Municipal Assessment vs Market Value: Why They Differ in Montreal

Your tax bill shows one value. A similar property on your street just sold for a very different price. Which one is right? In fact, they measure different things, at different dates, for different purposes. Understanding the gap helps you avoid two common mistakes: setting an asking price from your tax bill, or overpaying because a high municipal assessment seems to guarantee the value.

At a glance

• The municipal assessment is a mass appraisal done by the City to share out property taxes. For Montreal's 2026-2027-2028 roll, it reflects the market as of July 1, 2024.
• Market value is the most likely price for your property today, given its condition, its specific features and recent comparable sales.
• The two can differ significantly, up or down.
• The municipal assessment is used for municipal and school taxes, and can serve as the base for the welcome tax. Market value is what you use to set an asking price or make an offer.

The municipal assessment: a snapshot of the past, taken from a distance

According to the City of Montreal (https://montreal.ca/sujets/valeur-fonciere-dune-propriete), the value on the roll is the "exchange value on a free and open market", meaning the most likely sale price in an arm's-length transaction. But the assessor sets it based on the market as it was 18 months before the roll takes effect. For the 2026-2027-2028 rolls, that reference date is July 1, 2024, and the same value is used for three years.

The City assesses hundreds of thousands of properties. It uses three methods, alone or combined:

• comparison: the likely price based on sales of similar properties in the same neighbourhood;
• cost: the cost of replacing the building new, minus depreciation, plus the value of the land;
• income: the value derived from the net income the property can generate, useful for revenue properties.

The main factors are location, lot size, building dimensions, age (adjusted for major renovations or additions), construction quality and, where applicable, income. The assessor generally does not visit every property, so a renovated kitchen, a foundation that needs work or an open view is not always taken into account.

Market value: the likely price today

Market value, on the other hand, is set at the moment you sell or buy. It reflects what a mass appraisal cannot see:

• the actual condition of the property and the work to plan for;
• specific features: orientation, natural light, layout, parking, yard;
• the most recent comparable sales, in the same area and for the same type of property;
• the current balance between supply and demand, which may have shifted a lot since the roll's reference date.

In practice, it is estimated in two ways. A real estate broker can prepare a comparative market analysis based on recent sales. A chartered appraiser can produce a formal appraisal report, often required by a lender or in a legal context (estate, separation, dispute).

Why the gap can be large

Several reasons explain why a property can sell far from its assessed value:

1. Time: the market has moved between July 1, 2024 and the date of the sale.
2. Condition: major renovations, or major work still to be done, are not always reflected on the roll.
3. Scarcity: in areas where few comparable properties sell, such as some streets in the Town of Mount Royal (TMR) or Outremont, a mass appraisal has little data to work with.
4. Property type: single-family homes, condos and plexes do not follow the same trends.

Key point: neither a high nor a low assessed value proves on its own that an asking price is fair. Only recent comparable sales can do that.

What each one is used for

Municipal assessment and market value: uses

• Who sets it? — Municipal assessment: The City's assessor; Market value: The market (estimated by a broker or a chartered appraiser)
• Reference date — Municipal assessment: July 1, 2024 for Montreal's 2026-2028 roll; Market value: The time of the transaction
• Used for — Municipal assessment: Calculating municipal and school taxes; possible base for the welcome tax; Market value: Setting an asking price, preparing an offer, obtaining financing
• Reflects actual condition? — Municipal assessment: Partly; Market value: Yes

Link with the welcome tax: in Montreal, the transfer duty is calculated on the highest of the price paid, the price stated in the deed and the assessed value multiplied by the comparative factor (1.00 in 2026). See our guide to the Montreal welcome tax in 2026.

What if you think your assessment is too high?

The City of Montreal (https://montreal.ca/demarches/demander-une-revision-du-role-devaluation-fonciere) lets you request an administrative review. For a new roll, the deadline is the later of: before May 1 following the roll's entry into force, or 60 days after the assessment notice was sent. For the roll that took effect in 2026, the first deadline has therefore passed. A request is still possible after a notice of amendment (for example following renovations), within 60 days of it being sent.

• Accepted grounds: defects in the building, nuisances, economic situation (rental losses, high expenses, sales of comparable properties).
• Grounds not accepted: the amount of taxes payable, or a comparison with your neighbours' assessed values.
• Non-refundable fees: $90 if the assessed value is $500,000 or less; $360 up to $2,000,000; $605 up to $5,000,000; $1,215 above that.
• Appeal: if no agreement is reached with the assessor, an appeal can be filed with the Tribunal administratif du Québec within 60 days of the assessor's response.

Before filing, the City recommends checking property sales in your area (https://montreal.ca/demarches/consulter-les-ventes-de-propriete-de-son-secteur). We have also published an article on contesting your municipal assessment in Montreal.

Frequently asked questions

What is the reference date of Montreal's 2026-2028 assessment roll?

July 1, 2024. The City of Montreal sets roll values based on market conditions 18 months before the roll takes effect.

Can I set my asking price based on my municipal assessment?

It is not recommended. The municipal assessment reflects the market at a past date and does not always account for the property's actual condition. An asking price should be based on recent comparable sales.

Is the amount of my taxes a valid reason to contest my assessment?

No. According to the City of Montreal, the amount of taxes payable and a comparison with neighbours' assessed values are not valid grounds. Sales of comparable properties, defects and nuisances can be.

What is the difference between a broker's market analysis and a chartered appraisal?

A broker's comparative market analysis is mainly used to set an asking price. A chartered appraiser's report is a formal appraisal, often required by a lender or in a legal context.

Related reading

Montreal welcome tax in 2026

Contesting your municipal assessment in Montreal

Sources, method and limitations

• City of Montreal, "Valeur foncière d'une propriété" (in French) (https://montreal.ca/sujets/valeur-fonciere-dune-propriete): reference date, factors and assessment methods.
• City of Montreal, "Demander une révision du rôle d'évaluation foncière" (in French) (https://montreal.ca/demarches/demander-une-revision-du-role-devaluation-fonciere): deadlines, grounds, fees and appeals.
• City of Montreal, "Comment sont calculés les droits sur les mutations immobilières" (in French) (https://montreal.ca/articles/comment-sont-calcules-les-droits-sur-les-mutations-immobilieres-9279): 2026 comparative factor.

This article describes the City of Montreal's rules. Other municipalities in the agglomeration, including the Town of Mount Royal and Westmount, have their own notices and procedures. Review fees may change without notice. Information current as of October 5, 2026; this is not legal advice.

Want to know your property's current market value, based on comparable sales in your area? Request a valuation or call us at 514-700-1221.

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