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Ontario’s foreign buyer tax is officially the Non-Resident Speculation Tax, or NRST, and the rate is 25%. It’s charged on the full price of a home when any buyer counts as a foreign entity under the rules below. On a $900,000 purchase that’s $225,000, added to the normal land transfer tax bill.
Who pays the foreign buyer tax in Ontario?
Status decides it. Ontario counts as a foreign national anyone without Canadian citizenship or PR status. Companies incorporated abroad are in, and so are Canadian companies under foreign control. Some trusts are caught too, when the trustee or a beneficiary is foreign.
Here’s the part that surprises people. Let one buyer be foreign, and the tax hits 100% of the value whatever share that buyer owns. Two people buying half and half don’t pay on half. Ontario’s own example makes the point: a $1.5 million purchase where one buyer holds 34% still produces $375,000 of NRST, because the 25% applies to the whole price.
Ontario’s page says the tax covers the whole province, Toronto and everywhere else. The 25% rate has applied since October 25, 2022, according to the page, last updated in May 2026. Some older sources give March 2022 for the start, and we couldn’t confirm that date.
Effective October 25, 2022, the NRST rate is 25%.
Non-Resident Speculation Tax, ontario.ca
What kind of property does the tax cover?
| Property | Covered? |
|---|---|
| Detached house, townhouse, semi | Yes |
| Condo unit | Yes |
| Duplex up to sixplex | Yes |
| Standalone condo parking or storage unit (since March 27, 2024) | Yes |
| Mixed use building | Residential part only |
The rule is land with one to six single-family residences. Land with seven or more units isn’t in that description.
What does the tax cost on a real purchase?
Say a foreign national buys at $900,000. The non-resident buyer tax calculator gives $225,000 for the NRST. Outside Toronto, the land transfer tax calculator shows $14,475 of provincial land transfer tax at that price. Inside Toronto the figure is $28,950, because the city charges a tax of its own. A Toronto buyer therefore faces $253,950 in these two taxes, before legal fees.
A bill that size changes what you can afford. Someone who could manage $900,000 without the NRST needs a great deal more cash. Work out the total with the closing costs calculator before an offer goes in.
It also helps to see how the 25% scales. On a $600,000 condo the NRST is $150,000. On $1,200,000 it’s $300,000. Every extra $100,000 on the price adds $25,000 of tax, so negotiating the price down matters more than it would for an ordinary buyer.
Can you get the NRST refunded?
In some cases, yes. The Permanent Resident NRST Rebate is for buyers who get PR status inside four years of buying. The home has to be where you live full time, starting within 60 days after registration and lasting until you apply. The ministry then has 180 days from your PR date as the cutoff for receiving the application.
Ontario’s exemptions list is separate. Ontario Immigrant Nominee Program nominees can qualify, as can refugees and other protected persons, and the spouse of a citizen or PR holder (both spouses must be on the transfer). The transitional rebates for international students and foreign workers stopped taking applications after March 31, 2025.
Read the exemption conditions before you sign. Buyers have to certify occupancy inside that first 60 days, and slipping on it costs real money.
Does the federal ban on foreign buyers still apply?
It’s a separate rule, and it isn’t a tax. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act bars foreign commercial enterprises and people who aren’t citizens or permanent residents from buying residential property in Canada, with exceptions. A February 2024 release from the Department of Finance moved the end date to January 1, 2027. We found no later extension, but check before you plan around that date, since the Act’s own text is the final word.
So a purchase can face both: the federal ban if no exception applies, and the NRST if you’re allowed to buy. If you’re a resident buyer instead, the land transfer tax calculator for Toronto buyers is the tool you want.
What if you’re buying with a Canadian partner?
Being married to a citizen or PR holder can open an exemption, but only if the conditions are met and both spouses are on the transfer. If you’re buying with a friend or a sibling instead, the spousal exemption doesn’t cover that relationship, so the whole price is taxed if one buyer is foreign. Ask the lawyer handling the closing to confirm in writing which category applies before you sign.
How we checked the figures
The rate, the buyers covered, the property types and the calculation come from the Government of Ontario’s page on the Non-Resident Speculation Tax, and the rebate conditions from its rebates page, updated in November 2025. The federal ban dates are taken from the Department of Finance release of February 4, 2024. Land transfer figures are from our own calculators, which use the published Ontario and Toronto scales.
Frequently asked questions
What is the foreign buyer tax in Ontario called?
It is the Non-Resident Speculation Tax, or NRST. Ontario's page gives the rate as 25% since October 25, 2022.
Does it apply outside Toronto?
Yes. Ontario's page says it covers the whole province.
Is the tax charged only on the foreign buyer's share?
No. If any buyer is a foreign entity, it applies to the full value of the consideration, not a share.
Can I get the NRST back?
A rebate exists for buyers who get PR status within four years and make the home their main residence. Applications must reach the ministry within 180 days of the PR date.
Is there also a federal ban?
Yes. The federal ban on foreign buyers of residential property ends on January 1, 2027 under a 2024 extension, with exceptions. We found no later extension, so check the Act before relying on the date.
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