,000 in transfer duties is fully reimbursed. On top of that, buyers can receive 25% of any additional amount paid, up to an extra $875.

In practical terms, an eligible buyer can recover up to $5,875.

It’s important to note that this refund is not issued at the time of purchase. Instead, it comes as a tax credit that can be claimed when filing your income tax return.

Even though the money isn’t received right away, it still represents meaningful savings on the total cost of buying a home.

Who can actually benefit?

This program is specifically designed for first-time buyers.

The idea is to support people entering the housing market for the first time.

For couples, the rule is strict: both buyers must meet the eligibility criteria. If one of the two does not qualify, it can affect the eligibility for the refund.

This detail is often misunderstood, so it’s worth confirming eligibility ahead of time to avoid any surprises.

Property eligibility requirements

In addition to buyer eligibility, certain conditions apply to the property itself.

To qualify:

• The property must be purchased on or after January 1, 2026
• The purchase price must be under $1,000,000

These criteria are meant to focus the program on more affordable properties and ensure the support goes where it can have the greatest impact.

FAQ

1. What is the maximum refund?
Up to $5,875, including the initial $5,000 plus an additional portion.

2. Is the refund paid right away?
No. It’s provided as a tax credit when you file your income taxes.

3. Who qualifies as a first-time buyer?
Someone who has not owned a principal residence in the past four years.

4. Are couples eligible?
Yes, but both buyers must meet the criteria.

5. Are all properties eligible?
No. The purchase price must be under $1,000,000.

6. When does the measure apply?
For properties purchased on or after January 1, 2026.

7. Can this be combined with other programs?
Yes, including the FHSA and the Home Buyers’ Plan (HBP).

The partial refund of the welcome tax is a concrete step toward making homeownership more accessible in Quebec, especially in an active market like Montreal.
While it won’t completely change the market, it does help reduce one of the key costs associated with buying a property.

To take full advantage of it, it’s important to clearly understand the eligibility criteria and plan your purchase with Montreal’s real estate realities in mind.

Bardagi – RE/MAX du Cartier GB supports buyers in assessing their eligibility and strategically planning their real estate projects in Montreal. A structured approach helps optimize every step of the buying process.