Updated Checked by the Tax-Services.ca editorial team How we check
There is no single foreign buyer tax in Canada. Three provinces charge one on top of the normal land transfer tax: Ontario takes 25% of the price anywhere in the province, British Columbia takes 20% in five regional districts, and Nova Scotia takes 10% from buyers who don’t live there. Separately, a federal ban on buying residential property is in force until 1 January 2027, and it doesn’t care what you’re willing to pay.
Which provinces charge a foreign buyer tax?
Ontario’s version is the Non-Resident Speculation Tax. It applies to homes with one to six single-family units, and since 27 March 2024 it also reaches standalone condo parking and storage units. Ontario’s own page gives the rate as 25% from 25 October 2022. Some older sources give a different start date, so we quote the government page.
British Columbia calls its charge the additional property transfer tax. It covers Metro Vancouver, the Capital, Fraser Valley, Central Okanagan and Nanaimo regional districts, and nothing outside them. Nova Scotia has a non-resident deed transfer tax of 10%, with an exemption if you prove you live there.
| Where | Rate | Applies to |
|---|---|---|
| Ontario | 25% | Whole province, land with one to six single-family residences |
| British Columbia | 20% | Five regional districts, residential property |
| Nova Scotia | 10% | Residential property with three dwelling units or fewer |
| Federal ban | Not a tax | Residential property bought by non-Canadians, in force to 1 January 2027 |
Prince Edward Island, Manitoba and Saskatchewan go another way and limit how much land a non-resident can hold. We couldn’t read the details on an official page, so check the province before you make an offer.
Who counts as a foreign buyer?
Here’s the part that surprises people. In Ontario the test is your status, not where you live for tax. In the province’s wording, a foreign national holds neither Canadian citizenship nor permanent residence. A Canadian corporation controlled by a foreign entity counts too, and so does a trust with a foreign trustee or beneficiary.
So a Canadian citizen working in Dubai isn’t a foreign buyer. A newcomer on a work permit who lives in Toronto is. The federal ban uses the same idea of a “non-Canadian”, with exceptions such as protected persons, some temporary residents who meet set conditions, and purchases made together with a citizen or permanent resident spouse or partner. The detailed conditions sit in the regulations, and we didn’t read them in full.
What does it cost on a $900,000 home?
We ran the numbers through our non-resident buyer tax calculator. Buy at $900,000 and Ontario’s bill is $225,000, while BC’s is $180,000. That’s a quarter or a fifth of the price, so this is a deal-breaker for most budgets, not a rounding error. In Nova Scotia the same price gives $90,000 at 10%, assuming the assessed value isn’t higher than the price.
The regular tax is separate. For the same $900,000 in Toronto, the land transfer tax calculator shows $28,950 (Ontario $14,475 plus Toronto’s own $14,475). You owe both, so the Toronto foreign buyer total is $253,950 before legal fees.
Then look at the mortgage. A buyer who has to fund a $225,000 tax at closing needs that cash on top of the down payment. Try the mortgage payment calculator for the loan itself, and remember lenders may treat non-resident applicants differently. We can’t confirm any lender’s rules.
Does the tax change if only one buyer is foreign?
It depends on the province, and the difference is big. Ontario’s page says that if any buyer is a foreign entity, the 25% applies to the full price, whatever share that buyer holds. BC states its 20% as a rate on the fair market value of your proportionate share, and Nova Scotia works the same way, taxing the share going to the non-resident.
Take that $900,000 home bought half and half by a foreign buyer and a Canadian citizen. Ontario still charges $225,000. BC’s tax on a 50% share is 20% of $450,000, so $90,000. Nova Scotia’s is 10% of $450,000, so $45,000. Same house, three very different bills. We haven’t checked how every edge case (trusts, corporations, several foreign owners) works in each province, so ask a real estate lawyer before you rely on the shares.
Can you get the tax back?
In Ontario, sometimes. If you gain permanent residence inside four years of buying, hold the property alone or only with your spouse, and live in it as your principal residence, you can apply for a rebate. The application must be made within 180 days of becoming a permanent resident. Miss that window and the money stays with the province. So plan for it early.
Ontario also has exemptions for provincial nominees, protected persons and some spouses of citizens or permanent residents. Nominees must have applied, or be about to apply, for permanent residence. The temporary rebates for international students and foreign workers closed for applications after 31 March 2025.
Nova Scotia moved in August 2026 to make life easier for people settling there. Its release says the rate stays at 10 per cent, the deadline to prove residency goes from six months to one year, and the refund window from one year to two. It doesn’t say when those changes start, so check the current forms. You can read it on the Nova Scotia government news release.
Mistakes that cost real money
The common one is assuming residency for tax and status for the tax are the same thing. They aren’t. Another is buying through a Canadian numbered company and thinking that solves it. If foreign entities control it, the rules look through it.
People also forget the ban has a date but the tax doesn’t. Ontario’s and BC’s taxes have no end date in the sources we read. And if you sell later at a profit, the capital gains tax calculator shows the ordinary Canadian side of it, but sales by non-residents carry extra rules we haven’t covered here.
One more thing we couldn’t confirm: whether the federal ban will be extended past 1 January 2027. The Act’s text and the February 2024 announcement point to that date, and we found no later official notice. If your closing sits near that date, read the Act again before you sign.
Where we got these figures
Ontario’s Ministry of Finance publishes the speculation tax rules, exemptions and rebates. The BC Ministry of Finance publishes the additional property transfer tax and the list of regional districts, last updated June 2025 when we read it. The federal ban comes from the Prohibition on the Purchase of Residential Property by Non-Canadians Act. Nova Scotia figures come from its provincial page and news release, read in October 2026. We aren’t a government service and we don’t speak for one.
Frequently asked questions
Is there a national foreign buyer tax in Canada?
No. Ontario, British Columbia and Nova Scotia charge their own taxes, and a separate federal ban on buying residential property is in force until 1 January 2027.
Does a Canadian citizen living abroad pay it?
In Ontario the test is citizenship or permanent residence, not where you live for tax. Someone with Canadian citizenship isn't a foreign national, so it doesn't apply.
Can the Ontario tax be refunded?
Sometimes. You can apply if you gain permanent residence within four years and meet the ownership and principal residence conditions, within 180 days of becoming a permanent resident.
Is the foreign buyer tax paid on top of land transfer tax?
Yes. You pay the regular land transfer tax as well, and both are due at closing.
Will the federal ban end in 2027?
The Act and the February 2024 announcement point to 1 January 2027. We found no official extension, so read the Act again before relying on that date.
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