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Summary: The Non-Resident Speculation Tax (NRST) is a 25% tax that foreign buyers pay on Ontario residential property, in addition to regular land transfer tax. It has applied province-wide at 25% since October 25, 2022, and a full rebate is available if the buyer becomes a permanent resident within four years.
If you are buying a home in Ontario and you are not a Canadian citizen or permanent resident, this is the tax that can change your budget the most. It is a quarter of the purchase price, it is due on closing day, and whether you owe it, or can get it back later, comes down to your status and how the purchase is structured. Here is how it works.
What is the Non-Resident Speculation Tax?
The NRST is a provincial tax of 25% of a home's value, charged when a foreign national, foreign corporation, or taxable trustee buys residential property in Ontario. It is separate from, and paid on top of, Ontario's regular land transfer tax.
Ontario introduced the NRST in 2017 at 15% in the Greater Golden Horseshoe, raised it to 20%, and as of October 25, 2022 set it at 25% and expanded it across the entire province. It is administered under the Land Transfer Tax Act and collected when the transfer is registered on title. Here is how it compares with the land transfer tax every buyer pays:
Non-Resident Speculation Tax | Ontario land transfer tax | |
Who pays | Foreign nationals, foreign corporations, taxable trustees | Every buyer |
Rate | 25% of the purchase price | Sliding scale, roughly 0.5% to 2.5% |
Where it applies | All of Ontario | All of Ontario |
When it's paid | At registration, on closing | At registration, on closing |
Rebate | Full rebate if you become a permanent resident within four years | First-time buyer rebate only |
Who has to pay it?
The NRST applies to a buyer who is not a Canadian citizen or permanent resident. That covers three groups:
Foreign nationals. An individual who is not a Canadian citizen or permanent resident.
Foreign corporations. A corporation incorporated outside Canada, or one controlled by foreign nationals or other foreign corporations.
Taxable trustees. A trustee who is a foreign national, or who holds the property for a foreign beneficiary.
Some buyers are exempt. Under the province's rules, the tax generally does not apply to a nominee under the Ontario Immigrant Nominee Program, a protected person (refugee status), or a foreign national who buys with a spouse who is a Canadian citizen, permanent resident, nominee, or protected person. Because eligibility turns on precise definitions, confirm your situation with your lawyer and against the Ontario government's NRST page before closing. One trap to know: if a foreign buyer takes title jointly with anyone, the 25% generally applies to the whole property, not just their share.
What property does it apply to?
The NRST applies to "designated land," meaning residential property with at least one and no more than six single-family residences. That includes detached and semi-detached houses, townhouses, and individual condominium units. Since October 25, 2022 it applies everywhere in Ontario, not just the Greater Golden Horseshoe. Larger multi-residential buildings, commercial property, and farmland fall outside it, though mixed-use purchases need a closer look.
How much will you pay, and when?
You pay 25% of the value of the consideration, which is almost always the purchase price, and it is due at registration on closing day alongside your other land transfer taxes. On a $900,000 home, that is $225,000 in NRST, plus about $14,475 in provincial land transfer tax, plus Toronto's municipal land transfer tax again on top if the home is in the city. It is a large number to plan for well before closing. The mechanics at closing are straightforward:
Declare your status. You confirm your citizenship or residency, and your lawyer files the required NRST declaration with the transfer.
Your lawyer calculates and collects it. The NRST is calculated on the purchase price and collected with the rest of your closing funds.
It is paid at registration. The tax is remitted through Ontario's electronic land registration system at the moment title transfers to you.
Apply for a rebate afterward, if you qualify. The refund is claimed later, not netted out at closing.
Can you get the NRST back?
Yes, through a rebate, but only in specific situations. The main one rewards buyers who put down roots:
Permanent resident rebate. You can apply for a full refund of the 25% if you become a permanent resident of Canada within four years of the date the purchase was registered, and the home has been your principal residence.
Industrial-use rebate. A newer rebate may apply where a residential property is repurposed for industrial use, for transfers registered on or after November 6, 2025.
Rebates that no longer exist. The former international student and foreign worker rebates were eliminated as of March 31, 2025, and applications after that date are not accepted.
Rebates are applied for through the Ministry of Finance and come with documentation requirements and firm deadlines, so it is worth mapping out your eligibility before you buy, not after.
Frequently asked questions
How much is the Non-Resident Speculation Tax in Ontario?
It is 25% of the purchase price. That rate has applied across all of Ontario since October 25, 2022. It is charged in addition to provincial land transfer tax and, in Toronto, the municipal land transfer tax.
Do permanent residents pay the NRST?
No. The tax applies only to foreign nationals, foreign corporations, and taxable trustees. Canadian citizens and permanent residents do not pay it.
Can I get the NRST refunded?
Yes, if you become a permanent resident within four years of registering the purchase and the property was your principal residence. You apply for the rebate through the Ministry of Finance, with supporting documents.
Does the NRST apply if I buy with a spouse who is a citizen?
Often it does not. A foreign national buying with a spouse who is a Canadian citizen, permanent resident, nominee, or protected person is generally exempt. Because the rules are specific, confirm your situation with your lawyer before closing.
Does the NRST apply to commercial property or farmland?
No. It applies only to designated residential land with one to six single-family residences. Commercial property, farmland, and larger multi-residential buildings are outside it.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
At Ownright, we make Ontario real estate closings simple, transparent, and fully supported, pairing a digital platform with licensed Ontario lawyers who handle purchases, sales, and refinances, including closings where the Non-Resident Speculation Tax applies. You can start your closing online or get in touch with any questions.
Legal references: Land Transfer Tax Act, R.S.O. 1990, c. L.6, and O. Reg. 182/17 (Non-Resident Speculation Tax).
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
