TORONTO — As part of its plan to tackle Ontario’s housing crisis, the government is prioritizing Ontario families and homebuyers by increasing the Non-Resident Speculation Tax rate from 20 per cent to 25 per cent, effective October 25, 2022.
This increase will strengthen efforts to deter non-resident investors from speculating on the province’s housing market and help make home ownership more attainable for Ontario residents. For many years, there have been concerns that foreign real-estate speculation is an important factor driving up the cost of housing in Ontario.
“Young families, newcomers and those all over the province dream of having their own home, a dream which continues to be out of reach for too many,” said Peter Bethlenfalvy, Minister of Finance. “To help Ontario homebuyers, our government is increasing the Non-Resident Speculation Tax rate by another five percentage points to 25 per cent, making it the highest in Canada, to further discourage foreign speculation in Ontario’s housing market.”
This increase builds on the government’s previous actions taken in March 2022 to make Ontario’s Non-Resident Speculation Tax the most comprehensive in Canada, including:
- Increasing the rate to 20 per cent, from 15 per cent;
- Expanding the tax to apply provincewide, as it previously only applied to homes purchased in the Greater Golden Horseshoe Region; and,
- Eliminating loopholes by focusing relief eligibility to only newcomers who commit to laying down roots in the province long-term.
This increase to the Non-Resident Speculation Tax rate is part of a suite of concrete actions the Province is taking to address Ontario’s housing crisis. Last week, the government announced that Ontario is also cracking down on bad actors by doubling the fines for unethical and illegal new home cancellations. These steps, built on recommendations from the Housing Affordability Task Force and the first-ever Provincial-Municipal Housing Summit, will deliver both near-term solutions and long-term commitments to provide more attainable housing options for Ontario families.
“Today’s announcement is another step in our government’s plan to make housing more attainable for all Ontarians,” said Steve Clark, Minister of Municipal Affairs and Housing. “We are working to end Ontario’s housing supply crisis – both by building 1.5 million new homes over the next 10 years, and by ensuring Ontarians are able to access our existing housing supply. These measures are a clear indication of our commitment to do precisely that.”