Development charges (DCs)s for rental housing and institutional development, as defined by legislation, are to be paid in six equal instalments. The first payment is due upon occupancy and the remaining five payments are each due on the occupancy anniversary date in the following five years. Occupancy is the earlier of the date an occupancy permit is issued or the date the building is first occupied. The DC rate applying to non-rental residential developments can be determined by viewing the How do I know what rate applies to my project?
Upon occupancy, the City will issue a statement with the first instalment amount that is due and payable within 30 days, along with any accrued interest under s.26.1 of the DC Act. If the development was subject to planning application DC rates, any accrued interest under s.26.2 of the DC Act would also be payable. For the remaining instalments, a new payment statement will be issued annually on the anniversary of the occupancy date.
Applicants may request a statement from the City and pay DCs, along with any applicable accrued interest, before the date it is payable.
For instalment payment arrangements, payments may be submitted by:
| Mailed Payment | In-Person Payments |
|---|---|
| Submit cheque payments by mail.
City of Toronto |
In-person payments to be accepted at:
City of Toronto |
Interest accrues from the time of building permit issuance until the final payment is received. Pursuant to Bill 17 changes to the DC Act, interest under s.26.1 only accrues until November 3, 2025. After this date, interest under s.26.1 will longer accrue, even if payment is outstanding.
The applicable interest is the Canadian Bank Prime Rate plus three per cent or, if a letter of credit is provided to secure the amount of the development charge, the City’s Cost of Capital plus 0.5 per cent as set out in the interest section below
Instalments are subject to the maximum interest rate that can be charged under the Act. For these applications, interest will be capped so as not exceed the Canadian Bank Prime Rate plus one per cent fixed from the date of permit issuance.
Interest rates are updated quarterly:
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q3 | 4.73% | 7.95% |
| Q2 | 4.40% | 8.45% |
| Q1 | 4.47% | 9.45% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q4 | 4.29% | 9.95 |
| Q3 | 4.71% | 10.20% |
| Q2 | 4.88% | 10.20% |
| Q1 | 4.50% | 10.20% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q4 | 5.14% | 10.20% |
| Q3 | 4.88% | 9.70% |
| Q2 | 4.24% | 9.45% |
| Q1 | 4.35% | 8.45% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q4 | 4.70% | 7.70% |
| Q3 | 5.02% | 6.20% |
| Q2 | 3.62% | 5.45% |
| Q1 | 2.77% | 5.45% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q4 | 2.51% | 5.45% |
| Q3 | 2.69% | 5.45% |
| Q2 | 2.81% | 5.45% |
| Q1 | 2.01% | 5.45% |
| Quarter | Secured Rate | Unsecured Rate |
|---|---|---|
| Q4 | 1.52% | 7.45% |
| Q3 | 1.61% | 7.45% |
| Q2 | 2.25% | 8.95% |
| Q1 | 2.49% | 8.95% |
If an Agreement has been signed with the City to provide a Letter of Credit, the City must receive the original Letter of Credit 30 days prior to occupancy.
If a Letter of Credit is provided, interest will be applied daily at the City’s Cost of Capital plus 0.5 per cent. Cost of Capital Interest rates are updated quarterly.
Submit the Letter of Credit by mail to:
City of Toronto
Revenue Services
Attn: Planning and Policy Development
5100 Yonge St., Lower Level
Toronto, ON M2N 5V7
If any part of the development charge remains past due and unpaid, the overdue amount, including any interest, will be added to the property tax account in accordance with Section 32 of the Development Charges Act. Amounts added to the tax roll are subject to late tax bill payment collection processes.
The City takes action to collect overdue charges. The collection protocol for unpaid property taxes is followed in accordance with Chapter 767 of the Toronto Municipal Code. Penalty and interest rates are set by City by-laws, pursuant to the City of Toronto Act, 2006.
If there is a Letter of Credit in place, any part of the development charge that remains past due and unpaid, including interest, will be drawn from the Letter of Credit. Any overdue amount not covered by the Letter of Credit will be transferred to the property tax account in accordance with Section 32 of the Development Charges Act. Amounts added to the tax roll are subject to late tax collection processes.