The tax for foreign buyers of real estate in Ontario has been increased to 25 per cent | Catch My Job

Ontario announced on Tuesday that it is raising the speculation tax on non-resident homes purchased by foreign nationals from 20 to 25 per cent.

Finance Minister Peter Betlenfalvey says the move makes Ontario’s tax rate the highest in Canada and seeks to discourage foreign speculation.

The Progressive Conservative government previously raised the non-resident speculation tax from 15 per cent to 20 per cent in March and extended it to the entire province, instead of just the Greater Golden Horseshoe area in southern Ontario.

Municipal Affairs and Housing Minister Steve Clarke is also due to introduce a piece of housing legislation on Tuesday, as the government aims to hit a target of 1.5 million homes to be built over 10 years.

Clark said in a statement that the tax increase is another step toward ending Ontario’s housing crisis.

The government’s previous housing bill was one that gave the mayors of Toronto and Ottawa so-called strong mayoral powers, which would have allowed those cities’ leaders to veto council votes opposed to housing development.

Ontario’s budget for this year showed that the non-resident speculation tax is projected to bring in $175 million this fiscal year.

This Canadian Press report was first published on October 24, 2022.