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What foreign buyer taxes apply in Ontario, and what do they cost?
Answered by Rajiv Verma, Mortgage Broker · Position as at August 2026 · About a 5 minute read
⏱ Rates change. Figures stated as at August 2026. Confirm the current rates and your own eligibility with a real estate lawyer before signing anything — getting this wrong creates a five- or six-figure shortfall at closing.
The direct answer
Ontario’s Non-Resident Speculation Tax is 25% of the purchase price, province-wide. In Toronto, a Municipal NRST of 10% applies on top — 35% combined, before ordinary land transfer taxes are even calculated. On a $900,000 Toronto condominium that’s roughly $343,950 in transfer and speculation taxes. These are separate from the federal ban and are not scheduled to disappear with it.
THE SHORT VERSION
- Ontario NRST — 25% of purchase price, province-wide
- Toronto MNRST — 10% more, effective 1 January 2025
- 35% combined in Toronto, plus both land transfer taxes
- Rebates exist in defined situations — check eligibility with a lawyer
- Don’t assume the taxes can be financed into the mortgage
The worked example that makes it real
A foreign buyer purchasing a $900,000 condominium in Toronto, assuming the federal prohibition has expired, current rates unchanged, and no exemption or rebate available:
| Cost | Estimated amount |
|---|---|
| Purchase price | $900,000 |
| Ontario NRST at 25% | $225,000 |
| Toronto MNRST at 10% | $90,000 |
| Ontario land transfer tax | $14,475 |
| Toronto municipal land transfer tax | $14,475 |
| Total transfer and speculation taxes | $343,950 |
Purchase price plus these taxes comes to roughly $1,243,950 — and that is before the down payment, legal fees, title insurance, appraisal, lender or broker fees, adjustments and moving costs.
The same $900,000 purchase in Calgary would carry none of these. Alberta has no Ontario-style foreign buyer speculation tax and no comparable provincial land transfer tax. That is not a small difference — it can change the investment decision entirely.
Illustrative only, based on rates as at August 2026. Your own position must be confirmed by a lawyer.
The two Ontario taxes, separately
Ontario Non-Resident Speculation Tax — 25%. Applies province-wide to applicable residential transactions, payable in addition to regular Ontario land transfer tax.
Toronto Municipal Non-Resident Speculation Tax — 10%. Effective 1 January 2025, applying on top of the Ontario NRST, Ontario land transfer tax and Toronto’s municipal land transfer tax.
Rebates — worth checking properly
Ontario may provide a rebate in defined situations, including where an eligible buyer becomes a permanent resident within the required period and satisfies all programme conditions.
Rebate eligibility is not something to assume. It should be reviewed with a qualified real estate lawyer or tax professional before you plan around it — the amounts involved are large enough that a wrong assumption is a serious problem.
Two things buyers get badly wrong
1. Assuming the taxes can go into the mortgage. Don’t. You may need to provide these amounts from your own verified funds, on top of the down payment and other closing costs. Plan the cash, not the financing.
2. Getting the residency or exemption analysis wrong. Your lawyer must determine whether the tax applies and collect it before registration. An error here produces a five- or six-figure shortfall at closing — discovered at the worst possible moment, once the deposit is committed and the deal is firm.
How other provinces compare
- British Columbia — Additional Property Transfer Tax of 20% on the foreign buyer’s proportionate share in designated regions including Metro Vancouver, the Capital Regional District, Fraser Valley, Central Okanagan and Nanaimo. BC also has an annual Speculation and Vacancy Tax.
- Alberta — no Ontario-style foreign buyer speculation tax, and no comparable provincial land transfer tax. Different rules can apply to certain rural controlled land.
On the Underused Housing Tax
The federal Underused Housing Tax filing and payment requirement has been eliminated for 2025 and later calendar years. However, obligations, penalties or interest relating to earlier years may still need to be addressed — a non-resident owner with outstanding prior-year filings should get proper tax advice rather than assuming the matter is closed.
What to check before you make an offer
- Whether the NRST applies to you at all — confirmed by a lawyer, not assumed
- Whether the property is inside Toronto, which adds the municipal 10%
- Whether any rebate is realistically available to you
- The complete cash requirement — taxes, down payment, closing costs, and what’s left afterwards
- Whether the same purchase in another province changes the arithmetic enough to reconsider
What to do next
Get the tax number from a lawyer before you shop for a mortgage. Then send me the picture and I’ll tell you what’s financeable and what cash you actually need to complete safely.
The order matters. Taxes first, financing second, offer last — not the other way round.
Related questions
- Canada’s foreign buyer ban ends 1 January 2027. What actually changes?
- I’m a non-resident selling Canadian property. What’s the CRA holdback?
- Can I use my savings from overseas for the down payment?
Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116
This page provides general educational information only and is not legal, accounting or tax advice. Tax rates, rebates and eligibility rules change. Figures stated as at August 2026 and illustrative only. Confirm your own position with a qualified real estate lawyer or tax professional before acting.