Toronto has charged a 10% Municipal Non-Resident Speculation Tax (MNRST) on foreign buyers of certain residential properties since January 1, 2025. It is calculated on the purchase price and paid on top of the City’s land transfer tax and Ontario’s 25% provincial tax. On a $700,000 condo, the MNRST alone is $70,000.
Pre-construction buyers are the most exposed. They signed years before the tax existed, and their closing dates are arriving now.
What changed on January 1, 2025
City Council adopted item 2024.EX11.1, a 10% levy for foreign buyers, and the City says it applies in addition to the municipal land transfer tax. Before that date a foreign buyer paid the ordinary taxes and the provincial 25%. Now there is a third layer, and in Toronto the two speculation taxes come to 35% of the price.
The City page gives the rate, the start date, the definitions, the exemptions and the rebate conditions. It doesn’t describe rules for contracts signed before the start date.
Who is a foreign buyer
A foreign national is anyone who is not a Canadian citizen or permanent resident. A foreign corporation is one incorporated outside Canada or, in some circumstances, controlled by a foreign entity. Work permits and study permits don’t change that.
Relief may be available to nominees under the Ontario Immigrant Nominee Program, to protected persons with refugee protection, and to foreign nationals who buy jointly with a spouse who is a citizen, permanent resident, nominee or protected person.
The pre-construction problem
A buyer signs with a developer, pays deposits over several years and closes when the building is registered. The land transfer taxes fall due at that final closing. A person who signed in 2022 for a unit that closes in 2026 therefore reaches the tax after the MNRST began.
Whether it applies to that closing is the question that matters, and the City’s page is silent. Some websites claim to know the answer, either way, without pointing to an official source, so we haven’t repeated them.
Ontario’s tax gives a comparison, though not a ruling. It set lower rates for agreements signed before October 25, 2022, and it counts the date of an assignment, not the original contract date. That doesn’t tell us what Toronto intends. A buyer with an older contract should get a written answer from the builder’s lawyer and from the City, and plan the cash as if the tax applies.
How much it adds
At $600,000, the MNRST is $60,000 and the provincial tax is $150,000, so the speculation taxes total $210,000. A $800,000 home carries $80,000 and $200,000, or $280,000. At $1 million it is $100,000 and $250,000, or $350,000. Ordinary land transfer tax is another $16,475 each to the province and the City at $1 million.
Run your own price through the Toronto land transfer tax calculator and the Ontario NRST calculator. The closing costs calculator covers the rest of the cash needed at closing.
Nothing is billed separately. The buyer’s lawyer works out the taxes and takes the money from the buyer’s funds when the transfer is registered. Lenders finance the property, so the taxes have to come from savings.
Rebate and federal ban
A foreign national who becomes a permanent resident within four years of the purchase may qualify for a rebate, if title is held alone or with a spouse and the home is a principal residence. The City must receive the application within 90 days of gaining status. Ontario allows 180 days for its own rebate, and the two deadlines are separate.
The federal ban on purchases by non-Canadians is set to expire on January 1, 2027. We found no official word on a replacement as of September 2026, and the provincial and City taxes have no end date. Related tools: the Down Payment calculator, plus all our Ontario housing calculators.
Sources
- City of Toronto, MLTT and MNRST information
- City of Toronto, rebate opportunities
- Ontario, NRST transitional provisions
Common questions
When did Toronto's foreign buyer tax start?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.