A foreign national buying a $900,000 home in Toronto owes $225,000 of Non-Resident Speculation Tax, which is 25% of the price. Land transfer tax adds $28,950, made up of $14,475 from Ontario and $14,475 from Toronto. The taxes total $253,950, or 28.2% of the price.
What the tax is
The Non-Resident Speculation Tax, or NRST, hits foreign buyers of residential property in Ontario. The rate was 20% until it became 25% on October 25, 2022. It now covers the whole province, and no longer just the Greater Golden Horseshoe.
Who pays it
Foreign nationals pay it, meaning people who are not Canadian citizens or permanent residents. So do foreign corporations and some trusts. Citizens and permanent residents owe only the usual land transfer tax. Tick the box in the calculator to add the NRST.
Which properties are covered
The tax applies to land with at least one and at most six single-family residences. Bigger apartment buildings and commercial land fall outside it, and farmland has its own rules. For an unusual purchase, check the Ministry of Finance page.
Land transfer tax on top
The NRST sits on top of the provincial land transfer tax. In Toronto the municipal land transfer tax comes too. The calculator shows both, so you see the full bill at closing.
Exemptions, rebates and refunds
A foreign national who paid the tax can apply for a full rebate after becoming a permanent resident within four years of the purchase, provided the home is their principal residence. More conditions apply, and some buyers, such as refugees, may be exempt. Overpaid? You can ask for a refund within four years of the payment, through the Ministry of Finance online portal, with documents sent electronically. Keep every closing record.
A smaller purchase
A foreign buyer of a $600,000 home outside Toronto would owe $150,000 of NRST. Ontario land transfer tax adds $8,475, so the total is $158,475, or 26.4% of the price. A permanent resident buying the same home would pay only the transfer tax.
A flat rate, not brackets
A common mistake is to treat the NRST like land transfer tax, which rises in steps. It doesn’t. Every dollar of the price carries the same 25%. A $1,000,000 home brings $250,000 of NRST, and each extra $100,000 of price adds $25,000. Land transfer tax is a separate line.
Talk to a lawyer early
Your lawyer reports your status at closing and pays the tax along with the other funds. Mention it before you sign an agreement so the taxes can be planned. Buying through a corporation or trust brings extra rules, and a mistake there can be costly.
Buying with a spouse or partner
When one buyer is a citizen and the other a foreign national, the tax can apply to the foreign buyer’s share. The rules on shares and on transfers between spouses are detailed. Tell your lawyer who will hold title, and in what shares, before signing.
Timing and planning the cash
The tax falls due when the purchase closes. Count it in your cash needs before making an offer, alongside land transfer tax and legal fees, so 25% extra does not come as a surprise. A lower price cuts the tax, but the rate stays at 25%.
Where to go next
See Toronto’s own tax in the Toronto land transfer tax calculator. The provincial tax is in the land transfer tax calculator. Other costs go into the closing costs calculator.
Frequently asked questions
What is the Ontario NRST rate?
25% of the value of the purchase.
Where does it apply?
Across all of Ontario.
Who must pay it?
Foreign nationals, foreign corporations and some trustees.
Can I get a rebate?
Yes, if you become a permanent resident within four years and live in the home.
Is it in addition to land transfer tax?
Yes.
How long do I have to ask for a refund?
Four years from the payment date.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.