First-time homebuyers in Quebec will soon see some relief on one of the largest upfront costs tied to a home purchase, with the provincial government introducing a new rebate on the land transfer tax.
Premier Christine Fréchette announced that buyers will be eligible for a refundable tax credit of up to $5,875 to offset the so-called “welcome tax,” a levy paid when property changes hands. The measure applies retroactively to purchases made as of January 1, 2026.
Under the program, the province will fully reimburse the first $5,000 of the tax, with an additional 25% covered on any remaining amount, up to a maximum of $875.
The rebate begins to phase out for homes valued above $750,000 and is eliminated entirely for properties priced at $1 million or more, signalling a clear focus on entry-level buyers.
Fréchette said the goal is to direct support toward those facing the greatest barriers to entering the market, particularly younger households contending with sharply higher home prices. “We are going to ensure the government aid helps those who truly need it,” she said in Laval during her first announcement as premier earlier this week.
The province estimates the measure will benefit roughly 38,000 households annually, at a cost exceeding $140 million. On average, eligible buyers are expected to receive about $3,700 in financial relief.
The rebate will be delivered through the tax system, with payments expected to begin later this year.
Eligibility is restricted to true first-time buyers, defined as those who have not owned a home in the past four years. In the case of couples, both partners must meet that condition to qualify.
The new incentive adds to existing federal programs such as the Home Buyers’ Plan and the First Home Savings Account, both of which are designed to reduce barriers to homeownership.
While the measure lowers upfront costs, questions remain about its broader impact on affordability. CMHC warned last week that demand-side incentives can put upward pressure on prices if new supply doesn’t keep pace. In some scenarios, broad-based supports would require as many as 28,000 additional housing starts annually to offset the added demand.
Fréchette pushed back on concerns that the rebate could contribute to higher prices, noting that the program targets a relatively small share of the market—about 15% of transactions—and is designed to be narrowly focused.
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Last modified: April 19, 2026