Updated Checked by the Tax-Services.ca editorial team How we check
The Ontario non-resident speculation tax (NRST) takes a quarter of the price. Foreign buyers of a $900,000 home owe $225,000, and that sits above the normal land transfer tax. The Ontario government’s page says it covers the whole province from 25 October 2022.
Effective October 25, 2022, the NRST rate is 25%.
Non-Resident Speculation Tax, Government of Ontario, ontario.ca
Who has to pay the non-resident speculation tax?
Foreign entities and taxable trustees. That means people who hold neither citizenship nor permanent residence, foreign corporations, and trusts with a foreign trustee or beneficiary. Registered First Nations people under the Indian Act aren’t counted as foreign.
Here’s what surprises people. One foreign name on the deed pulls in the whole price, whatever that person’s share. Say Sam buys a $750,000 condo with a friend who lives abroad and isn’t a permanent resident. Even at 50/50, the tax covers the full price: $187,500, not half of it.
Which properties are covered?
Land holding one to six single-family homes, from a detached house or townhouse to a condo or a sixplex. Since 27 March 2024, standalone condo parking and storage units are included too. Farmland, commercial and industrial property, and rental buildings with seven or more units aren’t. If a property is mixed use, only the residential part is taxed.
It also isn’t a Toronto thing. The rule covers residential property anywhere in Ontario, so a cottage near Kenora is caught the same as a semi in Scarborough.
What does 25% cost on real prices?
We ran a few prices through our non-resident buyer tax calculator. One flat rate, so the sums are quick and the numbers get big fast.
| Price | NRST at 25% |
|---|---|
| $500,000 | $125,000 |
| $750,000 | $187,500 |
| $900,000 | $225,000 |
| $1,200,000 | $300,000 |
The $900,000 row matches what the tool shows. The NRST doesn’t replace anything. In Toronto that $900,000 home also carries $28,950 of ordinary land transfer tax, provincial and municipal, per our land transfer tax calculator. Both are due, so the tax bill on that one house is $253,950, a ballpark that leaves out legal fees.
Can you get an exemption or a refund?
A few buyers are exempt. They include nominees of the Ontario Immigrant Nominee Program, refugees with protected status, and spouses of Canadians, permanent residents, nominees or protected persons, provided both spouses take title. Anyone claiming an exemption for a home has to certify that they’ll live in it, and that comes with a 60 day clock after registration.
One more route back: a rebate for buyers who later gain permanent residence. The Ontario page says it may apply if you become a permanent resident within four years of the date the transfer is registered. The other conditions: title held alone or only with a spouse, the home lived in as your main residence, and an application filed inside 180 days of getting PR. If you qualify, the tax is refunded. But that’s a long wait with $225,000 tied up, so plan the cash.
The older rebates for international students and foreign workers have ended. Their application deadline was 31 March 2025. A new industrial use rebate applies to transfers on or after 6 November 2025.
What mistakes should you avoid?
Don’t assume a corporation is safe. A Canadian corporation controlled by foreign entities counts as one. Don’t assume a small ownership share means a small tax, for the reason above. And don’t forget the federal ban on foreign buyers, which is a different rule: our data shows it in force until 1 January 2027, with exceptions, and we couldn’t find an official page that extends it. Check the Department of Finance page before you rely on the date. Buying in another province? British Columbia has its own 20% tax in five regional districts, and Nova Scotia charges 10%. Use the property transfer tax calculator for BC.
What should you check before making an offer?
Ask one question first: does any buyer on the deed count as a foreign entity? Everything else follows from the answer. If the answer is yes or maybe, find out whether an exemption fits before you sign, not after. Have your lawyer confirm the status of every name going on title, because the tax is calculated on the registered transfer and the bill arrives at closing.
Sources, and how we checked them
Rate, definitions, exemptions and rebates come from the Government of Ontario’s pages on the non-resident speculation tax, its exemptions, and its rebates and refunds, as read in 2026. Toronto figures come from our own engine. This site has no link with the Government of Ontario.
Frequently asked questions
What is the NRST rate in Ontario?
A quarter of the price, on any covered home in the province, in force since 25 October 2022.
Does the tax apply if only one buyer is foreign?
Yes. The tax applies to the full value of the property, not to that buyer's share.
Can I get the money back?
Possibly. Gain permanent residence within four years, meet the occupancy rules, and file for the rebate within 180 days.
Does it apply to a condo?
Yes. Condos are covered, and since 27 March 2024 standalone condo parking and storage units are too.
Is this the same as the federal foreign buyer ban?
No. The ban is a federal rule about buying at all. The NRST is a provincial tax on those who do buy.
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