Ontario Raises Foreign Homebuyer Tax

Ontario has raised its Non-Resident Speculation Tax (NRST) for foreign homebuyers from 15 to 20 percent, effective March 30th, 2022. The tax was previously applicable only to heavily populated areas in Southern Ontario but will now extend province-wide. The increase is part of the Ontario government's commitment to prioritizing affordable housing for Ontario homebuyers. The government plans to offer rebates to people and newcomers impacted by the new tax, and focus on relief eligibility granted only to those who plan to lay down roots and commit to Ontario long-term. The province will also work with municipalities to establish a Vacant Home Tax and prevent construction slowdowns to address concerns over the housing market. The government plans to create a working group comprised of municipal representatives to share best practices for attainable homeownership for Ontario families.