# What is the Non-Resident Speculation Tax (NRST) impact?

> The Non-Resident Speculation Tax (NRST) is a 25% tax applied to the purchase of residential property in Ontario by individuals who are not Canadian citizens or permanent residents. It is charged upfront at closing and certain exemptions may apply.

Category: Regulatory
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/regulatory/what-is-the-non-resident-speculation-tax-nrst-impact

## Answer
| Region    | Tax Name               | Rate                | Applicability                              |
|-----------|------------------------|---------------------|--------------------------------------------|
| Ontario   | Non-Resident Speculation Tax (NRST) | 25%                | Province-wide, applied upfront at closing. Exemptions may apply for certain international students, foreign workers, and refugees. |
| BC        | Speculation Tax        | 0.5% to 2%          | Specific regions (Greater Vancouver, Victoria, and others); rate depends on residency status and property type. |

The NRST is intended to deter non-resident investors from purchasing residential real estate in Ontario. Exemptions and rebates are available for certain buyers, such as international students, foreign workers, and refugees who meet specific criteria. The BC Speculation Tax is separate and applies at a lower rate, depending on the owner's residency and property use.

## Related guide
- https://ratellow.com/guides/non-resident-expat-mortgage

## Sources
- B-20 Foreign Income Verification — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.1
- Foreign Buyer Ban Exceptions — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html#toc3