Ontario charges a 25% Non-Resident Speculation Tax (NRST) on residential property bought by foreign nationals, foreign corporations and some trusts. The rate has applied province-wide since October 25, 2022, and it is worked out on the full price. On a $750,000 house, that is $187,500 before any other tax.
It comes on top of the regular land transfer tax. It is also separate from the federal ban on foreign purchases and from Toronto’s own 10% tax, both covered below.
Who counts as a foreign national
A foreign national is anyone who is not a Canadian citizen or a permanent resident. People registered under the Indian Act are not counted. A work permit, a study permit or a pending residence application doesn’t change the answer.
Corporations are caught too. A company is foreign if it is incorporated outside Canada, or if foreign nationals or foreign corporations control it, directly or indirectly. A trust is taxable when a trustee or a beneficiary is a foreign entity, with exceptions for mutual fund trusts, REITs and SIFT trusts.
Which homes and how much
The tax covers land with one to six single-family residences. That takes in houses, semi-detached homes, townhouses, condominiums and cottages, and since March 27, 2024 condo parking and storage units as well. Larger apartment buildings, farmland and commercial property are outside it.
If any buyer on the transfer is a foreign entity, the 25% applies to 100% of the price, not to that person’s share. A couple buying a $900,000 condo, where one is a citizen and one is not, owes $225,000 unless an exemption applies.
Exemptions at closing
Ontario recognizes three situations that remove the tax at closing. A nominee under the Ontario Immigrant Nominee Program can qualify, and so can a person with refugee protection. A foreign national married to, or in a relationship of at least three years with, a citizen, permanent resident, nominee or protected person can qualify as well.
Every buyer must certify that the home will be their principal residence within 60 days of registration, and title can be held only with eligible people. Exemptions from the ordinary land transfer tax also carry over.
Getting the tax back
Someone who pays the tax can recover it in full by becoming a permanent resident within four years of the purchase. You must live in the home as your principal residence, hold title alone or only with a spouse, and apply within 180 days of gaining status. Use Form 9996 or the ministry’s online service.
The four years run from the registration date whatever happens to the immigration file. And the buyer carries the cash for that whole time.
Older contracts, the federal ban and Toronto
Earlier rates apply to some older agreements: 20% for agreements signed from March 30 to October 24, 2022, and 15% in the Greater Golden Horseshoe from April 21, 2017 to March 29, 2022. For an assignment, the date of the assignment counts, not the date of the original contract.
The federal ban on residential purchases by non-Canadians is set to end on January 1, 2027. Work permit holders with at least 183 days left on the permit may buy, but they still owe the 25%. We found no official announcement of an extension as of September 2026, so check canada.ca.
The City of Toronto adds a 10% Municipal Non-Resident Speculation Tax, in force since January 1, 2025. In Toronto, a foreign buyer therefore faces 35% in total, while elsewhere in Ontario it is 25%. Our Toronto land transfer tax calculator covers the city’s ordinary tax.
Worked example
Take a $1 million condo bought by a foreign national with no exemption. The NRST is $250,000, and the ordinary provincial land transfer tax is $16,475 (0.5% of the first $55,000, 1% of the next $195,000, 1.5% of the next $150,000 and 2% of the last $600,000). Provincial taxes come to $266,475. Test your own price with the Ontario NRST calculator or the land transfer tax calculator. See also the Closing Costs calculator, and the full set of tax calculators.
Sources
- Ontario, Non-Resident Speculation Tax
- Ontario, NRST exemptions
- Ontario, NRST rebates and refunds
- CMHC, foreign buyer prohibition
Common questions
What is the Ontario NRST rate?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.