Montreal Property Tax: Your Bill and Payments Explained
Gain clarity on your obligations as a Montreal homeowner. This guide explains the municipal tax system and the financial details behind your property bill.
Property tax in Montreal is a levy on real estate, also known as immovable properties, that serves as the city’s primary source of revenue. These funds finance municipal services such as the police and fire departments, the maintenance of road infrastructure, and the upkeep of public spaces like parks and libraries. The tax applies to all property owners and is a key part of the city’s budget.
Understanding Your Property Tax Bill
Your annual property tax bill from the City of Montreal combines several distinct taxes into a single invoice. Property owners will see several line items on their bill, each representing a different financial obligation that funds various municipal services.
The largest component is the general municipal tax for city-wide services like public transit and police. The bill also includes borough taxes for neighborhood-specific services and fixed-rate service taxes. These service taxes cover the direct costs of utilities like water, waste management, and recycling collection.
How Property Tax is Calculated
Your property tax is calculated using your property’s assessed value and the municipal tax rates. The property’s value is determined by the property assessment roll, the city’s official valuation of every property. This roll is updated every three years to reflect market changes, and homeowners receive a notice detailing their new valuation when a new roll is tabled.
To soften the financial impact of large increases in property value, the city averages the change over the three-year period of the roll. For instance, if a property’s value increases by $120,000, the taxable value may increase by $40,000 each year for three years. This averaged value is then used for the calculation.
The city applies tax rates to the assessed value to determine the final amount. These rates are set annually by the central city and borough councils, causing taxes to differ between neighborhoods. Rates also vary by property category, such as residential or non-residential, and are calculated as: (Assessed Value / 100) x Tax Rate = Property Tax.
The Payment Process
Your annual tax bill, mailed at the end of January, contains the 18-digit account number and payment stubs needed for payment. It is the owner’s responsibility to ensure payment is made, even if a mortgage lender is expected to handle it.
Payment can be made online through a financial institution, via a pre-authorized debit plan, in person at a bank, or by mailing a cheque. If your bill is $300 or more, you can pay in two installments. For 2025, the due dates are March 3 and June 2. Missing a deadline results in daily interest and penalties on the overdue amount.
Contesting Your Property Assessment
If you believe your property’s valuation is incorrect, you can request a review. To support your claim, you must provide evidence, such as the sale prices of comparable properties, showing your valuation is too high. Disagreeing with the tax amount alone is not a valid reason for a review.
An Application for Review must be filed with the city’s assessment department online or by mail. The deadline is April 30 of the first year a new assessment roll is in effect. You must continue to pay your tax bills during the review. If the valuation is lowered, any overpayment will be adjusted.
If you disagree with the review’s outcome, you can appeal to the Administrative Tribunal of Québec. This appeal must be filed within 60 days of receiving the assessor’s response. The tribunal provides an independent forum to hear your case.
Property Transfer Duties (Welcome Tax)
Separate from annual property tax is a one-time charge known as property transfer duties, or the “welcome tax.” This tax is levied on the buyer when a property changes ownership. The bill is sent to the new owner four to six weeks after the transaction is registered and is payable in a single installment.
The welcome tax is calculated on a progressive scale applied to the tax base, which is the highest of the purchase price, the amount in the deed of sale, or the property’s market value. For 2025 in Montreal, rates begin at 0.5% on the first $61,500 and increase through several brackets for higher-value properties. For example, a property with a $700,000 tax base would incur a welcome tax of $9,392.