The Foreign Buyer Tax (NRST) in Ontario, Explained

If you're not a Canadian citizen or permanent resident, buying a home in Ontario involves two separate sets of rules: the provincial Non-Resident Speculation Tax (NRST) — often called the foreign buyer tax — and a separate federal ban on foreign purchases of certain homes. They're easy to confuse. This guide explains what each one is, who it affects, and where to confirm the current figures.

Key takeaways

• Ontario's NRST is a provincial tax on certain purchases by foreign nationals, foreign corporations and taxees.
• The NRST is separate from — and stacks on top of — the regular land transfer tax.
• A separate federal law bans many non-Canadians from buying certain residential property.
• Permanent residents and citizens are not subject to the NRST; some exemptions and rebates exist.
• Rates and rules change — always confirm the current figure on Ontario.ca before you buy.

What the NRST is

The Non-Resident Speculation Tax (NRST) is a provincial tax Ontario charges on the purchase of residential property by certain foreign buyers — broadly, foreign nationals, foreign corporations, and 'taxable trustees.' It was introduced to cool speculative demand and now applies across the whole province.

Crucially, the NRST is in addition to the regular Ontario land transfer tax that every buyer pays — and, in Toronto, the municipal land transfer tax on top of that. Read how the base tax works in Ontario land transfer tax and the Toronto municipal land transfer tax.

Confirm the current rate on Ontario.ca

The NRST rate and rules have changed more than once since the tax was introduced. We deliberately don't quote a rate here that could go stale — check the current percentage and the exact definitions on the official Government of Ontario page linked in the sources below.

Who it applies to

The NRST targets buyers who are not part of Canada's permanent population. Whether it applies turns on your status, not your intentions for the home.

Canadian citizens and permanent residents are not subject to the NRST. The precise definitions — including how it treats spouses, mixed-status purchases and certain visa holders — are detailed and matter a great deal, so verify your specific situation against the official guidance.

Exemptions and rebates

Ontario provides certain exemptions and rebates from the NRST in defined circumstances — for example, for some individuals who later become permanent residents within a set period, and for certain protected persons or international students and workers who meet the conditions in effect at the time.

Eligibility and deadlines are strict

Rebates and exemptions come with precise eligibility tests and filing deadlines. If you think you might qualify, confirm the current rules early and keep your documentation — missing a deadline can cost you the rebate.

The separate federal foreign-buyer ban

Don't confuse the provincial NRST with the federal rules. Canada also has a separate national law that prohibits many non-Canadians from purchasing certain residential properties altogether — a ban, not a tax. It has its own definitions, exceptions and time limits, distinct from Ontario's NRST.

• NRST — a provincial tax you may pay on a purchase that's still allowed.
• Federal ban — a national prohibition that can stop the purchase entirely.
• They're independent. You could be affected by one, both, or neither.
• Both have exceptions. Status, property type and location all matter.

Because both regimes carry significant consequences and change over time, anyone affected should get professional legal advice before making an offer.

Budgeting if the NRST applies

If you're a foreign buyer who is permitted to purchase and the NRST applies, budget for it as a large additional closing cost alongside your land transfer tax and the other items in closing costs in Ontario. Estimate the base costs with the closing cost calculator, then add the current NRST amount from Ontario.ca.

Offset your costs with cashback

Eligible HOMEH buyers receive the industry's highest Cashback Rebate, which can help offset the closing costs on an eligible purchase. Estimate yours with the cashback calculator.