Editor's note, October 6, 2026: this article was reviewed and rewritten in our accuracy check. An earlier version contained refund counts, enforcement totals and market-share figures we could not trace, and it left out Toronto's municipal non-resident tax; they have been removed or replaced with figures from the sources listed at the end of the article.
Ontario's Non-Resident Speculation Tax (NRST) is 25% of the purchase price when a foreign national, foreign corporation or taxable trustee buys residential property anywhere in Ontario. The rate has been 25%, province-wide, since October 25, 2022. It applies to land containing at least one and not more than six single-family residences: detached and semi-detached houses, townhouses and condominium units.
Toronto adds its own 10%
Since January 1, 2025, the City of Toronto charges a municipal non-resident speculation tax of 10% on the same kind of purchase in the city, on top of the municipal land transfer tax. There is no grandfathering for agreements signed before 2025. Worked example: on a $1,000,000 Toronto condo bought by a foreign national, the NRST is $250,000 and the municipal tax $100,000, in addition to $32,950 of provincial and municipal land transfer tax.
Who pays
- Foreign nationals: people who are not Canadian citizens or permanent residents.
- Foreign corporations, including Canadian corporations controlled by foreign nationals.
- Taxable trustees, where a foreign entity is a trustee or beneficiary.
Canadian citizens and permanent residents do not pay NRST, wherever they live.
Exemptions at purchase
Ontario exempts a buyer who, on the day of the purchase, is:
- a nominee under the Ontario Immigrant Nominee Program;
- a protected person (granted refugee protection under section 95 of the Immigration and Refugee Protection Act); or
- the spouse of a Canadian citizen, permanent resident, nominee or protected person, buying jointly with that spouse.
Toronto's municipal tax has matching exemptions for protected persons and spouses. Each exemption has conditions and must be claimed when the transfer is registered, so talk to your lawyer before you sign.
The permanent-resident rebate
If you paid NRST and become a permanent resident within four years of the purchase, you may get it back. You must apply within 90 days of becoming a permanent resident (and no later than four years and 90 days after the tax was paid), and meet the occupancy conditions on Ontario's rebate page. The old rebates for international students and foreign nationals working in Ontario were ended for purchases after March 29, 2022, and their transitional application deadline has passed.
The federal ban on foreign buyers
Separately, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act has barred most non-Canadians from buying residential property in Canada since January 1, 2023, with exceptions. In February 2024 it was extended to January 1, 2027. As of this update no further extension had been passed, so unless Parliament acts the ban ends on that date. The NRST and Toronto's tax are provincial and municipal laws and are not affected by the end of the federal ban.
Frequently asked questions
I'm a Canadian citizen living abroad. Do I pay NRST?
No. NRST depends on citizenship or permanent-resident status, not where you live. Income-tax residency is a separate question.
Does NRST apply to commercial property?
It applies to land with one to six single-family residences. Other property, such as a building with more than six residential units or purely commercial land, is outside the tax; your lawyer will confirm for a specific property.
Can I claim the first-time buyer land transfer tax refund?
Ontario's first-time buyer refund requires that you be a Canadian citizen or permanent resident; ask your lawyer about the timing rules if you become a permanent resident after the purchase.
This is general information, not legal advice. Talk to a real estate lawyer about your status before you sign an agreement. Ask Zara, Summitly's AI virtual agent, can help you prepare questions.
