How does Quebec's refundable first-home tax credit work?

What the credit refunds, and what it does not

The credit targets the transfer duties paid to the municipality when buying a first home. According to the Quebec government, it refunds the first $5,000 of duties in full, then 25% of the excess, up to a maximum of $5,875. It does not touch the other costs of buying: inspection, notary, adjustments, insurance, moving. It does not reduce the down payment the lender requires, or the amount borrowed. Transfer duties are billed after the signing at the notary's office. The refund therefore arrives after the payment, never before. The buyer must fund the bill first and recover the credit later. In your purchase budget, treat the credit as a future cash return, not as a reduction of the cash needed on the transaction.

Conditions to verify before counting on it

The Quebec government describes the measure as aimed at first-home buyers. The credit is reduced progressively once a property is worth more than $750,000 and reaches zero at $1 million. Further conditions apply, notably on first-buyer status and on occupying the property as a principal residence. According to Revenu Québec, you should confirm these rules in your file, because the definition of a first home has nuances: a property previously held by a spouse, joint ownership, an inheritance, or an acquisition by a corporation. If you are buying with another person, also check how the credit is split between the buyers. Read the official page rather than any summary, including this one.

Advance payment or income tax return

You can claim the credit in two ways. Revenu Québec offers an advance payment request, available in My Account for individuals, which lets you receive the amount without waiting for the income tax return. A deadline for this request has been announced for 2026. Confirm it in your account, because it may be clarified or changed. If you do not make the advance request, or it is not eligible, claim the credit on the income tax return for the year of purchase. It then applies against tax payable or produces a refund. In both cases, keep the transfer duties bill from the municipality and the deed of sale, which prove the amount paid and the acquisition date.

Fit the credit into the budget without overestimating it

Budget the full transfer duties as a real expense, then record the credit separately as possible income. That separation protects the household if the request is refused, delayed or calculated differently than expected. It also avoids inflating the down payment with money not yet received. The credit can later rebuild a buffer after closing, pay for first repairs or reduce a more expensive debt. The QuebecTaux calculator estimates a mortgage payment, not this credit. Results are informational only, not an approval or a rate offer. For the bill itself, see the welcome tax article on the blog.

Documents and common pitfalls

Before applying, gather the deed of sale, the transfer duties bill, proof of payment and the move-in date. Common errors involve timing: a request made too early, before the duties are paid, or too late, after the advance payment deadline. Others involve eligibility, for example a property held by a spouse or a home that does not become the principal residence within the required period. If your situation goes beyond the simple case, a notary, an accountant or Revenu Québec can confirm eligibility. A mortgage broker can also help you fit the refund timeline into the purchase cash plan, without ruling on your tax file.

Checklist

• ✓Confirm the credit's eligibility conditions on the Revenu Québec page
• ✓Check that the purchase is a first home under the program
• ✓Confirm the acquisition date and the property value
• ✓Ask the municipality for an estimate of transfer duties
• ✓Budget the full transfer duties before any refund
• ✓Note the advance payment deadline in My Account
• ✓Keep the deed of sale and the transfer duties bill
• ✓Plan to occupy the home as a principal residence within the required period
• ✓Treat the credit as future income, not as down payment