Effective January 1, 2025, the City of Toronto (“City”) has implemented a 10% tax on the purchase of residential properties by foreign entities, including individuals and corporations, that do not reside in Canada. This tax is payable on the closing date.

The primary objective of the MNRST is to safeguard and enhance the availability of residential housing supply and to maintain a level of affordability in the residential real estate market by discouraging international buyers from purchasing property in the City of Toronto, particularly those buyers who do not intend to live in the property, or where the purchase is for purely speculative motives.

MNRST mirrors the structure, applicability, exemptions, rebates, and refund process of the Provincial NRST. The key difference is the rate:

• MNRST is charged at 10% of the purchase price
• NRST is charged at 25% of the purchase price (as of October 25, 2022)

This means that if a foreign buyer purchases a residential property subject to both NRST and MNRST, they will pay a combined 35% speculation tax—on top of the Provincial and Municipal Land Transfer Taxes. More

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