Are development charges the same across Ontario?

No. Each applicable municipal by-law and schedule sets local rates. Upper-tier or area-specific charges may also apply. Use the schedules for the property’s actual location.

Can I calculate development charges from the number of units alone?

No. You also need the chargeable dwelling types or area, the applicable dates, and the rules for exemptions, credits, discounts, and interest. Ask the municipality to confirm the project calculation.

Do Toronto’s reduced 2026 rates apply to every project?

No. By-law 1261-2026 includes conditions. The City’s notice reviewed October 8, 2026 describes the program as subject to a provincial Transfer Payment Agreement. Verify the program status and project eligibility before budgeting the reduction.

Development charges in Canada

Development charges are charges on development that help municipalities fund infrastructure needed for growth. In Ontario, the applicable municipal by-law sets the calculation.

There is no single Ontario rate: location, unit type, floor area, exemptions, credits, and the applicable dates can change the amount payable.

What development charges cover

This explainer covers Canada, with Ontario and Toronto examples. Ontario’s Development Charges Act provides the framework for municipal development-charge by-laws. Eligible infrastructure and services, local rates, exemptions, and payment rules must be checked against the applicable legislation and by-law.

Development charges are one part of a project’s municipal costs. Building permit fees, education development charges, community benefits charges, and parkland requirements can be separate. A municipal development-charge schedule is not an all-in development fee quote.

How to calculate development charges in Ontario

Identify the municipality and any other applicable charging authority. Find its current by-law and rate schedule, including area-specific charges. Residential schedules commonly distinguish dwelling types; non-residential schedules commonly use a defined floor area.

For an initial estimate, multiply the applicable rate by the chargeable units or area, then apply the rules for exemptions, redevelopment credits, discounts, and any applicable interest. Confirm the date that determines the rate and the payment timing with the municipality. Those rules cannot be inferred from the unit count alone.

Ontario rates vary by municipality. Toronto’s schedule below cannot be used for Burlington or another city. Burlington publishes its own schedule, including a schedule effective June 1, 2026, on its development-charges page.

Toronto’s published residential base rates

The City’s rates page, last modified July 20, 2026, links the base schedule effective June 26, 2025. The amounts below reproduce that schedule, reviewed October 8, 2026. They are base municipal development charges, not a determination of the amount payable for a particular permit.

The rental column is the schedule’s qualifying rental category. Renting out an individual home does not by itself establish eligibility for that category. Confirm the by-law definition and any further relief with the City.

Toronto base schedule effective June 26, 2025: CAD per dwelling unit

Dwelling type	Non-rental	Rental
Single or semi-detached	137,846	Not listed in this category
Apartment: bachelor or one bedroom	52,676	33,497
Apartment: two bedrooms	80,690	48,299
Apartment: three or more bedrooms	80,690	45,280

Check the conditions on Toronto’s 2026 reductions

Toronto enacted By-law 1261-2026 on July 30, 2026. It provides reduced rates for qualifying development, subject to conditions including a provincial Transfer Payment Agreement and specified permit and occupancy dates. The City’s notice reviewed October 8, 2026 still describes the reduction program as subject to that agreement.

The by-law lists conditional non-rental apartment rates of CAD 31,606 for a bachelor or one-bedroom unit and CAD 32,276 for a unit with two or more bedrooms. Do not substitute these for the base schedule, or combine reductions, until the City confirms the project qualifies and the program conditions have been met.

A base-rate estimate for a 15-unit proposal

Assume ten non-rental one-bedroom apartments and five non-rental two-bedroom apartments. Using only the June 26, 2025 base schedule: (10 × CAD 52,676) + (5 × CAD 80,690) = CAD 930,210.

This example assumes no exemptions, credits, conditional reductions, interest, or other fees. It shows the arithmetic, not a City quote. Verify the applicable schedule, definitions, relief, and dates before using an estimate in a land offer or project budget.

Carry verified charges into the project’s feasibility comparison. Bucky can help identify available site and zoning facts, but it does not provide an address-specific development-charge quote. Obtain that calculation from the applicable municipality.

Free toolWhat is my property zoned for?Zone code, permitted and conditional uses, and the overlays that modify them — cited to the bylaw section.Try it →

Common questions

Are development charges the same across Ontario?: No. Each applicable municipal by-law and schedule sets local rates. Upper-tier or area-specific charges may also apply. Use the schedules for the property’s actual location.
Can I calculate development charges from the number of units alone?: No. You also need the chargeable dwelling types or area, the applicable dates, and the rules for exemptions, credits, discounts, and interest. Ask the municipality to confirm the project calculation.
Do Toronto’s reduced 2026 rates apply to every project?: No. By-law 1261-2026 includes conditions. The City’s notice reviewed October 8, 2026 describes the program as subject to a provincial Transfer Payment Agreement. Verify the program status and project eligibility before budgeting the reduction.
Do development charges include every municipal fee?: No. Permit fees, education development charges, community benefits charges, and parkland requirements can be separate. Build a complete fee checklist for the municipality and proposal.

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