Non-Resident Speculation Tax
The Non-Resident Speculation Tax (NRST) is an Ontario tax on foreign buyers of residential properties to curb speculation and support affordability.
September 30, 2025
What is the Non-Resident Speculation Tax?
The Non-Resident Speculation Tax (NRST) is a provincial tax in Ontario applied to the purchase of residential properties by foreign buyers. Initially introduced in the Greater Golden Horseshoe region, it has since been expanded province-wide. The NRST is an additional percentage of the purchase price, charged on top of land transfer taxes.
Why the Non-Resident Speculation Tax Matters in Real Estate
The NRST matters in real estate because it is designed to curb foreign speculation and stabilize housing markets by discouraging non-resident ownership. It raises government revenue while aiming to improve affordability for local buyers.
Example of the Non-Resident Speculation Tax in Action
A non-resident investor purchases a $1,000,000 home in Toronto. They must pay the standard land transfer tax plus the NRST at the applicable rate, adding tens of thousands to closing costs.
Key Takeaways
- Applies to foreign buyers of Ontario residential property.
- Charged as a percentage of the purchase price.
- Aims to reduce speculation and increase affordability.
- Introduced in GGH region, expanded province-wide.
- Significant additional cost for non-resident buyers.
Related Terms
- Underused Housing Tax
- Speculation and Vacancy Tax
- Vacant Home Tax
- Land Transfer Tax
- Housing Affordability
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