Purchase taxes
Non-Resident Speculation Tax, when it applies
By Bo Yu, Broker, Right at Home Realty, Brokerage · Verified/updated August 2026
The Non-Resident Speculation Tax (NRST) is an additional Ontario land transfer tax on residential property bought by foreign nationals, foreign corporations and taxable trustees. It is charged on top of the regular land transfer tax, not instead of it.
The rate has been 25% since October 25, 2022, and since March 2022 it applies everywhere in Ontario — including Ottawa — not just the Greater Golden Horseshoe.
If you are a Canadian citizen or permanent resident buying for yourself, this tax does not apply to you. It is on this list because it is the one closing cost that can change a purchase from workable to impossible, and because it catches people who assume a work permit or study permit is enough.
- Who charges it
- The Government of Ontario, collected at registration alongside land transfer tax.
- Who normally pays
- The purchasing foreign national, foreign corporation or taxable trustee.
- When it's paid
- On closing day, at registration.
- Cash or financed
- Cash. Lenders will not finance it.
- Typical range
- 25% of the purchase price when it applies; $0 for citizens and permanent residents
How it's calculated — and why it varies
NRST is 25% of the value of the consideration for the residential property — the purchase price in an arm's-length sale. It applies to land containing at least one and not more than six single-family residences.
Where a purchase includes any foreign national on title, the tax generally applies to the full value, not just that person's share.
- Rate: 25%, in force since October 25, 2022 (previously 20%, and 15% before that).
- Scope: anywhere in Ontario since March 30, 2022.
- It is in addition to the ordinary Ontario land transfer tax.
Exemptions, refunds and when it doesn't apply
- Canadian citizens and permanent residents are not subject to NRST.
- Exemptions exist for nominees under the Ontario Immigrant Nominee Program, protected persons (refugee status), and a foreign national buying with a spouse who is a citizen, permanent resident, nominee or protected person.
- A rebate is available to a foreign national who becomes a permanent resident within four years of the purchase, subject to occupancy and filing conditions.
- The federal ban on residential purchases by non-Canadians was a separate, time-limited law that expired at the end of 2024 — it is not the same thing as NRST.
- Because eligibility turns on immigration status on the closing date, confirm your position with your lawyer well before you waive conditions.
A real Ottawa example
A foreign national on a work permit buying a $650,000 home in Kanata pays $9,475 in ordinary land transfer tax plus $162,500 in NRST — $171,975 in tax at closing.
If that same buyer's spouse is a Canadian permanent resident and they buy together, the spousal exemption can apply and the NRST portion drops to zero. The difference is entirely a question of status and documentation, which is why it is a lawyer conversation, not a calculator one.
How this shows up in the calculator
The calculator does not add NRST, because it applies to a small minority of buyers and depends on immigration status rather than on the property. If NRST applies to you, add 25% of the purchase price to the cash-to-close figure the calculator gives you and get written confirmation from your lawyer.
Open the calculatorCommon questions
- Does NRST apply in Ottawa?
- Yes. Since March 30, 2022 it applies province-wide, including Ottawa and eastern Ontario.
- I'm on a study permit. Am I exempt?
- Not automatically. The student and foreign-worker exemptions were eliminated in March 2022; only limited rebates and exemptions remain. Confirm with your lawyer before you make an offer.
Official sources — verified/updated August 2026
Rules and rates change. These are the first-party pages this one was checked against; confirm anything that matters to your purchase directly with them.
Every figure on this page is a planning estimate for general information only, based on the assumptions shown, and are not legal, tax, mortgage or financial advice or an offer of credit. Actual rates, payments, taxes, fees and values vary — confirm the numbers with your lender, lawyer or accountant before relying on them. Full disclosures.
This page is general information about how a cost works in Ontario, not legal, tax, mortgage or accounting advice, and not a quote. Your lawyer, lender and accountant confirm what actually applies to your purchase.
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