Transfer Taxes

In accordance with the Provincial Real Property Transfer Act, Town of Brome Lake must collect a toll on the transfer of any immovable property located on its territory. Read the by-laws here (in French).

The purchaser of the property is responsible for paying the land transfer tax.

It is important to note that the Town does not reissue property tax bills to the new purchaser. It is therefore the purchaser’s responsibility to ensure that all municipal taxes owing are paid.

The Town issues an invoice to the purchaser upon receipt of the notarized deed confirming the transfer. This invoice is payable within 30 days of the invoice date.

The taxable amount is the higher of the following amounts:

• The amount of the consideration provided for the transfer of the immovable,
• The market value of the immovable at the time of transfer (standardized value).

A municipality may, by by-law, establish a higher rate for amounts exceeding a specified threshold. Consult the by-law here.

The transfer duty is calculated using tax brackets. The rates applicable to any taxable base under $500,000 are set out in the Loi concernant les droits de mutations immobilières.

A municipality may, by by-law, provide for a higher rate on the portion exceeding a certain amount. Consult the by-law here.

The Act respecting duties on transfers of immovables also provides that the tax brackets for the transfer duty are indexed annually based on the rate set by the government order published in the Québec Official Gazette, generally no later than July 31 preceding the start of the fiscal year concerned.

In the Town of Brome Lake, for the year 2026, the real estate transfer tax is calculated based on the following rates (the thresholds are indexed annually by the government):

• On the first tranche of the tax base of $62,900: 0.5%;
• On the portion of the tax base of more than $62,900 but not exceeding $315,000: 1%;
• On the portion of the tax base that exceeds $315,000 but not exceeding $500,000: 1.5%,
• On the portion of the tax base of more than $500,000 but not exceeding $750,000 : 2.0%,
• On the portion of the tax base of more than $750,000 but not exceeding $1,000,000 : 2.5%,
• On the portion of the tax base that exceeds $1,000,000: 3.0%.

Example of a calculation for an imposed value of $772,000:

The first $62,900 at 0.5% = $314.50
Excess of $62,900 but less than $315,000, i.e. $252,100 at 1% = $2,521.00
Excess of $315,800 but less than $500,000: $185,000 at 1.5% = $2,775.00
Excess of $500,000 but less than $750,000, i.e. $250,000 at 2% = $5,000.00
Excess of $750,000, i.e. $22,000 at 2.5% = $550.00

TOTAL IMPOSED VALUE = $11,160.50

Yes. 

There are exceptions where the purchaser may be exempted, where:

• The tax base is less than $ 5,000,
• It is a transfer between parents, either in an ascending or descending direct line (son, daughter, father, mother), between spouses, between stepfather or stepmother and son-in-law or daughter-in-law, between stepfather and stepmother and stepson,
• The transfer of real property to his company by a shareholder owning more than 90% of the shares in the company or vice versa.

Several other situations of exemption are provided for in the Act respecting duties on transfers of immovable property. Your notary can provide you with information or consult the Government of Quebec’s website.

Make sure your mailing address is up to date on your notarized contract to avoid any delay in your payment.

The rules governing land transfer duties are established by the Gouvernement du Québec.

If you have any questions regarding your specific situation, we invite you to contact the Taxation Service of the Town of Brome Lake.