Skip to main content

Where to put the “Welcome Tax” in the calculation of rent increase?

Where to put the “Welcome Tax” in the calculation of rent increase?

The welcome tax, which must be paid when buying a property in your municipality, can be very high indeed.

The answer is: there is no place reserved for the welcome tax on the calculation sheet.
According to the rent determination calculation form of the Administrative Housing Tribunal (TAL), only municipal taxes and school taxes can be indicated.

The owner must put the amount of these taxes of the previous year versus the one of the current year. So in 2023, it will be the variation:
• Municipal taxes 2022-2023 minus Municipal taxes 2021-2022
• School taxes 2022-2023 minus School taxes 2021-2022

The Association des Propriétaires du Québec (APQ) reminds you that a petition to request a review of the calculation of rent setting in 2023 be made. If you have not already signed it, we ask you to do so in order that, together, we can change things!
https://www.apq.org/actualites/articles/petition-pour-une-modernisation-de-la-methode-de-fixation-de-loyer/

Upcoming change
Some municipalities are evaluating their options for changing this tax. Québec City announced this month that a by-law will propose to increase the welcome tax on properties sold over $500,000. This regulation provides for the introduction of three new tax brackets on transfers of buildings exceeding $500,000.
This by-law which will be presented at the next municipal council states that according to data from the City of Québec:
“On the average resale price of a house of $684,000, the impact will be $920 more compared to the current transfer tax. For a $2.5 million commercial building, the variance will be an additional $20,000.
It is expected that there will be 10,500 real-estate transactions in the territory in 2023. Of these, about 9% will be affected by these new measures.”

About the author

Québec Landlords Association

Join now

Not already member of the APQ ?

Take advantage of all our services by joining now

This site uses cookies in order to provide you with the best possible user experience. By continuing to browse this site, you agree to the use of cookies.