In a news release, the government said it is increasing the non-resident speculation tax to 20% from the previous rate of 15%. The tax is also being expanded provincewide, growing beyond the Greater Toronto Area (GTA).
The increased and expanded tax goes into effect today (March 30).
Ontario government officials have said the expanded tax is aimed at tackling speculative foreign homebuyers who are seeking to make a quick buck in the housing market.
Home prices in the GTA have risen higher in recent months amid a persistent supply crunch that propelled the average selling price to a record of $1.3 million in February this year.
In the news release, Ontario’s government said it will provide relief from the non-resident speculation tax to foreign residents who “commit to laying down roots in the province long-term.”
