Quebec residents who purchased their first home starting January 1, 2026 will be able to receive a new refundable tax credit of up to $5,875.
The program is intended to fully or partially offset the so-called “welcome tax” (taxe de bienvenue), which property buyers must pay to municipalities after the transaction is completed.
In brief
- Quebec is introducing a new refundable tax credit for first-time homebuyers.
- The maximum reimbursement amount will be $5,875.
- The measure applies retroactively to purchases made as of January 1, 2026.
- The program applies to homes priced under $1 million.
- You will be able to apply for the refund starting in October 2026.
What happened?
The Quebec government announced the launch of a new refundable tax credit for those buying a home for the first time.
The initiative is aimed at reducing the financial burden associated with paying the property transfer tax, better known as the “welcome tax.”
According to the authorities, the measure should make it easier for young families and residents entering the real estate market for the first time to access homeownership.
What is the “welcome tax”?
The property transfer tax is charged by municipalities when purchasing a house, condo, or other residential real estate.
Its amount depends on the value of the property.
In 2026, the base rates in Quebec are:
- 0.5% on the first $62,900 of value;
- 1% on the amount from $62,900 to $315,000;
- 1.5% on the amount above $315,000.
Municipalities have the right to set higher rates for expensive properties. In Montreal, additional higher rates apply to high-value properties.
How much can you get?
The new credit provides a two-tier reimbursement system.
The buyer will be able to get back:
- 100% of the first $5,000 of transfer tax paid;
- 25% of the next $3,500.
Thus, the maximum refund amount will be $5,875.
According to the government’s estimate, the average property transfer tax in Quebec in 2026 will be slightly below $5,000, so many buyers will be able to recover almost the entire amount paid.
Who is eligible for the reimbursement?
To receive the credit, several conditions must be met.
Main requirements:
- the purchased home must become the principal place of residence;
- the buyer and their spouse must not have owned a home they lived in during the year of purchase and the four previous years;
- the property value must be under $1 million.
The program applies to:
- detached houses;
- townhouses;
- duplexes and triplexes;
- condominiums;
- mobile homes;
- apartments in multi-unit residential complexes.
Separate provisions are предусмотрены for people with disabilities and families purchasing a home for a person with a disability.
When will you be able to get the money?
The government promises to implement an accelerated payment system.
This means buyers will not have to wait to file their annual tax return.
It is expected that:
- the program will be up and running by the end of summer 2026;
- applications will start being accepted in October;
- the refund will be available after the property transfer tax is paid;
- the minimum reimbursement amount must exceed $1,000.
The authorities plan to publish detailed application rules later.
What other benefits are available to first-time homebuyers?
The new credit can be combined with existing support programs.
The maximum total assistance can reach $8,444.
This amount includes:
- up to $5,875 under the new refundable credit;
- up to $1,400 under the provincial tax credit for first-time buyers;
- up to $1,169 under the federal program.
In addition, many buyers continue to use the FHSA (CELIAPP) and the HBP (RAP) program to build their down payment.
Why is this important?
In recent years, housing prices in Quebec have risen significantly, and additional costs when buying real estate have become a serious obstacle for many families.
The property transfer tax often becomes an unexpected financial hit after the deal is already done. The new credit helps reduce this burden at exactly the moment when buyers have to pay for moving, insurance, furniture, and other expenses.
Broader context
In recent years, the governments of Canada and Quebec have gradually expanded support programs for first-time homebuyers. Along with tax breaks and special savings accounts, authorities are trying to make the real estate market more accessible for young families, who are finding it increasingly difficult to save a down payment and cover related costs.
What’s next?
In the coming months, the government is expected to present a detailed procedure for submitting applications to receive the reimbursement.
Buyers who purchased a home in 2026 are advised to:
- keep the documents related to the property purchase;
- keep proof of payment of the property transfer tax;
- watch for the publication of official instructions in the fall;
- check their eligibility for the program.
Frequently asked questions
Who can receive the new tax credit?
Those who purchased their first home priced under $1 million and use it as their principal place of residence.
What is the maximum reimbursement amount?
Up to $5,875.
Does the program apply to purchases made earlier in 2026?
Yes. The program applies retroactively as of January 1, 2026.
Do you need to wait for your tax return?
No. The government promises to implement an accelerated payment system.
Can this benefit be combined with other programs?
Yes. The new credit can be combined with existing federal and provincial support measures.
Comment
For many buyers, a first home becomes the biggest financial decision of their lives. The new tax credit will not solve the problem of high real estate prices, but it can noticeably reduce upfront costs. This help will be especially tangible for young families, who after buying a home often face several large bills at once and unexpected expenses.
