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Get My Free Estimate →Ontario’s Non-Resident Speculation Tax is 25 per cent, province-wide, since 25 October 2022, and Toronto adds its own 10 per cent municipal version from 1 January 2025 — 35 per cent combined. A permanent resident is not subject to it at all. Work permit holders and international students are subject; there is no exemption for either. The three exemptions are nominee, protected person and spouse, and all require occupancy as principal residence within 60 days of registration. The only surviving rebate is for those who become a permanent resident within four years, applied for within 180 days of that. The transitional student and worker rebates closed on 31 March 2025.
Twenty-five per cent from Ontario, ten per cent from Toronto. Thirty-five per cent on a qualifying purchase, before either land transfer tax. It is the largest single number in Ontario real estate and it turns entirely on immigration status. This page sets out who pays, who does not, and what can be recovered.
The two taxes
| Tax | Rate | Applies to | Effective |
|---|---|---|---|
| Ontario Non-Resident Speculation Tax | 25% | The purchase or acquisition of an interest in residential property anywhere in Ontario | 25 October 2022 |
| Toronto Municipal Non-Resident Speculation Tax | 10% | Certain residential purchases by foreign buyers within the City of Toronto | 1 January 2025 |
They stack. A qualifying purchase in Toronto by a foreign national carries a combined 35 per cent speculation tax exposure, on top of the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. The municipal one is missed constantly, including by people who should know better.
The Ontario tax was once limited to the Greater Golden Horseshoe. Since 25 October 2022 it applies province-wide.
Who is a foreign national
An individual who is not a Canadian citizen and not a permanent resident of Canada, excluding registered Indians under the Indian Act. That is the whole test for an individual, and it produces these results:
| Status | Ontario NRST |
|---|---|
| Canadian citizen | Not subject. |
| Permanent resident | Not subject. A permanent resident buying alone, or exclusively with citizens or other permanent residents, is outside the tax entirely — no exemption or rebate is needed. |
| Work permit holder | Subject. There is no work permit exemption. |
| International student | Subject. There is no student exemption. |
| Visitor or other temporary status | Subject. |
Foreign corporations and taxable trustees are also caught, with their own definitions.
The three exemptions
All three are narrow, and all three carry the same additional conditions.
| Exemption | Who qualifies |
|---|---|
| Nominee | Nominated under the Ontario Immigrant Nominee Program at the time of the purchase, who has applied or will apply for permanent residence before the certificate expires. |
| Protected person | A person with confirmed refugee protection under the Immigration and Refugee Protection Act. |
| Spouse | A foreign national purchasing with a spouse who is a Canadian citizen, permanent resident, nominee or protected person, with both named as transferees. |
In every case the property must be held only with citizens, permanent residents, nominees or protected persons, and all transferees must certify that they will occupy the property as their principal residence within 60 days of registration. Ontario is explicit that a principal residence designation for CRA purposes is not sufficient — actual occupancy is required.
The one rebate that survives
The permanent resident rebate. Its conditions:
- Become a permanent resident of Canada within four years of the date of purchase;
- Hold the property alone, or with a spouse only;
- Occupy it, with the spouse if applicable, as principal residence beginning within 60 days of registration;
- Apply within 180 days of becoming a permanent resident.
The student and worker rebates are gone. The transitional international student rebate and the transitional foreign-national-working-in-Ontario rebate both closed. Ontario states: “The application deadline of March 31, 2025, has now passed. As a result, applications for these transitional rebates are no longer being accepted.” Any page telling a student or a work permit holder they can claim the NRST back on those grounds is giving advice that expired over a year ago.
So for most temporary residents there is exactly one route to recovering the tax: become a permanent resident within four years and apply within 180 days of that happening. The 180-day window is short and it is easy to miss while you are dealing with everything else that comes with permanent residence.
The other thing to check first
The NRST is a tax on a purchase you are permitted to make. Whether you are permitted to make it at all is a separate federal question, and the Prohibition on the Purchase of Residential Property by Non-Canadians Act remains in force until 1 January 2027. Work permit holders and students face conditions there too, and they are different from the NRST conditions. Both need answering, and in that order — see the page on buying without a Canadian credit history, which covers the ban in detail.
Where to get this decided
Status questions have definite answers and getting them wrong is expensive in both directions — paying a tax you did not owe, or not paying one you did. A real estate lawyer and, where status is genuinely complex, an immigration lawyer, should confirm the position before an offer is firm rather than before closing. This is not a question to resolve on the strength of a blog post, including this one.
Not sure whether the tax applies to you?
It turns entirely on status, and the answer is definite rather than a matter of judgement — which means it is worth settling before you write an offer, not before you close. Tell me your situation and I will tell you what I can see and exactly which question needs a lawyer.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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That happens constantly in condos — one has the parking, the right exposure, or a board that keeps the reserve fund healthy. A model can’t see your status certificate. I can.
Frequently asked questions
Do permanent residents pay the Non-Resident Speculation Tax?
No. A permanent resident of Canada is not a foreign national for NRST purposes. Ontario states that a person buying alone or exclusively with citizens or permanent residents is not subject to the tax. No exemption or rebate application is needed.
Do work permit holders pay the NRST?
Yes. A work permit holder is a foreign national and there is no work permit exemption. The transitional rebate for foreign nationals working in Ontario closed on 31 March 2025. The only route to recovery is the permanent resident rebate.
Can international students get the NRST back?
Not any more. The transitional international student rebate closed on 31 March 2025 and Ontario is no longer accepting applications for it. A student who later becomes a permanent resident within four years of the purchase may qualify for the permanent resident rebate.
What is the NRST rate?
Twenty-five per cent, effective 25 October 2022, applying to residential property anywhere in Ontario. Toronto separately levies a 10 per cent Municipal Non-Resident Speculation Tax effective 1 January 2025, so the combined exposure in Toronto is 35 per cent.
What are the exemptions?
Three: nominee under the Ontario Immigrant Nominee Program, protected person under the Immigration and Refugee Protection Act, and spouse of a Canadian citizen, permanent resident, nominee or protected person. All require that the property be held only with citizens, permanent residents, nominees or protected persons, and that all transferees certify they will occupy it as their principal residence within 60 days of registration.
How long do I have to apply for the permanent resident rebate?
You must become a permanent resident within four years of the date of purchase, and apply within 180 days of becoming a permanent resident. The 180-day window is short and easy to miss.
Is there still a ban on foreign buyers?
Yes. The Prohibition on the Purchase of Residential Property by Non-Canadians Act is in force until 1 January 2027, following an amendment in the Budget Implementation Act, 2024. It is a separate question from the NRST and needs its own answer.
Related reading
- Buying with no Canadian credit history: rules versus lender practice
- Toronto land transfer tax: the bracket table from 1 April 2026
- Toronto Vacant Home Tax: the buyer can be left holding it
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Non-Resident Speculation Tax. Ontario Ministry of Finance. Rate of 25 per cent effective 25 October 2022, applying province-wide. Accessed 30 August 2026.
- Non-Resident Speculation Tax exemptions. Ontario Ministry of Finance. The nominee, protected person and spouse exemptions, and the 60-day occupancy certification. Accessed 30 August 2026.
- Non-Resident Speculation Tax rebates and refunds. Ontario Ministry of Finance. Only the permanent resident rebate remains; the transitional student and worker rebates closed on 31 March 2025. Accessed 30 August 2026.
- Municipal Land Transfer Tax rates and fees. City of Toronto. Page headed “Rates as of April 1, 2026”. Accessed 30 August 2026.
- Prohibition on the Purchase of Residential Property by Non-Canadians Act, S.C. 2022, c. 10, s. 235. Justice Laws Website. Consolidation current to 21 June 2026; the repeal provision remains under “Amendments Not In Force”. Accessed 30 August 2026.
- Budget Implementation Act, 2024, Part 4, Division 1, s. 149. Justice Laws Website. Replaces the sunset in the Budget Implementation Act, 2022, No. 1 with the fourth anniversary of 1 January 2023 — that is, 1 January 2027. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 437-987-1925.