Toronto charges a Municipal Non-Resident Speculation Tax (MNRST) of 10% of the purchase price on certain residential properties bought by foreign buyers. It took effect on January 1, 2025, and the City says it applies in addition to the municipal land transfer tax. Foreign buyers in Toronto also owe Ontario’s 25% tax, so the two speculation taxes add up to 35%.
That combined figure holds only inside the city. Everywhere else in Ontario, the provincial 25% is the whole speculation tax.
What the City adopted
City Council adopted item 2024.EX11.1, Municipal Non-Resident Speculation Tax on Foreign Buyers of Residential Property. The City describes the tax as applying to certain residential properties. It doesn’t list every property type on its page, so assume coverage follows the provincial tax, which reaches land with one to six single-family residences.
The lawyer handling the closing collects it with the other taxes when the transfer is registered. There is no separate return.
Who pays and who is exempt
A foreign national is an individual who is not a Canadian citizen or permanent resident. A foreign corporation is incorporated outside Canada or, in some circumstances, controlled by a foreign entity. A work permit or study permit doesn’t change that.
The City page lists three groups that may qualify for relief: nominees under the Ontario Immigrant Nominee Program, protected persons with refugee protection, and foreign nationals who buy jointly with a spouse who is a citizen, permanent resident, nominee or protected person. A friend on title doesn’t count.
How the taxes stack up
Ordinary land transfer tax applies as well, in Ontario and in Toronto. On a $1 million home each is $16,475. For a foreign buyer with no exemption, the four amounts are:
- Ontario land transfer tax: $16,475
- Toronto land transfer tax: $16,475
- Provincial NRST at 25%: $250,000
- Toronto MNRST at 10%: $100,000
The total is $382,950. On $600,000, each ordinary tax is $8,475, the NRST is $150,000 and the MNRST is $60,000, for $226,950. Check other prices with the Toronto land transfer tax calculator and the Ontario NRST calculator.
The rebate for new permanent residents
A foreign national who becomes a permanent resident within four years of the purchase may qualify for a rebate. Title must be held by the buyer alone or with a spouse, the home has to stay a principal residence, and the City must receive the application within 90 days of the day permanent residence is granted.
The City’s page says no rebates are available for international students or for foreign nationals working in Ontario as such. The province allows 180 days for its own rebate, so there are two separate deadlines. Miss the City’s 90 days and the money is gone, even if the provincial claim is filed on time.
Contracts signed before 2025
This worries pre-construction buyers most. The City page gives January 1, 2025 as the start date and describes no transitional rules that we could find. Some websites say there is no grandfathering, and others say old contracts are safe. We couldn’t confirm either from an official source.
Ontario’s own tax is a guide, not a ruling. It set earlier rates for agreements before October 25, 2022, and for an assignment it counts the date of the assignment. A buyer with an older contract should ask the lawyer and the City for a written answer, and budget for the tax until told otherwise.
The federal ban
The federal ban on residential purchases by non-Canadians is set to expire on January 1, 2027. Work permit holders with at least 183 days left on the permit can buy, but the taxes still apply unless an exemption fits. We found no official word on an extension as of September 2026. See also the Closing Costs calculator, and the full set of tax calculators.
Sources
- City of Toronto, MLTT and MNRST information
- City of Toronto, rebate opportunities
- Ontario, Non-Resident Speculation Tax
Common questions
Is there a 10% foreign buyer tax in Toronto?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.