Development charges and City fees on a Toronto multiplex
This guide answers which units in a new Toronto multiplex pay City development charges, and what the other City charges on a small project are. Under Municipal Code section 415-6, as amended on July 24, 2025, the second to fourth unit on a parcel of up to six units pays nothing and the fifth and sixth are reduced to zero dollars. The first unit pays at the rate for its type, less any credit for a house torn down. The guide also covers parkland and school charges, permit and review fees, and when each is paid.
Written by Anthony Palleschi · Updated November 1, 2026 · 7 min read
Key takeaways
- On a parcel of up to six units, units 2 to 4 are exempt from City development charges and units 5 and 6 are reduced to $0.
- The rate sheet in force is dated June 26, 2025, and Council paused indexing in 2025 and 2026; the next adjustment is May 1, 2027.
- The first unit pays at its unit-type rate, less a credit when a demolition permit was issued within 60 months before the permit application.
- Units 2 to 6 are also exempt from parkland cash-in-lieu, or up to 7 with a garden or laneway suite.
- The school board charge is $3,893 per unit until December 2, 2026, then $4,193.
- Non-rental development charges have been due in full before occupancy since November 3, 2025.
What this guide covers
Development charges are fees the City collects on new homes to help pay for roads, transit, water and sewer pipes, community centres and emergency services. On a small multiplex in Toronto most units now pay nothing, and a builder who relies on an older summary can count the wrong number. This guide sets out which units pay, at what rate, when the money is due, and the other City fees that land on a small project.
The figures come from the Municipal Code as consolidated to July 30, 2026, the City's rate sheet and fee pages, and two Ontario statutes, all read on November 1, 2026. The City's own development charges page says its web information is a guide only and asks owners to check the by-law or ask Toronto Building for a specific project. Do that before you rely on any figure here. The developer hub has the full process from site search to permit.
Do multiplexes pay development charges in Toronto?
Most units do not. The rule is in Municipal Code Chapter 415, section 415-6 A. Part (1) exempts anything the Development Charges Act already exempts. Part (2) goes further. Where a unit is not already exempt, the City charges nothing for the second, third or fourth residential unit, and reduces the charge for the fifth or sixth unit to zero dollars, provided no more than six units are built on the parcel. A garden or laneway suite covered by a deferral agreement under the City's Laneway and Garden Suite Development Charges Deferral Program is left out of that count.
The rule has changed twice in recent years. By-law 650-2025, enacted June 26, 2025, wrote the exemption for the second to fourth unit on a parcel of no more than four units. Four weeks later, By-law 845-2025, enacted July 24, 2025, replaced that text with the six-unit version above. The City's Considerations When Building Multiplexes page, last changed June 30, 2025, still describes the four-unit version. The Municipal Code is the rule.
| Unit on the parcel | City development charge | Condition |
|---|---|---|
| Unit 1 | Charged at the rate for its unit type, less any redevelopment credit | Unless the Development Charges Act exempts it |
| Units 2, 3 and 4 | Not imposed | No more than 6 units on the parcel |
| Units 5 and 6 | Reduced to $0 | No more than 6 units on the parcel |
| Garden or laneway suite under a deferral agreement | Deferred under the agreement | Left out of the unit count |
| Unit 7 and up on one parcel | The six-unit relief no longer applies | Ask Toronto Building how the parcel is charged |
The Development Charges Act has its own exemptions that sit under part (1). Subsections 2(3.2) and 2(3.3) exempt a second and third unit in an existing or a new detached house, semi-detached house or rowhouse, and one unit in a building ancillary to it, within the limits each subsection sets. For a multiplex the City's six-unit rule covers more units, but a builder converting a house should read both.
What does the first unit pay?
The first unit pays at the rate for its type on the City's rate sheet. The type depends on how the unit is reached. Section 415-1 defines an apartment unit as one accessed through a common entrance from the street and an interior enclosed corridor, in a building with three or more units reached that way. A multiple dwelling unit is any other unit that is neither a single, a semi nor an apartment, including units in a duplex, triplex or row dwelling. Bedroom count matters too.
| Unit type | Charge per unit |
|---|---|
| Single or semi-detached | $137,846 |
| Multiple, 2 or more bedrooms | $113,938 |
| Multiple, 1 bedroom or bachelor | $57,153 |
| Apartment, 2 or more bedrooms | $80,690 |
| Apartment, 1 bedroom or bachelor | $52,676 |
| Dwelling room | $37,356 |
The City's rates page, updated July 20, 2026, lists this June 26, 2025 sheet as current. By-law 594-2025 removed the annual indexing for 2025 and 2026, so the next adjustment is due on May 1, 2027. The same sheet has lower rates for purpose-built rental units as the by-law defines them. If you plan to rent, read the rental table and the definition before you price the first unit.
A credit can bring the first unit's charge down. Under section 415-7 C, when a demolition permit was issued within the 60 months before a complete building permit application, the charge is reduced by the rate for each unit demolished, by the type of unit demolished. A builder who tears down a detached house and builds a multiplex can therefore set the single-detached rate against the charge on the new building. The owner carries the onus to prove an exemption or credit, under section 415-6 C. Keep the demolition permit and records of the old house.
When are development charges paid?
The timing changed on November 3, 2025. The City's page on non-rental residential development charges says that since that date, charges on non-rental homes such as freehold units and condominiums must be paid in full before the occupancy permit is issued, after the Province's Bill 17 changed the Development Charges Act. Before that, they were due at the building permit. Rental housing pays in instalments, with the first payment due at occupancy. Toronto Building accepts development charges, parkland payments and education charges by electronic funds transfer or wire only.
The Development Charges Reduction Program
By-law 1261-2026, added to the Municipal Code on July 30, 2026, created Schedule D, a set of time-limited decreased amounts for residential development charges. It depends on a transfer payment agreement between the City and the Province or the federal government. The City's development charges page says more information will be posted once that agreement is received.
For a building on its own foundation, Schedule D sets four main conditions. The agreement must be fully signed. No building permit may have been issued for the development before March 30, 2026, unless every such permit was revoked before that date. The first building permit must be issued between March 30, 2026 and three years after the agreement takes effect. An above-grade permit must follow by the later of those three years and 24 months after the first permit, and must not be revoked before occupancy. The decreased amounts are confirmed only at occupancy. For a multiplex where units 2 to 6 already pay nothing, the program can only affect the first unit, so treat it as possible relief and leave it out of your base numbers until the agreement is signed.
Parkland cash-in-lieu
Parkland dedication is the City's charge in land or cash for new parks. Section 415-30 A(16), as amended by By-law 845-2025, exempts the second to sixth unit built inside the main residential building, and one unit built ancillary to it, such as a garden or laneway suite. The exemption applies to developments of no more than six units on a parcel, or seven where one is a garden or laneway suite.
Education development charge and community benefits charge
The City collects an education development charge for the Toronto Catholic District School Board, which sets the rate and its own exemptions. The City's page lists $3,893 per dwelling unit from December 3, 2025 to December 2, 2026, and $4,193 from December 3, 2026 to December 2, 2027. Ask the board whether any of its exemptions apply to your units.
A community benefits charge is a separate City charge on larger buildings. Subsection 37(4) of the Planning Act bars it on buildings with fewer than five storeys at or above ground and on buildings with fewer than 10 residential units. Multiplexes fall under both lines. A six-storey Major Streets building of 10 or more units does not, as the Major Streets guide notes.
Building permit and review fees
Toronto Building's fees took effect on January 1, 2026. The permit fee is a rate per square metre times the floor area of the work, plus a fee for each new unit.
| Fee | Amount |
|---|---|
| Building permit, houses, duplexes and other multiple unit residential buildings | $18.56 per square metre |
| Residential unit fee | $56.33 per new unit |
| Minimum permit fee | $214.79 |
| Demolition permit | $0.18 per square metre |
| Zoning Applicable Law Certificate, new house, additions or conversions | $644.38 |
| Zoning Applicable Law Certificate, other new building of 300 square metres or less | $888.14 |
| Zoning Applicable Law Certificate, other new building over 300 square metres | $1,863.82 |
| Zoning certificate with the permit | 25 percent of the building permit fee |
Committee of Adjustment fees, if your design needs variances or a lot split, are listed in the severance and minor variance guide. Tree permit fees changed on September 1, 2026 with the new tree by-laws, and the site screening guide covers when a tree permit is needed.
How to use these numbers
My numbers are a sales representative's check. Take the final numbers, the tax effects and the legal terms to your own accountant and lawyer, and confirm the zoning and the charges for your permit with the City of Toronto. When I check a builder's numbers, I list each unit, its type and bedroom count, mark which units the six-unit rule covers, apply the demolition credit if the timing fits, and add the education charge and permit fees. The feasibility guide puts those costs next to rent, tax and financing.
Questions to ask before you commit
- How many units will sit on the parcel, counting any garden or laneway suite?
- Will the first unit be charged as a single, a multiple or an apartment, and with how many bedrooms?
- Was a demolition permit for the old house issued within 60 months of the permit application?
- Will the units be sold or rented, and does that change when the charges are due?
- Has the Development Charges Reduction Program agreement been signed, and does your permit date fit its window?
- Which school board exemptions, if any, apply?
Owners who want to know how these costs shape a builder's offer can read how builders price land. For the wider story of why the City changed these rules, see my post on Missing Middle Housing. Which units in your plan pay, and when does each payment fall due?
Frequently asked questions
Which units in a Toronto multiplex are exempt from development charges?
In a Toronto multiplex, the second, third and fourth units are exempt from City development charges, and the fifth and sixth are reduced to zero dollars, as long as the parcel holds no more than six units. That rule is in Municipal Code section 415-6 A(2), as amended by By-law 845-2025 on July 24, 2025. The first unit still pays unless another exemption or credit applies.
Is a sixplex exempt from development charges in Toronto?
A Toronto sixplex pays no City development charge on its second to sixth units, under Municipal Code section 415-6 A(2) as amended by By-law 845-2025 on July 24, 2025. Units 2 to 4 are exempt and units 5 and 6 are reduced to zero dollars. The relief applies only where the parcel holds no more than six units, so a seventh unit changes the count.
Does the first unit in a new Toronto multiplex pay development charges?
The first unit in a new Toronto multiplex pays development charges at the rate for its unit type, unless an exemption applies. Municipal Code section 415-7 C reduces the charge by the rate for each unit demolished on the same land, where the demolition permit was issued within 60 months before a complete building permit application. Ask Toronto Building to confirm the charge for your permit.
What are Toronto's development charge rates for a new home in 2026?
Toronto's development charge rates for a new non-rental home in 2026 are those on the rate sheet effective June 26, 2025: $137,846 for a single or semi, $113,938 for a multiple unit with two or more bedrooms, and $80,690 for an apartment unit with two or more bedrooms. By-law 594-2025 removed indexing in 2025 and 2026, with the next adjustment on May 1, 2027.
When are development charges paid on a non-rental Toronto multiplex?
Development charges on a non-rental Toronto multiplex are paid in full before the occupancy permit is issued. The City's page on non-rental residential development charges says this applies to permits since November 3, 2025, after Ontario's Bill 17 changed the Development Charges Act. Before that date, non-rental charges were due when the building permit was issued. Rental buildings pay in instalments, with the first at occupancy.
Does a Toronto multiplex pay parkland cash-in-lieu?
A Toronto multiplex pays no parkland cash-in-lieu on its second to sixth units, under Municipal Code section 415-30 A(16) as amended by By-law 845-2025 on July 24, 2025. The exemption also covers one garden or laneway suite. It applies to developments of no more than six units on a parcel, or seven where one of them is a garden or laneway suite.
What is the education development charge on a new unit in Toronto?
The education development charge on a new unit in Toronto is $3,893 per dwelling unit from December 3, 2025 to December 2, 2026, rising to $4,193 on December 3, 2026, according to the City's Education Development Charges page. The Toronto Catholic District School Board sets the charge and its exemptions, and the City collects it on the board's behalf.
How much is a building permit for a multiplex in Toronto in 2026?
A building permit for a multiplex in Toronto in 2026 costs $18.56 per square metre of floor area, plus a residential unit fee of $56.33 for each new unit, under Toronto Building's fees effective January 1, 2026. The minimum fee is $214.79. A zoning certificate costs 25 percent of the building permit fee, and demolition is charged at $0.18 per square metre.
What is Toronto's Development Charges Reduction Program?
Toronto's Development Charges Reduction Program is a time-limited decrease in residential development charges, added to the Municipal Code as Schedule D by By-law 1261-2026 on July 30, 2026. It applies only after a transfer payment agreement with the Province is signed, and the first building permit must be issued between March 30, 2026 and three years after that agreement takes effect.
Does a garden suite count toward the six-unit limit for development charges?
A garden or laneway suite does not count toward the six-unit limit for Toronto's multiplex development charge relief if it is covered by a deferral agreement under the City's Laneway and Garden Suite Development Charges Deferral Program. Municipal Code section 415-6 A(2), as amended by By-law 845-2025 on July 24, 2025, leaves such a suite out of the unit count on the parcel.
Does a small Toronto multiplex pay a community benefits charge?
A small Toronto multiplex pays no community benefits charge, because subsection 37(4) of Ontario's Planning Act excludes buildings with fewer than five storeys at or above ground and buildings with fewer than 10 residential units. The charge is for larger projects. A six-storey building of 10 or more units on a Major Street would fall outside both exclusions.
How does Toronto decide if a multiplex unit is an apartment or a multiple for development charges?
Toronto decides whether a multiplex unit is an apartment or a multiple for development charges by how the unit is reached. Municipal Code section 415-1 defines an apartment unit as one reached through a common entrance from the street and an interior enclosed corridor, in a building with three or more such units. Other units, including those in a duplex or triplex, count as multiple dwelling units, which carry higher rates on the June 26, 2025 rate sheet.
Sources
- Toronto Municipal Code Chapter 415, Development of Land. City of Toronto. Consolidated to July 30, 2026. Accessed November 1, 2026.
- By-law 845-2025, amending sections 415-6 A and 415-30 A. City of Toronto. Enacted July 24, 2025. Accessed November 1, 2026.
- By-law 594-2025, development charge indexing. City of Toronto. Enacted June 26, 2025. Accessed November 1, 2026.
- Development Charges Bylaws, Rates and Study. City of Toronto. Updated July 20, 2026. Accessed November 1, 2026.
- Residential Development Charges Rates, effective June 26, 2025. City of Toronto. Rates effective June 26, 2025. Accessed November 1, 2026.
- Development Charges. City of Toronto. Accessed November 1, 2026.
- Non-rental Residential Development Charges. City of Toronto. Updated November 14, 2025. Accessed November 1, 2026.
- Education Development Charges. City of Toronto. Updated October 6, 2025. Accessed November 1, 2026.
- Building Permit Fees. City of Toronto, Toronto Building. Updated June 19, 2026. Accessed November 1, 2026.
- Development Charges Act, 1997, S.O. 1997, c. 27. Government of Ontario, e-Laws. Current version from June 2, 2026. Accessed November 1, 2026.
- Planning Act, R.S.O. 1990, c. P.13. Government of Ontario, e-Laws. Current version from July 1, 2026. Accessed November 1, 2026.
- Considerations When Building Multiplexes. City of Toronto. Updated June 30, 2025. Accessed November 1, 2026.
Planning and development potential is property-specific and subject to zoning, approvals, site conditions, municipal review and other due diligence. This guide gives general information. For legal, tax or financial advice, ask your own lawyer and accountant.