Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →The Non-Resident Speculation Tax is 25% of the purchase price, has applied at that rate since 25 October 2022, and applies province-wide — not just in the Greater Golden Horseshoe, as it did when first introduced. It is charged on purchases by foreign nationals, foreign corporations and taxable trustees of land containing one to six residential units.
Exemptions exist for nominees under the Ontario Immigrant Nominee Program, protected persons, and the spouse of a Canadian citizen or permanent resident, each with principal residence conditions. A rebate is available where the purchaser becomes a permanent resident within four years and meets the occupancy and application deadlines.
The rate, and how it got here
| From | Rate | Where it applied |
|---|---|---|
| Original introduction | 15% | Greater Golden Horseshoe |
| 30 March 2022 | 20% | Province-wide |
| 25 October 2022 | 25% | Province-wide |
The current rate has now been in place for close to four years, and applies to the entire province rather than to the region around Toronto.
What it applies to
Designated land: land containing at least one and not more than six single-family residences. A detached house, a semi, a townhouse, a condominium unit and a duplex through to a six-unit building all fall within it.
Who pays it
- Foreign nationals — individuals who are neither Canadian citizens nor permanent residents
- Foreign corporations
- Taxable trustees — where a trustee is a foreign entity, or a beneficiary of the trust is a foreign entity
Note the third category. A trust structure does not sidestep the tax; it can trigger it.
The exemptions
- Ontario Immigrant Nominee Program nominees, where the purchaser has been nominated and has applied or certified an intention to apply for permanent residence
- Protected persons under the Immigration and Refugee Protection Act
- Spouses of Canadian citizens, permanent residents, nominees or protected persons, purchasing jointly
Each requires the purchaser to occupy the property as their principal residence.
The rebate
Available where all of the following are satisfied:
- The purchaser becomes a permanent resident of Canada within four years of the purchase date
- The purchaser holds the property alone or with a spouse only
- The purchaser occupies it as a principal residence within 60 days of the purchase
- The application is made within 90 days of becoming a permanent resident
How it stacks in Toronto
| On a $3,000,000 Toronto purchase by a non-exempt foreign national | Amount |
|---|---|
| Ontario land transfer tax | $61,475 |
| Toronto municipal land transfer tax | $61,475 |
| Ontario NRST at 25% | $750,000 |
| Toronto MNRST at 10% | $300,000 |
| Total on closing | $1,172,950 |
And separately from all of this, the federal prohibition on purchases of residential property by non-Canadians remains in force until 1 January 2027, subject to its own exemptions.
The practical takeaway
NRST is not a friction cost, it is a category-defining one. Establish status and exemption eligibility in writing before you look at properties, diarise every rebate deadline on closing day, and never let a trust or corporate structure be set up without tax advice — a taxable trustee is expressly within the charge.
Frequently asked questions
What is the current NRST rate in Ontario?
Twenty-five per cent of the purchase price, effective 25 October 2022. It was 20% from 30 March 2022 and 15% before that, and the original version applied only to the Greater Golden Horseshoe rather than the whole province.
Where does NRST apply?
Province-wide since 30 March 2022. It applies to designated land — land containing at least one and not more than six single-family residences.
Who has to pay it?
Foreign nationals, foreign corporations and taxable trustees. The definitions are technical and turn on status rather than on where a person happens to live, which is why legal advice is essential before signing.
What are the exemptions?
Nominees under the Ontario Immigrant Nominee Program, protected persons under the Immigration and Refugee Protection Act, and the spouse of a Canadian citizen, permanent resident, nominee or protected person purchasing jointly. Each requires the property to be occupied as a principal residence.
How does the rebate work?
Available where the purchaser becomes a permanent resident of Canada within four years of the purchase date, holds the property alone or with a spouse, occupies it as their principal residence within 60 days of purchase, and applies within 90 days of becoming a permanent resident. Confirm current conditions with the Ministry of Finance.
Does NRST apply on top of land transfer tax?
Yes. It is in addition to Ontario land transfer tax, and in the City of Toronto in addition to municipal land transfer tax and the Toronto Municipal Non-Resident Speculation Tax of 10% effective 1 January 2025.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
Related reading
- Can a foreign buyer purchase a luxury home in Toronto in 2026?
- Land transfer tax on a luxury home in Toronto: the full 2026 numbers
- Should you buy a luxury home in a corporation or trust in Ontario?
- Why your brokerage asks where the money came from
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
- Government of Ontario — Non-Resident Speculation Tax
- City of Toronto — Municipal Land Transfer Tax and MNRST rates
- Government of Canada — Prohibition on the Purchase of Residential Property by Non-Canadians Act
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.