Development Charges | City of Hamilton

Development Charges By-law Update

The current Consolidated Development Charges By-law is in effect until August 31, 2025.

An amended By-law with updated exemptions will be posted and shared prior to its effective date of September 1, 2025.

Consolidated Development Charge By-Law 24-072

Development Charges (DCs) are one-time fees collected from developers when a building permit is issued. These fees help pay for the infrastructure needed to support growth, including roads, transit, water and sewer infrastructure, fire and police services.

Why Development Charges Exist

Development Charges help ensure the cost of new infrastructure needed for growth is not passed on to existing local property taxpayers. Without DCs, those costs would lead to higher property taxes and user fees. Most Ontario municipalities use Development Charges.

How Development Charges are Determined

Under the Development Charges Act, 1997 City Council can pass a by-law to impose Development Charges. This requires that a DC Background Study be completed, including:

Forecasts of the type, amount, and location of development and population
A review of past capital service levels
A review of future capital projects to support the expected new development.

The Development Charges By-law also allows for annual DC fee adjustments. The Act and the By-law include exemptions for certain types of development.

Treasurer’s Statement

The City Treasurer prepares an annual statement regarding the use of development charges funds and sets out the balance in each of the development charges reserves

Learn More About

Development Charge Rates

Rates and Information

Deferral Program

Education DC

Development Charges Rates (Information Pamphlets)

Development Charges By-law & Background Study

Guide to Development Charge Information Pamphlets

Effective January, 1, 2020 the Province amended the Development Charges Act, 1997 and the timing of when development charges are calculated. Refer to this table for guidance regarding what DC pamphlet will apply for which type of DC.

Download 2025 Development Charges Interest Calculator Tool(File, 321.32 KB)

Situation	City DC, GO DC, Dun/Wat SAC	Education DC
Complete application for site plan or zoning amendment was made prior to January 1, 2020	DC Pamphlet in effect at permit issuance **	DC Pamphlet in effect at permit issuance
Complete application for site plan or zoning amendment was made on or after January 1, 2020 and building permit is issued within 2 years of site plan approval	DC Pamphlet in effect at the later application date plus interest using the tool above to permit issuance	DC Pamphlet in effect at permit issuance
Complete application for site plan or zoning amendment was made on or after January 1, 2020 but the associated building permit is issued more than 2 years after site plan approval	DC Pamphlet in effect at permit issuance **	DC Pamphlet in effect at permit issuance
The development is not subject to a site plan or zoning amendment application	DC Pamphlet in effect at permit issuance **	DC Pamphlet in effect at permit issuance

** The City offers a transition policy based on complete building permit application date for 6 months following a DC rate increase which may permit the pamphlet in effect at building permit application to be applied.

Rental Housing and Institutional Development Installments

Rental Housing and Institutional Developments will pay in 6 equal annual payments commencing at occupancy.

Complete Development Charge Instalment Declaration Form(PDF, 355.86 KB)

The City accepts industrial DC Deferral applications. Currently, the City is accepting a limited number of non-industrial DC Deferral applications. Unless otherwise stated, the DC Deferral program has available capacity and is continuing to accept applications. Allocations will be assigned on a first come, first serve basis until the program has reached capacity.

Eligible non-industrial developments

Non-residential
High density residential
Mixed-use

Not eligible to apply

Low and medium density residential developments
Developments located within the Downtown Hamilton Community Improvement Project Area (CIPA)

A minimum Development Charge of $50,000 is required in order to apply.

Complete Deferral Program Application Form(PDF, 119.48 KB)

Applications may be emailed to [email protected] with the corresponding $780 application fee delivered, in person, within 2 business days. Application fees will be returned for any applications that are submitted after the available funds have been allocated.

Section 257.54(1) of the Education Act enables a district school board to pass by-laws for the imposition of education development charges against land if there is residential development in its area of jurisdiction that would increase education land costs.

Both school boards in Hamilton have determined that the residential development of land to which the by-law applies increase education land costs.

Education Board Development Charges

Date modified

August 07, 2025