Ontario's Non-Resident Speculation Tax: who pays it, exemptions, refund eligibility, and a free calculator.
Ontario's Non-Resident Speculation Tax (NRST) imposes a 25% tax on the purchase price of residential properties acquired by foreign nationals and foreign corporations. Expanded provincewide in 2022 and increased to 25% (from 20%), it applies to virtually all residential property in Ontario. However, several exemptions exist that can eliminate or reduce the tax.
The NRST applies to any transfer of residential property where the buyer is:
The tax is calculated at 25% of the full purchase price — not just the "foreign portion." If two buyers purchase together and one is a foreign national, the full 25% NRST applies to the entire purchase price.
Canadian permanent residents are fully exempt from the NRST. If you hold a valid PR card or have been approved for PR (and can prove it), the tax does not apply.
A person who has been granted refugee protection or is a Convention refugee under the Immigration and Refugee Protection Act is exempt.
Foreign nationals who have been nominated under a Provincial Nominee Program and applied for permanent residence are exempt.
Even if you must pay the NRST at closing, you may be eligible for a full or partial rebate if you meet certain conditions after purchase:
International students enrolled full-time in an approved Ontario institution for at least 2 years after purchase, purchasing as their primary residence, may claim a full NRST rebate. The student must be in Canada on a valid study permit.
Foreign workers who have been employed in Ontario full-time for at least one year under a valid work permit, living in the home as their principal residence, may claim a full NRST rebate.
Foreign nationals who paid NRST and later become permanent residents within 4 years of the purchase can apply for a full refund.
Note: Canada implemented a federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (the "Foreign Buyer Ban") which prohibits most non-Canadian citizens and non-PR from purchasing residential real estate. This federal ban has exemptions (e.g., international students meeting certain criteria, work permit holders, diplomatic posts). The federal ban and Ontario's NRST are separate — even if you're exempt from the federal ban, you may still owe NRST. Consult a lawyer before proceeding.
| Buyer Type | NRST Applies? | Rebate Available? |
|---|---|---|
| Canadian citizen | No | N/A |
| Permanent Resident | No | N/A |
| Work permit holder (1+ yr Ontario work) | Yes (pay upfront) | Yes (full refund) |
| International student (2+ yr enrolled) | Yes (pay upfront) | Yes (full refund) |
| Foreign national (no qualifying status) | Yes | No |
| Foreign corporation | Yes | No (generally) |
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