What is a land transfer tax?
It is a tax payable on the transfer of an immoveable.

Who must pay the tax?
It is the purchaser of the immoveable that must pay the tax. If there are a number of purchasers they are jointly responsible for its’ payment.

Who collects the tax?
Each municipality is required to collect a land transfer tax on the sale of any immoveable situated in its’ territory.. see :Loi concernant les droits sur les mutations immobilières – L.R.Q., c. D-15.1.

When must the tax be paid?
The tax is payable when the immoveable is acquired:
it is payable in a single instalment.

On what value is the tax assessed?
The taxi is levied on the highest of one of the three following possibilities:

• The amount actually paid for the purchase of the immoveable
  (not including any provincial or federal sales tax (TPS /TVQ)
• The consideration set out in the agreement
  for the transfer of the immoveable
• The market value at the time of transfer
  (this being the value set out on the evaluation roll multiplied by
  a comparative factor that corresponds to the date of registry)

Comparative factor
If the tax is based on the market value at the time of transfer, one must multiply the value inscribed on the evaluation roll by the comparative factor applicable to the year of the registration.

Taxable value = value set out on the evaluation roll multiplied by the comparative factor
The comparative factor for 2008 is 1.19%

The comparative factor is established each year based on a mid-range proportion that compares the sale price and the value last entered onthe evaluation roll. The use of the comparative factor permits a proper comparison between the values set out in the various evaluation rolls.

How to calculate a land transfer tax
The tax is calculated based on the following rates :

On the taxable value	RATE
Not exceeding $50,000	0,5%
Over $50 00 but under $250 000	1,0 %
Over $250 000	1,5 %