Ontario Non-Resident Speculation Tax (NRST) in 2027: 25%, Refunds and Exemptions

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Who pays Ontario’s 25% NRST in 2027, what it costs on typical GTA homes, the exemptions, and the two rebates still open.

This guide is for foreign nationals, foreign companies and trustees planning to buy a home in Ontario in 2027, and for the Canadians buying alongside them. It sets out who pays Ontario’s Non-Resident Speculation Tax, what it costs on typical GTA homes, the three exemptions, the two rebates still open, and the newer rules that older articles miss.

What is the NRST in Ontario in 2027?

The Non-Resident Speculation Tax (NRST) is a 25% tax on the price of a home bought by a foreign national, a foreign corporation or a “taxable trustee”. It applies anywhere in Ontario and is charged on top of the regular Ontario land transfer tax. It is set under the Land Transfer Tax Act and paid when the purchase is registered.

The rate has risen in steps:

• 21 April 2017: introduced at 15%, only in the Greater Golden Horseshoe.
• 30 March 2022: raised to 20% and extended to the whole province.
• 25 October 2022: raised to 25%, the rate today.

As of 10 November 2026, the Ministry of Finance still lists 25% and has not announced a different rate for 2027. Rates can change with a provincial budget, so check the Ministry’s page in the week you sign. The tax is not tied to the federal foreign buyer ban, which is a separate law with its own end date.

Who pays the NRST?

Three kinds of buyers pay it:

• Foreign nationals: anyone who is not a Canadian citizen or permanent resident. People registered under the Indian Act are not foreign nationals. Work permit holders and international students are foreign nationals.
• Foreign corporations: companies incorporated outside Canada, and unlisted Canadian companies controlled by foreign entities, using the control test in the federal Income Tax Act. Ontario looks at real control, not just who holds the voting shares.
• Taxable trustees: trustees of a trust with a foreign trustee or a foreign beneficiary.

Two points catch people out. First, if you have applied for permanent residence but do not have it on closing day, you pay. Second, a permanent resident who lives abroad does not pay, because the test is status, not where you live. An expired PR card does not end PR status.

The NRST is not split by ownership share. If one of three buyers is a foreign national holding 34%, the tax is 25% of the full price, and every buyer on title is liable for it, including the Canadian ones.

Which properties does the NRST apply to?

The tax applies to “designated land”: land with at least one and not more than six single family residences. That includes:

• detached and semi-detached houses, townhouses and condo units;
• duplexes up to sixplexes;
• cottages and cabins, even if usable only part of the year;
• since 27 March 2024, parking and storage units in a condo bought on their own.

It does not apply to rental apartment buildings with more than six units, agricultural land, or commercial and industrial land. On a mixed property, such as a store with a house on the same lot, the tax applies only to the residential share of the price, and you must be able to prove the other part is used only for business.

How much is the NRST on a typical GTA home?

Here is what the 25% tax looks like on median 2026 sale prices across the GTA and Hamilton. Regular Ontario land transfer tax is shown so you can see the total provincial bill.

Source: prices are municipality or Toronto district medians from TRREB MLS data via REALM, January to October 2026; tax is my calculation using Ontario Ministry of Finance rates. Inside Toronto, add the 10% municipal speculation tax and Toronto land transfer tax.

The Toronto line is the one people underestimate. The City of Toronto adds its own 10% tax for foreign buyers, so the C01 condo above would carry $60,000 more, plus Toronto’s land transfer tax. See my full Toronto land transfer tax guide for the regular rates.

Who is exempt from the NRST?

There are three exemptions, and each has strict conditions:

• Nominee: you are nominated under the Ontario Immigrant Nominee Program on closing day and have applied, or certify you will apply, for permanent residence before your nomination certificate expires.
• Protected person: refugee protection has been conferred on you under section 95 of the Immigration and Refugee Protection Act.
• Spouse: you buy together with a spouse who is a Canadian citizen, permanent resident, nominee or protected person, and you are both named on title.

Every exemption also requires that all buyers certify they will live in the home as their principal residence within 60 days of registration. Telling the Canada Revenue Agency it is your principal residence is not enough; you have to actually live there. Any other co-owners must also be citizens, permanent residents, nominees, protected persons or their spouses, and an exemption is not available if a taxable trustee is on title.

Ontario’s definition of spouse is narrower than the federal one. It covers married couples, couples who have lived together for at least three years, and couples in a relationship of some permanence who are the parents of a child. Status counts on closing day. Getting married or becoming a nominee the week after closing does not earn a refund.

How does the permanent resident NRST rebate work?

If you paid the NRST and later become a permanent resident, Ontario can rebate the whole amount. You must:

1. become a permanent resident within four years of the purchase date;
2. own the home alone or only with your spouse;
3. live in it as your principal residence from within 60 days of registration until you apply or meet the conditions; and
4. get your application to the Ministry within 180 days of becoming a permanent resident.

The 180 days run from the day you became a permanent resident, not from the day your PR card arrives. Use your Confirmation of Permanent Residence. Ontario also asks for proof that you lived in the home, such as an updated driver’s licence or bank statements; it says utility bills, property tax bills and home insurance are not accepted as proof. The application can be filed online through the Ministry’s portal. Interest on a rebate starts 40 business days after the Ministry has a complete application.

The older student and foreign-worker rebates are closed. They only covered agreements signed on or before 29 March 2022, and the last day to apply was 31 March 2025.

What is the NRST industrial use rebate?

This is new, and most guides have not caught up. For purchases on or after 6 November 2025, Ontario offers an NRST rebate when a residential property is reclassified into the industrial, large industrial or aggregate extraction property class. The reclassification must happen within six years and take effect for a period starting no later than four years after the purchase, and you must apply within six years. If only part of the land is reclassified, the rebate is apportioned by assessed value. It suits foreign companies buying a house on land they plan to turn into an industrial site, not people buying a home to live in.

How much NRST does Ontario collect, and where?

The Ministry publishes what it collects by land registry office. The drop after 2022 lines up with the federal ban starting on 1 January 2023.

Source: Ontario Ministry of Finance, Non-Resident Speculation Tax Collected, 21 April 2017 to 31 December 2025 (gross amounts paid, before rebates and refunds).

Ontario cautions that these figures should not be used to estimate foreign buying, because some buyers were exempt or got transitional relief. What they do show is that the tax still brings in real money, and that most of it comes from Toronto and York Region.

Does the NRST change if the federal foreign buyer ban changes?

No. The federal ban decides whether you may buy; the NRST decides what you pay. Budget 2026, tabled on 5 November 2026, proposes extending the ban on existing homes to 1 January 2029 and exempting new homes, and says Ottawa will keep supporting measures by other governments that target speculation. Even if a foreign national can buy a new home under that proposal, the NRST would apply unless an Ontario exemption fits. I cover the federal side in what the foreign buyer ban catches, and the worker route in buying on a work permit.

What to do next

1. Confirm every buyer’s status on the expected closing day: citizen, permanent resident, nominee, protected person or foreign national.
2. Check whether the property is designated land and, for mixed-use property, how much of the price is residential.
3. Calculate 25% of the price, plus Toronto’s 10% if the home is in the city, and add it to the cash you need at closing.
4. If you are relying on an exemption, have your lawyer confirm the spouse or nominee conditions and the 60-day move-in rule in writing.
5. If you expect permanent residence within four years, diarize the 180-day rebate deadline from your PR date.

Frequently asked questions

Sources

• Ontario Ministry of Finance: Non-Resident Speculation Tax
• Ontario Ministry of Finance: Non-Resident Speculation Tax exemptions
• Ontario Ministry of Finance: Non-Resident Speculation Tax rebates and refunds
• Ontario Ministry of Finance: Non-Resident Speculation Tax collected (2017 to 2025)
• City of Toronto: Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax
• Budget 2026, Chapter 3: A more affordable life

Related reading

• Foreign Buyer Ban 2027: What Budget 2026 Changes (Extension to 2029, New Homes Exempt)
• Can Foreigners Buy New Construction Condos in Toronto in 2027?
• Foreign Buyer Ban Exemptions in Canada for 2027: Who Can Still Buy
• Can International Students Buy a Home in Ontario in 2027?