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Transcorrelated methods provide an efficient way of partially transferring the description of electronic correlations from the ground state wavefunction directly into the underlying Hamiltonian. In particular, Dobrautz et al. [Phys. Rev. B, 99(7), 075119, (2019)] have demonstrated that the use of momentum-space representation, combined with a non-unitary similarity transformation, results in a Hubbard Hamiltonian that possesses a significantly more compact ground state wavefunction, dominated by a single Slater determinant. This compactness/single-reference character greatly facilitates electronic structure calculations. As a consequence, however, the Hamiltonian becomes non-Hermitian, posing problems for quantum algorithms based on the variational principle. We overcome these limitations with the ansatz-based quantum imaginary time evolution algorithm and apply the transcorrelated method in the context of digital quantum computing. We demonstrate that this approach enables up to 4 orders of magnitude more accurate and compact solutions in various instances of the Hubbard model at intermediate interaction strength ($U/t=4$), enabling the use of shallower quantum circuits for wavefunction ansatzes. In addition, we propose a more efficient implementation of the quantum imaginary time evolution algorithm in quantum circuits that is tailored to non-Hermitian problems. To validate our approach, we perform hardware experiments on the ibmq_lima quantum computer. Our work paves the way for the use of exact transcorrelated methods for the simulations of ab initio systems on quantum computers.