A two-bedroom condo apartment in Toronto carries a development charge of $80,690 at the June 2025 rate. Council directed a 60% reduction for that unit for 2026 to 2029, which would bring the charge to $32,276 and save $48,414. A single-family house is charged $137,846 before the reduction.
What development charges are
The City collects this fee from builders to pay for growth: roads, water pipes, transit, parks and libraries. The developer pays when the building permit is issued. The cost then works its way into the price of new homes and rents.
How the rate is set
Toronto charges a fixed amount per unit, and the amount depends on the unit type. Houses and semi-detached homes pay the most. Apartments pay less, and studios and one-bedroom units pay the least. Rental units follow their own, lower schedule.
The 2025 rates
For non-rental units the rates are $137,846 for a single or semi, $113,938 for a multiple with two or more bedrooms, $57,153 for a smaller multiple, $80,690 for a larger apartment, $52,676 for a studio or one-bedroom apartment and $37,356 for a dwelling room.
The reduction for 2026 to 2029
Federal and provincial funding lets Toronto cut the charges by 40% to 60% for about three years. Studios and one-bedroom units get 40%. Larger apartments, multiples, houses and dwelling rooms get 60%. According to the City’s report, all of this depends on signing the funding agreement.
Rental housing
Purpose-built rentals pay less. A one-bedroom rental apartment is $33,497 and a two-bedroom rental is $48,299. The City’s report applies the same reduction percentages to them. Tick the rental box in the calculator to see this schedule.
What the calculator leaves out
Exemptions, credits for demolished units and non-residential space are not included. Indexing was removed for 2025 and 2026, so amounts have not risen with construction prices. A planner or lawyer can confirm the exact charge for a project.
Why buyers should care, with an example
Builders count these fees in their prices. A cut of $48,000 on a condo unit can lower what a developer needs to charge, though the market decides how much reaches buyers. Read the cost next to closing taxes in the closing costs calculator.
Take a studio condo in a new non-rental building. Its charge is $52,676 at the June 2025 rate, and with the 40% reduction it falls to $31,606, saving $21,070 per unit. Across a 300-unit tower of such studios, the difference passes $6 million.
Where to read more
The City publishes the rate schedule as a PDF and lists the bylaws on its development charges page. Council reports explain the reduction program. Confirm any figure with the City’s development charges staff before relying on it for a real project, since rules and dates can change.
Charges elsewhere in Ontario, and related tools
Other Ontario cities charge development charges at their own rates. Toronto’s are among the highest in the country for houses because of transit and servicing costs. When comparing projects across the region, look up each municipality’s schedule and effective date first.
See the transfer tax in the Toronto land transfer tax calculator. Check your yearly bill with the Toronto property tax calculator. Foreign buyer rules are in the Ontario NRST calculator.
Frequently asked questions
What is a development charge?
A fee builders pay the City to fund growth-related services.
How much is the charge for a house in Toronto?
$137,846 for a single or semi at the June 2025 rate.
How big is the 2026 reduction?
40% for studios and one-bedrooms and 60% for larger units, houses and dwelling rooms.
When is it paid?
When the building permit is issued.
Do rentals pay less?
Yes. Purpose-built rental units have a lower schedule.
Did rates rise with inflation?
No. Indexing was removed for 2025 and 2026.
Sources and updates
- City of Toronto: development charge rates, June 26, 2025
- City of Toronto: DC Reduction Program report
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.