Ontario’s Non-Resident Speculation Tax (NRST) is a 25% tax on the purchase price of residential property in Ontario when the buyer is a foreign national, foreign corporation, or taxable trustee. The NRST is administered by the Ontario Ministry of Finance under the Land Transfer Tax Act and is charged in addition to Ontario’s Land Transfer Tax (LTT) and, in Toronto, the City of Toronto Land Transfer Tax (CTLTT).
The NRST was introduced in 2017 at 15%, raised to 20% in March 2022, and further raised to 25% effective October 25, 2022. It now applies province-wide across all of Ontario, not just the Greater Golden Horseshoe area as originally enacted.
Quick Answer
A foreign national purchasing a $900,000 residential property in Ontario pays: Ontario LTT ($13,475) + NRST ($225,000 = 25% x $900,000) = $238,475. If the property is in Toronto, the CTLTT ($12,725) is also due, bringing the total to $251,200.
NRST Rate and Scope
Rate: 25% of the purchase price of the residential property.
Geographic scope: province-wide Ontario (since March 30, 2022; previously only Greater Golden Horseshoe).
Property type: residential properties containing 1 to 6 single-family residences. Purely commercial or industrial properties are not subject to NRST.
Who Is Subject to the NRST
The NRST applies when the buyer is:
- A foreign national (not a Canadian citizen or permanent resident)
- A foreign corporation (not incorporated in Canada; or a Canadian corporation where foreigners hold the majority)
- A taxable trustee (a trustee where at least one trustee or beneficiary is a foreign national or foreign corporation)
The NRST is prorated when only a portion of the purchase is foreign-owned. If a Canadian citizen and a foreign national purchase property jointly, the NRST applies only to the foreign national’s proportionate share.
Ontario Land Transfer Tax Brackets
| Purchase price | LTT rate |
|---|---|
| First $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Ontario first-time home buyers receive a provincial LTT rebate of up to $4,000. Toronto first-time buyers receive an additional CTLTT rebate of up to $4,475. The NRST is not rebatable against the LTT; it is an additional obligation on top of LTT.
NRST Rebates
NRST paid may be refunded in full under specific circumstances:
- Permanent residency: A foreign national who becomes a Canadian permanent resident within four years of the purchase date can apply for a refund.
- International students: A foreign national enrolled full-time in an approved Ontario learning institution can apply for a refund within 90 days of purchase, provided they occupied the home as their principal residence.
- Work permit holders: Foreign nationals working full-time in Ontario under a work permit issued for a continuous period of at least one year, and occupying the property as their principal residence, can apply for a refund.
Refund applications must be submitted to the Ontario Ministry of Finance with supporting documentation. Tax paid at registration is not automatically refunded; the taxpayer must proactively file.
Worked Example
Foreign buyer purchases a $1,200,000 detached home in Mississauga. Foreign ownership: 100%.
- Ontario LTT: 0.5% x $55,000 = $275; 1.0% x $195,000 = $1,950; 1.5% x $150,000 = $2,250; 2.0% x $800,000 = $16,000; total LTT = $20,475
- NRST: $1,200,000 x 25% = $300,000
- Total at closing: $320,475
Comparison: Ontario NRST vs BC Foreign Buyers Tax
| Feature | Ontario NRST | BC APTT |
|---|---|---|
| Rate | 25% | 20% |
| Geographic scope | Province-wide | Five regional districts |
| PR rebate window | Four years | Two years |
| Introduced | 2017 (15%); raised to 25% in 2022 | 2016 (15%); raised to 20% in 2018 |
Edge Cases and Rules
- Residential property transferred as part of a mortgage enforcement (power of sale) or court order may be exempt from NRST.
- Transfers between spouses under a separation agreement may not trigger NRST if the property is already used as a principal residence.
- The NRST is calculated on the full purchase price, not on the value of the residential portion only. A mixed-use building with both residential and commercial space may face a complex apportionment analysis.
- Foreign nationals under the federal Non-Canadians Purchase Prohibition may not be able to purchase Ontario residential property at all (subject to exemptions), making NRST compliance a secondary consideration after confirming eligibility to purchase.
Frequently asked questions
- What is Ontario's NRST rate?
- Ontario's Non-Resident Speculation Tax (NRST) rate is 25% of the purchase price of qualifying residential property, effective October 25, 2022. It is in addition to the Ontario Land Transfer Tax and, in Toronto, the City of Toronto Land Transfer Tax.
- Does the NRST apply across all of Ontario?
- Yes. Since March 30, 2022, the NRST applies province-wide across all of Ontario. Prior to that date, it was limited to the Greater Golden Horseshoe region. The current 25% rate and province-wide scope have been in place since October 25, 2022.
- Who must pay the Ontario NRST?
- Foreign nationals (not Canadian citizens or permanent residents), foreign corporations, and taxable trustees (trusts with foreign beneficiaries or trustees) must pay NRST when purchasing residential property in Ontario. The tax is prorated to the foreign ownership percentage.
- Can I get a refund of the Ontario NRST?
- Yes, in specific situations. Foreign nationals who become permanent residents within four years of purchase, full-time international students at approved Ontario institutions, and foreign nationals working full-time in Ontario under a permit of at least one year can each apply for a full refund. Applications are submitted to the Ontario Ministry of Finance.
- How much is Ontario LTT on a $900,000 purchase?
- Ontario LTT on $900,000: 0.5% x $55,000 = $275; 1.0% x $195,000 = $1,950; 1.5% x $150,000 = $2,250; 2.0% x $500,000 = $10,000; total = $14,475. If the property is in Toronto, the CTLTT adds a similar amount.
- Is there an Ontario LTT first-time buyer rebate?
- Yes. Ontario first-time home buyers receive a provincial LTT rebate of up to $4,000. Toronto first-time buyers receive an additional CTLTT rebate of up to $4,475. Neither rebate applies to NRST; the NRST is an additional obligation not reduced by the first-time buyer rebates.
- How does Ontario's NRST compare to BC's APTT?
- Ontario's NRST is 25% and applies province-wide. BC's APTT is 20% and applies only in five specified regional districts (Metro Vancouver, Greater Victoria, Fraser Valley, Central Okanagan, Nanaimo). Ontario's PR rebate window is four years; BC's is two years.
- Does the NRST apply to commercial property?
- No. The NRST applies only to residential property containing one to six single-family residences. Pure commercial and industrial properties are not subject to NRST. Mixed-use properties require an apportionment of value between residential and non-residential components.
- What is the federal Foreign Buyer Ban and does it affect NRST?
- The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (in force since January 2023) restricts most non-Canadians from buying residential property in Canadian urban areas. It operates separately from NRST. A buyer who is exempt from the federal ban may still owe NRST. A buyer subject to the federal prohibition cannot purchase at all, making NRST irrelevant.
- Does NRST apply to a home bought jointly with a Canadian citizen?
- Yes, but only on the foreign national's proportionate share. If a Canadian citizen and a foreign national buy a $1,000,000 property with equal ownership (50/50), the NRST applies on 50% of the purchase price: $1,000,000 x 50% x 25% = $125,000.