Ontario's Non-Resident Speculation Tax (NRST) is a 25% tax applied to the purchase price of residential property when the buyer is not a Canadian citizen or permanent resident. In Toronto, a separate Municipal Non-Resident Speculation Tax adds another 10%, bringing the combined foreign buyer tax to 35% of the purchase price.
The provincial NRST applies to foreign nationals, foreign corporations, and taxable trustees who purchase residential property anywhere in Ontario. It covers houses, semi-detached homes, townhouses, condominiums, and properties containing up to six single-family residences. The tax is paid at closing on top of the standard Ontario Land Transfer Tax and, in Toronto, the Municipal Land Transfer Tax. It was first introduced in 2017 at 15% for the Greater Golden Horseshoe region, later expanded province-wide, and raised to its current 25% rate in October 2022.
Toronto's Municipal Non-Resident Speculation Tax (MNRST) took effect on January 1, 2025, adding a 10% charge on residential purchases by foreign buyers within the city. On a $1 million property in Toronto, a non-resident buyer would owe $250,000 in provincial NRST and $100,000 in MNRST, totalling $350,000 in speculation taxes alone before any other closing costs.
Canadian citizens and permanent residents are fully exempt from both taxes, regardless of where they live in the world. Certain exemptions also exist for nominees under provincial immigration programs and spouses of Canadian citizens or permanent residents. Foreign nationals who later obtain permanent residency may apply for a rebate of the provincial NRST, provided they meet specific eligibility criteria and apply within 180 days of obtaining their status.
It is worth noting that these taxes exist alongside the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, which restricts most non-Canadians from purchasing residential property in Canadian metropolitan areas until January 1, 2027. Exemptions under that federal law apply to certain work permit holders, international students, and refugees who meet defined conditions.
Anyone who is not a Canadian citizen or permanent resident and is considering purchasing residential property in Ontario should consult a real estate lawyer before making an offer to understand both the tax obligations and any available exemptions.
