Development charges are fees imposed on land development and redevelopment projects to help pay for the capital costs of infrastructure that is needed to service new development.
You may be required to pay development charges for land development or redevelopment projects, if you are:
For a fulsome list of exemptions, reference should be made to the bylaw.
View the City’s current development charge rates.
Development charges are calculated at the rate in effect at the time of building permit issuance for all development with planning applications made prior to January 1, 2020.
Effective January 1, 2020, changes were made to the calculation of development charges in accordance with Bill 108, the More Homes More Choice Act. For developments proceeding through site plan or rezoning bylaw amendment application submitted after January 1, 2020, development charge rates are “frozen” in accordance with the development charges bylaw in effect on the date a complete application is received. This rate freeze expires two years after the approval of the planning application.
Interest will be applied to the development charges payable from the time of the complete planning application submission date to the date of building permit issuance. The City’s interest rate is equal to the maximum interest rate set out in the Development Charges Act (i.e. prime plus 1 per cent).
The development charge rates in the bylaw are adjusted annually beginning on May 1, 2023 in accordance with the most recent annual change to the Non-Residential Building Construction Price Index (Toronto). The City will not be adjusting the rates on November 1, 2022, which was the index date in the 2018 development charges bylaw.
Development charges are payable and collected on the date that a building permit is issued in relation to a building or structure on the land to which the development charge applies.
Where a development charge applies to land in relation to which a building permit is required, no building permit will be issued until the development charge has been paid in full.
In some cases, the legislation or agreements may change the payment timing. Development charges for rental, institutional and non-profit housing projects are deferred to occupancy and payable in instalments with interest under section 26.1 of the Development Charges Act and are not required to be paid as a condition of building permit issuance. See Deferred Development Charges for more information.
View the City’s process for responding to concerns about the calculation of the applicable development charge.
Development charges help pay for growth-related capital costs for the following municipal services:
Exemptions available through the Development Charges Act and the Ministry Of Training, Colleges and Universities Act include:
Exemptions available through bylaw include:
The owner or applicant is required to provide evidence to the satisfaction of the City that the owner or applicant is entitled to any exemption from the payment of development charges. Consult the bylaw and the legislation for the full list of exemptions.
The Treasurer’s Annual Statement, identifying opening and closing balances and development charges reserve fund transactions during the year, may be viewed by the public at toronto.ca or in the offices of the City Clerk at 100 Queen Street West, Toronto, Ontario, during regular business hours.
The City of Toronto collects education development charges on behalf of the Toronto Catholic District School Board (TCDSB), as required by the Education Act. The TCDSB is responsible for setting the education development charge rates and applicable policies. For more information, please review the Education Development Charges Bylaw at tcdsb.org and the City’s Education Development Charges site.