Toronto Development Charges in 2026: When Do Custom Homes, Additions and Multiplexes Pay?

416 Construction

16 hours ago

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Toronto custom home, home addition and multiplex construction illustrating 2026 Toronto development charges, building permits and residential development costs.

Last updated: September 7, 2026

A Toronto homeowner can price a custom home down to the finishes and still miss one of the largest municipal costs in the budget: development charges. At the same time, another homeowner adding a second storey or converting a house into a fourplex may owe little or no City of Toronto development charge because different exemptions apply.

The result is confusing but important: development charges are not a flat permit fee. Whether they apply depends on what is being built, how many dwelling units are being created, whether an existing lawful building is being replaced, the project's tenure and timing, and whether a statutory exemption, Toronto exemption, redevelopment reduction or incentive program applies.

The City of Toronto describes development charges as fees imposed on development and redevelopment to help fund growth-related capital infrastructure.

Quick Answer

In Toronto in 2026, a new custom home is generally subject to residential development charges unless an exemption, redevelopment reduction or other incentive applies. A normal home addition that only enlarges an existing dwelling unit is exempt under Ontario's Development Charges Act. For developments of up to six residential units on one parcel, Toronto reduces the development charge on the second through sixth units to $0 if they are not already exempt under provincial law. Non-rental residential charges are generally paid before occupancy is granted, not at building-permit issuance.

Key Takeaways

A new custom home can carry a substantial Toronto municipal development charge.
An addition that only enlarges an existing residential unit does not trigger a development charge under the provincial Act.
Since July 24, 2025, Toronto reduces the charge on the second, third, fourth, fifth and sixth units in developments of up to six units to $0, if another statutory exemption has not already eliminated the charge.
A garden or laneway suite can qualify for a separate 20-year development-charge deferral program where program conditions are met.
For non-rental residential development, applicable Toronto DCs are generally payable before an occupancy permit is granted.
Purpose-built rental developments use a different rate/payment framework and generally pay in six annual instalments beginning at occupancy.
Toronto adopted a temporary Development Charges Reduction Program with 40% and 60% reductions, but as of September 7, 2026, the City's current public page still says those decreases are contingent on execution of the required Transfer Payment Agreement.
Education Development Charges are separate from City development charges; the TCDSB residential EDC is $3,893 per dwelling unit through December 2, 2026, subject to its own exemptions and rules.

What development charges are
The 2026 Toronto residential rates
Do custom homes pay development charges?
Do home additions pay development charges?
Do duplexes, triplexes, fourplexes, fiveplexes and sixplexes pay?
How demolition and redevelopment can affect the bill
Toronto's conditional 2026 reduction program
When development charges are paid
Education development charges
Garden and laneway suite deferrals
Other fees that are not development charges
A step-by-step budgeting process
Common mistakes
When to confirm the calculation with Toronto Building

What Are Toronto Development Charges?

Development charges, usually shortened to DCs, are municipal charges intended to help fund infrastructure needed because of growth. Toronto's current DC framework funds eligible services such as transit, roads, water, sanitary sewers, stormwater management, parks and recreation, libraries, police, fire, ambulance services, child care, waste diversion and long-term care.

The City says development charges may apply when a project constructs a new building, adds residential units, increases non-residential gross floor area, redevelops property or changes a building's use. Residential DCs are generally calculated by the number and type of dwelling units, rather than simply by the square footage of a house. City of Toronto — Development Charges Overview

That means two projects with similar construction budgets can have completely different development-charge outcomes.

What Are Toronto's Base Residential Development Charge Rates in 2026?

Toronto removed annual indexing for 2025 and 2026, so the City's published schedule effective June 26, 2025 remains the key base municipal rate schedule currently shown by the City. City of Toronto — Bylaws, Rates & Study

Non-rental residential base rates

| Residential unit type | Base City DC per | Single or semi-detached dwelling | $137,846 | | Multiple dwelling, 2+ bedrooms | $113,938 | | Multiple dwelling, 1 bedroom/bachelor | $57,153 | | Apartment, 2+ bedrooms | $80,690 | | Apartment, 1 bedroom/bachelor | $52,676 | | Dwelling room | $37,356 |

These are City of Toronto municipal development charges in Canadian dollars. They are not a complete project-fee estimate and do not include building-permit fees, professional design fees, construction costs, education development charges or other project-specific municipal requirements. The City's published DC schedule presents fixed statutory charge amounts and does not identify HST as an additional line item on those amounts; applicants should use the City's actual assessment for the amount payable.

The biggest mistake is to multiply these rates by every proposed unit without first checking the exemptions. For a low-rise multiplex, the exemptions can change the calculation dramatically.

Do New Custom Homes Pay Toronto Development Charges in 2026?

Generally, yes. A new freehold custom home is the low-rise homeowner scenario most likely to face a significant municipal development charge. Toronto lists constructing a new building as a type of development that may attract DCs, and its base non-rental rate for a single or semi-detached dwelling is $137,846 before applicable exemptions, credits, reductions or the conditional 2026 program are considered. City of Toronto — Development Charges Overview

A custom-home owner should not automatically assume that $137,846 is the final amount, however. The calculation can change because of:

an existing lawful dwelling being demolished and replaced;
a redevelopment reduction or credit;
a second or third dwelling unit that qualifies for a provincial exemption;
Toronto's second-through-sixth-unit $0 rule;
a qualifying garden or laneway suite deferral;
a planning-application rate under section 26.2 of the Development Charges Act;
a Section 27 agreement; or
the time-limited 2026 Development Charges Reduction Program if and when all program conditions are operative and satisfied.

Example: a new one-unit detached custom home on a vacant lot

If a homeowner builds one new detached dwelling on a vacant Toronto lot and no exemption, credit or special rate applies, the single/semi rate is the relevant starting point. For a non-rental freehold home, payment is generally due before occupancy is granted rather than at the building-permit stage. City of Toronto — Non-Rental Residential Development Charges

Example: demolishing an existing house and rebuilding

A teardown-and-rebuild should not be budgeted like a vacant-lot build without first checking redevelopment rules. Toronto's bylaw provides redevelopment reductions in qualifying circumstances, and the City's own guidance lists credits for redevelopment of land among its available DC mechanisms. The exact credit depends on the lawful existing development, demolition and permit history, unit classification and timing. City of Toronto — Development Charges Overview

Because a replacement-home calculation is highly fact-dependent, homeowners should obtain the Toronto Building calculation rather than assume that an old house automatically cancels the new-home charge.

Do Toronto Home Additions Pay Development Charges?

A normal addition that only enlarges the existing dwelling unit is exempt from development charges. Ontario's Development Charges Act says an approval or building permit does not satisfy the development-charge trigger where its only effect is to permit the enlargement of an existing residential unit. Ontario — Development Charges Act, 1997

That is a major distinction for homeowners planning projects such as:

a rear family-room extension;
a second-storey addition;
a primary-bedroom addition;
an expanded kitchen;
an attached garage incorporated into the same dwelling; or
another addition that increases the size of the same existing residential unit without creating a new dwelling unit.

The exemption does not mean the project is free of municipal costs. The addition can still require zoning review, architectural drawings, structural engineering, a building permit and other approvals. Toronto's 2026 building-permit fees are separate from development charges. City of Toronto — Small Residential Additions

What if the addition creates another dwelling unit?

Then the analysis changes. Adding floor area to the same home and adding a new legal dwelling unit are different development-charge questions.

Ontario provides statutory exemptions for certain additional residential units in existing and new detached, semi-detached and row houses. Toronto goes further: if a unit is not already exempt under provincial law, the City reduces the development charge on the second through sixth residential unit in a development of up to six units on one parcel to $0. City Council Item MM32.5

This is why a second-storey addition built only for more bedrooms can have no DC, while a large addition used to create a multi-unit redevelopment requires a unit-by-unit analysis—even though the eventual City DC may still be $0 on the added units.

Do Toronto Multiplexes Pay Development Charges?

For many low-rise Toronto multiplex projects, the added units can be exempt or reduced to $0.

Toronto's current overview states that, where a statutory exemption does not already apply, the second, third, fourth, fifth and sixth residential unit in developments of up to six units are exempted by the City's bylaw through a $0 development-charge amount. That Toronto rule took effect July 24, 2025. City of Toronto — Development Charges Overview

Existing house converted from one unit to a fourplex

A typical conversion that keeps the existing lawful first dwelling and creates three additional units may have $0 City municipal development charges on units two through four, subject to the project meeting the City's requirements and the owner providing satisfactory evidence for the exemption.

That does not mean every municipal cost is zero. Building-permit fees, education development charges, servicing work and other approvals are separate questions.

Existing house converted to five or six units

Toronto's July 2025 amendment expanded the City's $0 treatment to the fifth and sixth units in developments of up to six units on one parcel. City Council Item MM32.5

The underlying zoning question is separate. Toronto does not have identical five- and six-unit permissions on every low-rise lot, so a property still needs a zoning and building feasibility review before the development-charge rule is useful.

New-build fourplex, fiveplex or sixplex

A new multiplex requires a more careful calculation. Toronto's municipal exemption is written for the second through sixth units. Therefore, the first otherwise-chargeable unit can remain relevant, while units two through six may be reduced to $0. If the project replaces lawful existing development, a redevelopment reduction may affect the remaining first-unit charge.

The exact amount also depends on how Toronto Building classifies the unit type for DC purposes and whether any provincial exemption applies. This is one reason to obtain a written project-specific DC calculation before finalizing financing.

Multiplex plus a garden or laneway suite

Toronto expressly provides that a qualifying garden or laneway suite subject to a Development Charge Deferral Agreement is not counted when calculating the six-unit total for the main development. This can allow a qualifying property to have up to six units in the principal building plus the separate suite while preserving the suite's deferral. City Council Item MM32.5

How Does Demolition and Redevelopment Affect Development Charges?

Toronto provides redevelopment reductions so that a property with existing lawful development is not necessarily treated the same way as a completely vacant site. The City also places the onus on the owner or applicant to prove entitlement to an exemption or reduction. City of Toronto — Development Charges Overview

For a homeowner, the important records can include:

the existing lawful dwelling-unit count;
building-permit history;
demolition permit date;
the date a complete replacement-building permit application is submitted;
prior legal use of the building; and
the unit types proposed in the replacement development.

Do not demolish first and investigate the credit later. For a teardown custom home or multiplex redevelopment, the potential DC treatment belongs in the feasibility study before the demolition permit and financing assumptions are locked in.

What Is Toronto's 2026 Development Charges Reduction Program?

Toronto Council adopted By-law 1261-2026 in July 2026 to establish a time-limited program that would reduce certain residential development charges by approximately 40% for one-bedroom/bachelor units and 60% for larger units, dwelling rooms, singles and semis. City Council — Implementation of the Development Charges Reduction Program

As of September 7, 2026, Toronto's current Development Charges webpage still states that the amended bylaw is subject to a Transfer Payment Agreement with the Province of Ontario and that additional information will be available once the agreement is received. City of Toronto — Development Charges

The adopted Schedule D itself says that the decreased amounts apply only where the Transfer Payment Agreement has been fully executed and several permit-timing conditions are met. Among other requirements, the first relevant building permit generally must not have been issued before March 30, 2026, and the applicable above-grade permit must meet the program deadlines. Eligibility is confirmed at occupancy. Schedule D

Practical implication: use the lower Schedule D figures as a potential incentive, not as an unconditional 2026 budget number, until Toronto confirms that the agreement is operative for the project and Toronto Building confirms eligibility.

When Are Toronto Development Charges Paid in 2026?

The timing changed materially in late 2025.

Non-rental residential: before occupancy

Effective November 3, 2025, Toronto says development charges for non-rental residential development such as freehold homes and condominiums must be paid in full before occupancy is granted. City of Toronto — Non-Rental Residential Development Charges

For a custom-home owner, that can improve early construction cash flow compared with a system that required the full charge at building-permit issuance—but the money still has to be available before legal occupancy.

Rental housing: six instalments

Rental housing development, as defined by the legislation, generally pays Toronto DCs in six equal annual instalments. The first instalment begins at occupancy, defined as the earlier of the occupancy permit or first occupancy, with the remaining five instalments due on subsequent anniversaries. City of Toronto — Rental & Institutional Development Charges

Do not assume that simply intending to rent one unit automatically makes a small homeowner project a purpose-built rental development for every DC rule. Tenure and development classification should be confirmed with Toronto Building for the specific permit.

Planning-application rates can change which rate is used

If a qualifying site plan—or rezoning where no site plan applies—was submitted on or after January 1, 2020, and the first building permit is issued within 18 months of planning approval, section 26.2 rules can make the planning-application rate relevant where that calculation is lower than the permit-rate calculation plus applicable interest. City of Toronto — Development Charges Overview

This is less common for a simple as-of-right house addition but can matter for more involved custom-home and redevelopment files.

Do Education Development Charges Apply Too?

Potentially, yes. Education Development Charges are separate from the City municipal DC. Toronto collects the Toronto Catholic District School Board's EDC on the Board's behalf.

For a residential building permit issued from December 3, 2025 through December 2, 2026, the published residential EDC rate is $3,893 per dwelling unit. It rises to $4,193 for the period beginning December 3, 2026. City of Toronto — Education Development Charges

The Education Act and TCDSB bylaw have their own exemption rules. A City municipal DC exemption should therefore not be treated as automatic proof that the education charge is also zero.

The EDC is generally imposed when the first building permit for above-ground construction is issued, or on the next applicable permit if it was not collected on the first. That payment timing is different from Toronto's current non-rental municipal DC timing.

How Does the Garden and Laneway Suite Deferral Work?

Toronto offers a Development Charges Deferral Program for eligible rear-yard ancillary secondary dwelling units. Under the current City program, the development charge can be deferred for 20 years from building-permit issuance and can become payable earlier if specified events occur, including creation of a new lot or failure to complete an assumption agreement on a property transfer. City of Toronto — Laneway and Garden Suite Development Charges Deferral Program

Toronto says the application review typically takes 15–20 business days and recommends applying as soon as the building-permit application is made. The City also warns applicants who intend to use the program not to pay the development charge first because the City cannot simply credit the fee back afterward.

Council expanded the general terms in May 2026 to make the secondary-dwelling-unit deferral framework work more consistently for qualifying condominium multiplex situations as well, provided the program conditions are satisfied. City Council Item CC41.1

What Other Toronto Fees Can Be Confused With Development Charges?

Development charges are only one part of a municipal-cost budget.

Building-permit fees

Building-permit fees fund permit review and inspection services and are calculated separately. Toronto's 2026 residential permit schedules include per-square-metre construction fees and a separate fee for each new residential unit. City of Toronto — Building Permit Fees

Education development charges

As discussed above, EDCs are a separate school-board charge with their own rates and exemptions.

Parkland dedication or cash-in-lieu

Parkland requirements are governed separately. Toronto also adopted specific relief for second through sixth units in qualifying developments. Do not use a development-charge exemption as a substitute for checking the parkland rule.

Community Benefits Charge

Toronto's CBC generally applies to developments at least five storeys high that add at least ten residential units. A conventional single custom home or low-rise fourplex therefore does not meet that threshold. City of Toronto — Community Benefits Charge

Utilities and servicing

Water-service upgrades, sewer work, hydro service, utility relocations and other site servicing are construction or utility costs, not Toronto's per-unit development charge.

416 Construction Practical Guidance: Calculate DCs Before the Design Is Locked

Development charges should be treated as a feasibility input, not a late permit-stage surprise.

For a Toronto custom home, addition or multiplex, a practical early-stage review should identify:

Existing legal unit count. Confirm what is lawfully on the site now.
Proposed unit count and unit type. A one-unit home, fourplex and larger apartment project can be assessed differently.
Whether the work is only an enlargement. A simple addition may be exempt even though a building permit is required.
Provincial additional-unit exemptions. Ontario law can exempt certain second and third units.
Toronto's second-through-sixth-unit rule. For qualifying developments up to six units, the City's added-unit charges can be $0.
Demolition/redevelopment history. A replacement project may qualify for a redevelopment reduction.
Garden or laneway suite strategy. A deferral agreement can materially alter the timing of that suite's DC.
Education development charges. Keep them as a separate line item.
2026 DCRP eligibility. Do not bank the conditional reduced rate until its operative status and project conditions are confirmed.
Payment timing. For non-rental residential work, plan the cash requirement before occupancy.

This is also why drawings and budgeting should develop together. 416 Construction's architectural drawings service covers custom homes, additions and multi-unit conversions, while its design-build service coordinates design, engineering, permits and construction through one process.

Step-by-Step: How to Budget Development Charges Before a Toronto Project

Step 1: Confirm the governing municipality

North York, Etobicoke and Scarborough are all part of the City of Toronto, so Toronto's DC bylaw applies. Mississauga, Oakville, Burlington, Vaughan, Richmond Hill and Pickering are outside Toronto and have different municipal and regional development-charge frameworks. Do not transfer Toronto's $0 multiplex rules or Toronto rates to those municipalities.

Step 2: Establish the lawful existing condition

Get the survey, building records, existing drawings and permit history needed to establish the current building and unit count.

Step 3: Define the development scenario

Compare options before committing. For example:

keep the existing one-unit house and add floor area;
keep the house and create three additional units;
demolish and rebuild one custom home;
demolish and build a fourplex; or
build a multiplex plus a garden or laneway suite.

The DC result may differ significantly among these options.

Step 4: Identify statutory and Toronto exemptions

Review the Development Charges Act and Toronto Chapter 415 against the actual design—not a generic project description.

Step 5: Determine whether a redevelopment reduction applies

For teardown projects, obtain a City calculation using the demolition and existing-use records rather than assuming a credit.

Step 6: Separate City DCs from EDCs and other fees

Keep independent budget lines for municipal DCs, education DCs, permit fees and other applicable charges.

Step 7: Confirm the rate date and payment date

The rate that determines the liability and the date cash is actually due can be different. Planning-application timing, permit issuance and occupancy can each matter.

Step 8: Get Toronto Building to confirm the project-specific calculation

Toronto Building calculates and collects development charges based on the plans and information in the permit and planning files. The City's Development Charges page lists Toronto Building Customer Service at 416-397-5330 for calculation and payment questions. City of Toronto — Development Charges Overview

Step 9: Preserve the supporting evidence

The owner has the burden of demonstrating entitlement to an exemption or reduction. Save permits, demolition records, legal-use evidence, deferral agreements and City correspondence.

Step 10: Reconfirm before occupancy

This is especially important in 2026 because the temporary reduction program is tied to conditions that can be confirmed at occupancy, while non-rental residential DCs themselves are now generally paid before occupancy is granted.

Common Development-Charge Mistakes in Toronto

Assuming every custom home pays the same amount

A vacant-lot build and a teardown replacement can have different results because redevelopment reductions may apply.

Confusing an addition with a new dwelling unit

Adding 600 square feet to the same dwelling is not the same DC question as adding a separate apartment.

Multiplying the published rate by every unit in a fourplex

Toronto's second-through-sixth-unit $0 rule can make that calculation dramatically wrong.

Assuming “$0 City DC” means “no municipal fees”

Permit fees, EDCs, servicing, planning fees and other charges are separate.

Assuming the 2026 DCRP reduction is already unconditional

Toronto has enacted the framework, but the City's current page still identifies the required Transfer Payment Agreement as a condition. Budget the benefit cautiously until the City confirms it for the project.

Paying a garden-suite DC before applying for the deferral

Toronto specifically warns applicants who intend to use the deferral program not to pay the charge first.

Waiting until permit issuance to ask about redevelopment credit

The demolition history and lawful existing use should be reviewed while the project is still being designed and financed.

When Should You Contact a Designer, Engineer, Planner or the City?

Contact a BCIN-qualified designer or architect when the project needs permit drawings or unit layouts.

Contact a structural engineer when additions, underpinning, major wall removals or new structural systems are part of the design.

Contact a planner when zoning, severance, rezoning, site plan or a complex redevelopment affects the project and potentially its DC rate date.

Contact Toronto Building for the project-specific development-charge calculation, the classification of unit types, exemptions, redevelopment treatment and payment requirements.

Contact a real-estate lawyer when a garden/laneway suite deferral agreement, condominium structure, severance or title registration is involved.

For the construction side, 416 Construction can coordinate feasibility, architectural design, engineering, permits, budgeting and construction for custom homes, home additions and rental/multiplex conversions.

Conclusion: When Do Custom Homes, Additions and Multiplexes Pay Toronto Development Charges?

The answer in 2026 depends more on what the project creates than on how expensive the construction is.

A new custom home is generally chargeable, subject to credits, exemptions and incentives. A home addition that only enlarges the existing dwelling unit is exempt under Ontario law. For Toronto developments of up to six units, units two through six can have a $0 City development charge if they are not already statutorily exempt. Garden and laneway suites have a separate deferral pathway, while education development charges remain a separate calculation.

The safest budget is not a guess based on a rate table. It is a project-specific calculation based on the existing property, proposed drawings, unit count, demolition history and permit timing.

If you are deciding between an addition, teardown custom home or multiplex, 416 Construction can coordinate the design, engineering, permit and construction feasibility so the municipal-cost assumptions are considered before the project is committed. Call 647-624-8110 or visit 416 Construction.

Informational disclaimer: This article provides general information about Toronto development charges and construction planning as of September 7, 2026. It is not legal, tax or financial advice and is not a municipal development-charge assessment. Development-charge calculations are property- and application-specific. Confirm the amount, exemptions, credits, rate date and payment timing with Toronto Building and obtain legal or other professional advice where appropriate.

Frequently Asked Questions:

How much is the Toronto development charge on a new detached custom home in 2026?

Toronto's published base municipal rate for a non-rental single or semi-detached dwelling is $137,846. A lower amount may result from a redevelopment reduction, statutory exemption or other program. Toronto has also adopted a conditional 2026 reduction amount of $55,138 for singles and semis, but the City's current page still says that program depends on execution of the required Transfer Payment Agreement and project eligibility.

Does a second-storey addition have development charges in Toronto?

Usually not if the work only enlarges the existing dwelling unit. Ontario's Development Charges Act excludes an approval from the DC trigger where its only effect is the enlargement of an existing residential unit. Building-permit fees, engineering, zoning requirements and other costs can still apply; the exemption is specifically about development charges.

Does a rear home extension have Toronto development charges?

A rear extension that simply enlarges the same existing dwelling is generally exempt from development charges under provincial law. If the extension also creates one or more new dwelling units, the additional-unit rules must be reviewed. In Toronto, units two through six in a development of up to six units may be exempt or reduced to $0.

Do I pay development charges to convert my Toronto house into a duplex?

The added second unit will often be exempt. Ontario law provides exemptions for specified additional residential units, and Toronto's bylaw also reduces the second through sixth units in developments of up to six units to $0 where they are not already exempt. Permit fees and education development charges must still be checked separately.

Do Toronto fourplexes pay development charges?

Many fourplex conversions have no City municipal development charge on the additional units because Toronto's current bylaw reduces units two through six in developments of up to six units to $0. A new-build fourplex can still require a calculation for the first otherwise-chargeable unit, and redevelopment reductions may affect that amount if lawful existing development is being replaced.

Are fiveplexes and sixplexes exempt from Toronto development charges?

Toronto Council expanded its municipal relief in July 2025 so the second through sixth residential units in developments of up to six units on a single parcel can be reduced to $0. This does not mean five- and six-unit zoning is available on every Toronto property, and it does not automatically eliminate education DCs or other fees.

If I demolish a house and build a new one, do I get a development-charge credit?

Possibly. Toronto's DC framework provides redevelopment reductions, but the amount and eligibility depend on the lawful existing development, demolition and permit history and other facts. Homeowners should have Toronto Building confirm the credit before relying on it in a teardown budget.

When do I actually pay Toronto development charges on a custom home?

For non-rental residential development, Toronto says applicable DCs must be paid in full before occupancy is granted, effective November 3, 2025. That is different from the building-permit fee, which is handled as part of the permit process. If the development is legally classified as rental housing, a six-instalment framework generally applies instead.

Are Toronto's 40% and 60% development-charge reductions active in September 2026?

Toronto Council has adopted the bylaw framework and published the decreased amounts, but as of September 7, 2026 the City's main DC page still says the program is subject to a Transfer Payment Agreement with the Province and that more information will be provided once the agreement is received. Do not budget the reduced amount as guaranteed until the City confirms eligibility.

What is the 2026 education development charge in Toronto?

The Toronto Catholic District School Board's published residential Education Development Charge is $3,893 per dwelling unit from December 3, 2025 through December 2, 2026. It increases to $4,193 on December 3, 2026. Education DC exemptions and timing are governed separately from the City's municipal development-charge bylaw.

Does a garden suite have development charges in Toronto?

A garden suite can use Toronto's Development Charges Deferral Program for eligible rear-yard ancillary secondary dwelling units. The City says the charge can be deferred for 20 years, subject to program conditions and earlier repayment triggers. Toronto recommends applying as soon as the building-permit application is made and warns applicants not to pay the charge first if they intend to apply.

Is a building-permit fee the same as a development charge?

No. Building-permit fees pay for permit review and inspection and are calculated under a separate fee schedule. Development charges fund growth-related capital infrastructure and are governed by the Development Charges Act and Toronto's DC bylaw. A project can owe a permit fee while owing no City development charge.

Does the same Toronto development-charge rule apply in Mississauga, Oakville or Vaughan?

No. North York, Etobicoke and Scarborough are within the City of Toronto, but Mississauga, Oakville, Burlington, Vaughan, Richmond Hill and Pickering are separate municipalities with their own municipal and regional development-charge frameworks. Toronto's rates, exemptions and multiplex relief should never be applied to a property outside Toronto without checking the governing municipality.

Who decides the final development-charge amount for my Toronto building permit?

Toronto Building staff calculate and collect development charges using the plans and information submitted with building-permit and planning applications. If you disagree with a calculation, the City has a formal inquiry and statutory complaint process. Owners should first discuss the calculation with Toronto Building and keep documentation supporting any claimed exemption, reduction or credit.

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