The province of Ontario levies a Non-Resident Speculation Tax on the price of homes purchased in Ontario by foreign nationals (individuals who are not citizens or permanent residents of Canada), foreign corporations, or taxable trustees. Earlier this year, the province increased the rate of the Non-Resident Speculation Tax from 15% to 20%, and expanded it to apply to home purchases anywhere in the province.

Ontario Finance has now announced that a further increase in the rate of the tax will take effect for agreements of purchase and sale entered into on or after October 25, 2022. As of that date, the rate will increase from 20% to 25%.

The press release announcing the rate increase is available on the Ontario Finance website at Ontario Continues to Crack Down on Foreign Real-Estate Speculation | Ontario Newsroom. More detailed information on the Non-Resident Speculation Tax can be found on the provincial government website at Non-Resident Speculation Tax | Land Transfer Tax | ontario.ca.