General

In the Land Transfer Tax Act, there are provisions for both rebates and refunds, which have different functions.

A rebate is the return of tax properly paid but subsequently returned under a rebate provision after all required criteria have been met. Rebate provisions for the Non-Resident Speculation Tax (NRST) are set out in Ontario Regulation 182/17.

A refund is a return of an overpayment of tax or of tax improperly paid.

Rebates

There are two rebates available for foreign entities that have paid the NRST:

  • permanent resident of Canada NRST rebate
  • industrial use rebate

Note: NRST is payable at the time of the registration of a conveyance. Registrants who fail to pay NRST at registration may be assessed for tax, penalty and interest, even if it is later determined that they are eligible for a rebate.

Transitional NRST rebates no longer available

Under Ontario Regulation 182/17, the following transitional NRST rebates have been phased out and are no longer available:

  • transitional international student NRST rebate
  • transitional foreign national working in Ontario NRST rebate

These rebates were provided under Ontario Regulation 182/17 and applied only to conveyances based on agreements of purchase and sale entered into on or before March 29, 2022. The regulation allowed eligible applicants to apply for a rebate if they became a full-time student or began working in Ontario under a valid work permit within a specified timeframe.

The application deadline of March 31, 2025, has now passed. As a result, applications for these transitional rebates are no longer being accepted. This change reflects the expiry of the transitional provisions in the regulation.

Permanent resident NRST rebate

A rebate of NRST may be available for a foreign national who becomes a permanent resident of Canada.

  • If a rebate application is successful, the entire NRST paid on the purchase of the land will be rebated.
  • This rebate is only available for transfers of residential land that are registered on title. A rebate cannot be made on NRST paid on an unregistered conveyance of land.

To qualify for this rebate, the foreign national must have paid the NRST and must meet all of the following conditions:

  • become a permanent resident of Canada within four years from the date of the purchase or acquisition
  • hold the property alone or with their spouse only
  • occupy the property, along with their spouse, if applicable, as their principal residence for the duration of the period that begins within 60 days after the date the conveyance is registered and ends when they make an application for the rebate or the rebate conditions have been met, whichever is later

A requirement for the rebate is that the home be purchased only by the foreign national eligible for the rebate and, if applicable, their spouse. The definition of spouse, for NRST and LTT purposes, is based on section 29 of the Family Law Act. This term includes either of two persons who are married to each other, or who are not married to each other and who have cohabited in at least one of the following ways:

If a foreign national buys the home with another individual, the foreign national and that individual must be spouses of each other on the day of closing for the foreign national to later qualify for a rebate. Becoming spouses after the day of closing will not be sufficient to meet the requirement that both transferees are spouses of each other, and any rebate application will be denied.

Rebates will not apply if a taxable trustee is a transferee in the conveyance of land subject to the rebate application.

In determining if a person has occupied their home as a principal residence, the ministry looks to the phrase “occupy as a principal residence.” This phrase means the transferees must live in the home as their main residence. Simply designating the home as a principal residence with the Canada Revenue Agency is not sufficient to meet the criteria to occupy the home as your principal residence. For the purposes of Land Transfer Tax (LTT) and NRST, you cannot occupy more than one home as your principal residence. In determining which of two or more homes a taxpayer has occupied as their principal residence, the ministry may consider several factors, including (but not limited to):

  • where the taxpayer sleeps the majority of the time
  • where the taxpayer eats the majority of the time
  • where the taxpayer goes to work or attends school in relation to the two residences
  • where the taxpayer consumes the majority of the utilities (for example, water, sewage, electricity)
  • whether the homes are used for seasonal or recreational purposes

If the two named transferees are spouses of one another, only one of the spouses must become a permanent resident of Canada for the rebate to apply.

The rebate will not apply if a taxable trustee is a transferee in the conveyance of land.

Applications for the rebate must be received by the ministry within 180 days of becoming a permanent resident of Canada. Be aware that the date you are issued or receive a Permanent Resident Card by Immigration, Refugees and Citizenship Canada (IRCC) is not the date that should be relied on for determining when you became a permanent resident of Canada. This card is usually issued sometime after the issuance of permanent resident status, and sometimes well beyond the 180 days to apply for the NRST rebate. Proof of permanent resident status can include:

  • a Confirmation of Permanent Residence document, signed and dated by an immigration officer
  • a letter from IRCC advising that the application for permanent resident status is complete, that the individual is a permanent resident of Canada

Note: Waiting for the Permanent Resident Card to be issued in order to apply for the NRST rebate may result in the lapse of the 180-day rebate application deadline and result in the denial of the rebate.

Supporting documentation will be required to substantiate all applications for this rebate.

Industrial use rebate

A rebate of the NRST may be available if the transferred property is reclassified into one of the following property classes as prescribed under the Assessment Act:

  • industrial property class
  • large industrial property class
  • aggregate extraction property class

The reclassification of the property must occur within six years of the date of the conveyance and must be with respect to a period that begins no later than four years after the date of the conveyance. For example, a property may be eligible for the rebate if it is reclassified five years after the date of the conveyance, so long as the reclassification is effective with respect to a period that begins within four years of the conveyance.

The transferee must apply for the rebate within six years from the date the tax was payable.

If the entire property is reclassified into an eligible industrial property class, the rebate will be equal to the amount of NRST paid. For mixed-use properties, the rebate will be apportioned based on the proportion of the land classified under one of the eligible industrial property classes. Apportionment will be determined using the ratio of the assessed value attributable to the industrial portion of the property to the total assessed value.

Supporting documentation will be required to substantiate all applications for this rebate.

How to apply for a refund or rebate

You can apply for an NRST refund or rebate online and submit supporting documents electronically using the Ministry of Finance’s simple and secure online services portal. No user login or password is required.

Step 1: Visit the Ministry of Finance online services portal

Step 2: Go to the panel titled "Applying for a Land Transfer Tax (LTT) Refund/Rebate"

Step 3: Select “Submit an application for a NRST refund/rebate”

Step 4: Complete the online application form and attach the supporting documents.

Step 5: You will receive an email from the ministry acknowledging receipt of the application the next business day.

Benefits of applying online:

  • it’s easy to use - no user login or password is required
  • the online portal is accessible from any device, including your phone, tablet or computer
  • you can save your application and return later to complete it
  • no signatures required
  • you get immediate confirmation that your application was received

You can also download the Ontario Land Transfer Tax Refund/Rebate Affidavit and submit the completed form and supporting documents by email, fax or mail.

Supporting documentation

You must include all the necessary supporting documents to successfully submit your NRST refund or rebate application.

Note: Form 9996 (Ontario Land Transfer Tax Refund / Rebate Affidavit) must accompany all rebate applications

  • Interim instructions for industrial use rebate – pending updates to Form 9996, applicable applications for the industrial use rebate must include an affidavit from the applicant that expressly confirms that the requirements of section 7.3 of the Regulation have been met.  The affidavit must expressly state:
    • the effective date of the reclassification
    • the specific industrial property class to which the land has been reclassified
    • the % of the assessed value of the land that has been reclassified

Permanent resident NRST rebate

The rebate application must include the following supporting documents:

  • copy of the registered Transfer
  • copy of the agreement of purchase and sale, together with all schedules, amendments and assignments
  • copy of the Statement of Adjustments (if applicable)
  • proof of occupancy as principal residence within 60 days of the day of conveyance and continuing until the application for rebate is received by the ministry, or rebate conditions have been met, whichever is later. Examples of proof of occupancy include copies of updated driver’s license, credit card statement, bank statement, moving bills, car insurance bills, purchase receipts. Utility bills, property tax bills and home insurance are not acceptable proof of occupancy. The ministry reserves the right to request further documentation.
  • copy of Permanent Resident Card (front and back) or Confirmation of Permanent Residence. If the Card or Confirmation is not available, other documentation that confirms Permanent Residence Status may be accepted.

The application for a rebate must be received by the ministry within 180 days of the transferee becoming a permanent resident of Canada.

Industrial use rebate

The rebate application must include the following supporting documents:

  • copy of the registered transfer (if applicable)
  • copy of the Statement of Adjustments (if applicable)
  • copy of the agreement of purchase and sale, together with all schedules, amendments and assignments
  • proof of reclassification to an industrial property class, such as a Notice of Assessment from the Municipal Property Assessment Corporation or a property tax bill from the municipality in which the land is situated
    • Note: the effective date of the reclassification to an industrial property class must begin during the four-year period following the registration of the conveyance or the disposition of the beneficial interest in land
    • if a partial rebate is being claimed on grounds that only a portion of the land has been reclassified, proof of apportionment that allows for the calculation of the partial rebate using the formula set out in subsection 7.3(2) of the Regulation
  • if the rebate is claimed on a disposition of a beneficial interest in land for which tax had not been paid, a completed Form 0775 (Return on the Acquisition of Land).
    • Note: NRST is payable at the time of the registration of a conveyance or on the 30th day after the date of the disposition.  Registrants who fail to pay NRST at registration may be assessed for tax, penalty and interest, even if it is later determined that they are eligible for a rebate. 

Requesting a refund for overpayment of NRST

Various reasons for an overpayment of NRST are outlined on the Refunds of Land Transfer Tax (including Non-Resident Speculation Tax) and Rebates of Non-Resident Speculation Tax web page.

You must provide supporting documentation to substantiate all refund applications. An application for a refund may be made by submitting the following documentation to the ministry within four years of payment of tax:

  • copy of the registered Transfer, or the Return filed with the ministry if a conveyance was not registered on title to the land
  • copy of the Agreement of Purchase and Sale, and any assignments, with all schedules and amendments attached
  • copy of the draft Statement of Adjustments (if applicable)
  • any additional documents as may be required to determine the value of the consideration
  • Authorizing or Cancelling a Representative form(s), completed by each transferee (if applicable)

You can also download the Ontario Land Transfer Tax Refund/Rebate Affidavit and submit the completed form and supporting documents by email, fax or mail.

The ministry reserves the right to request further documentation.

Direct deposit

The Ontario Ministry of Finance offers a Direct Deposit service that deposits rebate and refund payments directly into your account at the bank of your choice.

Download: Direct Deposit Request/Direct Deposit Authorization

Contact us

If this page does not completely address your situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact us by:

Email: LTTGeneral@Ontario.ca
Fax: 905-433-5770
Toll-free: 1-866-668-8297
TTY: 180-026-3777
Mail: Ministry of Finance Land Taxes Section 33 King Street West Oshawa ON L1H 8H9