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🇨🇦 Ontario 25% NRST • BC 20% Additional Property Transfer Tax

Ontario NRST & BC Additional Property Transfer Tax Guide 2026

Compare Ontario's 25% Non-Resident Speculation Tax with British Columbia's 20% Additional Property Transfer Tax: who pays, what property is covered, how co-ownership works, which exemptions apply, and when PR or citizenship refunds may be available.

1. Ontario NRST and BC Additional Property Transfer Tax Are Different Taxes

Ontario and British Columbia both impose additional transfer taxes on certain foreign buyers, but their legal structures are different. Ontario calls its tax the Non-Resident Speculation Tax (NRST) and applies it province-wide at 25% to qualifying residential land acquired by a foreign entity or taxable trustee. British Columbia calls its charge the Additional Property Transfer Tax and applies 20% in specified B.C. regions, generally on the foreign purchaser's proportionate share of the residential property's fair market value.

2. Ontario NRST: 25% Province-Wide Rule

Ontario's NRST applies to the purchase or acquisition of an interest in qualifying residential property located anywhere in Ontario by a foreign national, foreign corporation or taxable trustee. The current 25% rate took effect October 25, 2022. The NRST is in addition to the general Ontario Land Transfer Tax. The tax is based on the applicable value of consideration rather than a simplified universal statement that it is always 25% of a property's advertised purchase price.

Key Framework Highlights:

The current Ontario NRST rate is 25%.
The tax applies province-wide.
The NRST is separate from ordinary Ontario Land Transfer Tax.
If a qualifying residential conveyance has a foreign transferee, the NRST can apply to the full value of the consideration rather than merely the foreign person's percentage interest.
The tax is generally payable at registration through the land-transfer-tax registration process.
If an exemption is not properly established at registration, the foreign purchaser may need to pay the tax and later seek an available rebate or refund.

3. What Ontario Property Is Subject to NRST

Ontario's NRST applies to designated land. The current definition generally covers land containing at least one and not more than six single-family residences. This includes detached homes, semi-detached homes, townhouses, residential condominium units, cottages, cabins and similar residential structures. Since March 27, 2024, certain separately conveyed condominium parking and storage units are also designated land.

Property	General Ontario NRST treatment
Detached single-family residence	Generally within designated land
Semi-detached home or townhouse	Generally within designated land
Residential condominium unit	Generally within designated land
Duplex, triplex, fourplex, fiveplex or sixplex	Generally within designated land
Residential apartment building with more than six units	Generally outside the designated-land definition for NRST
Commercial or industrial land	Generally outside the NRST designated-land definition
Agricultural land eligible for the farm-property class	Generally excluded from the single-family-residence definition
Standalone condominium parking or storage unit	Designated land under the rules effective March 27, 2024
Mixed residential/non-residential property	NRST may apply to the residential portion when the statutory apportionment conditions are met

4. Ontario Foreign Persons, Corporations and Trustees

Ontario's NRST does not use a simple '50% foreign ownership' test. A foreign national is generally an individual who is not a Canadian citizen or permanent resident, subject to the statutory definition. A foreign corporation can be a corporation not incorporated in Canada, or certain unlisted Canadian corporations controlled directly or indirectly by a foreign national or a corporation not incorporated in Canada. Ontario's control analysis incorporates the Income Tax Act concept and can include de facto control.

5. Ontario Spousal, Nominee and Protected-Person Exemptions

Ontario provides several exemptions, but they are conditional rather than automatic. A foreign national may qualify for an exemption in a registered transfer when the transferee is a nominee, protected person, or spouse of a Canadian citizen, permanent resident, nominee or protected person, subject to the statutory composition and occupancy requirements.

6. Ontario Joint Liability and the 1% Ownership Trap

Ontario expressly states that the NRST is not prorated to the percentage interest acquired by the foreign transferee. Each transferee is liable for NRST, and if a foreign entity or taxable trustee does not pay, the other transferees may be required to pay the tax. Therefore, adding a foreign national for even a small ownership interest can create a very large NRST exposure unless an exemption applies.

7. Ontario Permanent-Resident NRST Rebate

A foreign national who paid NRST may qualify for a full rebate if the statutory permanent-resident rebate conditions are met. The key timing rule is that the foreign national must become a permanent resident within four years from the date of purchase or acquisition. The rebate is not automatic and has additional ownership, occupancy and application requirements.

8. Ontario Transitional Rules and Historical Rates

Historical NRST rates and geographic rules should not be mixed into a current 2026 calculation. Ontario's NRST originally applied at 15% in the Greater Golden Horseshoe, increased to 20% with province-wide application for agreements entered into on or after March 30, 2022, and increased again to 25% for the current regime effective October 25, 2022. Certain older agreements can remain subject to transitional rules.

9. British Columbia: 20% Additional Property Transfer Tax

B.C.'s equivalent foreign-buyer measure is formally called the Additional Property Transfer Tax. For qualifying residential property in specified regions, a foreign national, foreign corporation or taxable trustee generally pays 20% of the fair market value of the residential property represented by that foreign entity's proportionate registered interest.

10. British Columbia Property Scope, PNP Exemption and Refund

The B.C. Additional Property Transfer Tax applies to the residential portion of qualifying property in the specified regions. It can apply to properties entirely classified as residential as well as certain mixed-class and residential portions of farm land. A confirmed B.C. Provincial Nominee can qualify for a one-time exemption when the required conditions are met, but foreign family members on title do not automatically share the nominee exemption.

B.C. situation	General treatment
Foreign national owns 100% of qualifying residential property in a specified area	20% additional property transfer tax generally applies to the qualifying residential fair market value
Foreign national owns 40%; Canadian citizen owns 60%	20% generally applies to the foreign national's 40% proportionate share
Confirmed B.C. Provincial Nominee buying principal residence	Potential one-time exemption if statutory conditions are satisfied
Nominee's foreign spouse also on title	The spouse does not automatically receive the nominee exemption and may owe tax on their own foreign proportionate share
Property outside the five specified regions	The B.C. Additional Property Transfer Tax generally does not apply
Tsawwassen First Nation treaty lands	Additional property transfer tax does not apply

11. Ontario vs B.C. Practical Compliance Workflow

A buyer should determine the provincial transfer-tax exposure before signing or closing, because the tax base, ownership rules and exemption conditions differ materially between Ontario and B.C.

Action Checklist:

Identify the province where the property is located.
Determine whether the buyer is a foreign national, foreign corporation or taxable trustee under the province's exact definition.
Determine the property classification and whether the property falls within the provincial tax's scope.
For Ontario, determine the value of consideration and whether any transferee triggers the full-consideration NRST rule.
For B.C., determine the residential fair market value and each foreign transferee's registered proportionate interest.
Check all exemption conditions before registration rather than assuming an immigration application or future PR status creates a current exemption.
Provide the closing lawyer/notary with the documentation needed for any exemption.
Confirm that the provincial transfer tax return is completed correctly at registration.
If the tax is paid and a later rebate/refund is possible, track the separate deadline and supporting-document requirements.
Keep the transfer statement, land-title record, immigration documents, proof of occupancy and tax payment evidence.

12. 2026 Accuracy Notes

Ontario and B.C. should not be presented as having one common 'foreign buyer tax' formula. Ontario's NRST is a 25% provincial tax whose full-consideration rule can expose all co-transferees to liability when a foreign entity is involved, while B.C.'s 20% Additional Property Transfer Tax generally applies to the foreign purchaser's proportionate residential share in specified regions.

Frequently Asked Questions

Ontario's current NRST rate is 25%. It applies province-wide to qualifying residential land acquired by a foreign national, foreign corporation or taxable trustee, subject to transitional provisions and statutory exemptions.

Generally no. Ontario states that the NRST is not prorated to the foreign transferee's interest. If any transferee is a foreign entity and no exemption applies, the NRST can apply to 100% of the value of consideration for the conveyance.

A spousal exemption may be available, but it is conditional. The foreign national must satisfy the statutory spouse relationship and transferee requirements, and all transferees must certify that they intend to occupy the home as their principal residence within 60 days after registration. The exemption is not automatic merely because the buyers are married.

B.C. calls it the Additional Property Transfer Tax. The rate is 20% of the fair market value of the qualifying residential property represented by the foreign purchaser's proportionate registered interest, and it applies in specified regions including Metro Vancouver, the Capital Regional District, Fraser Valley, Central Okanagan and Nanaimo.

Potentially. Ontario's PR rebate can apply when the foreign purchaser becomes a permanent resident within four years and meets the ownership, principal-residence and application requirements. B.C. has a separate refund route requiring permanent-resident or Canadian-citizen status within one year plus move-in and one-year principal-residence conditions.

It depends on the province and property classification. Ontario's NRST generally covers designated land containing one to six single-family residences, including residential condo units and certain standalone condo parking or storage units. Buildings containing more than six residential rental units are generally outside Ontario's designated-land scope. B.C.'s additional tax applies to the residential portion of qualifying property in its specified regions, including certain mixed-class and farm properties.

Official Government & CRA References

2026 Foreign-Buyer Tax Metrics

Ontario NRST
25% of applicable value of consideration
BC Additional Property Transfer Tax
20% of foreign purchaser's proportionate residential share
Ontario Co-Ownership Rule
NRST can apply to 100% if any transferee is foreign
PR Refund Windows
Ontario: 4 years; BC: 1 year

Related Tax Tools

Ontario NRST Refund & PR Rebate Guide→Foreign Buyer Ban Residential Property Guide→Ontario Land Transfer Tax Guide→British Columbia Property Transfer Tax Guide→Canadian Permanent Residence and Home-Buyer Tax Guide→

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