Development Charges in Markham: 2026 Rates, Reductions, and Process

Quick Answer

Development charges in Markham are assessed by the City of Markham, York Region, and school boards at building permit. The approximate all-in total (all authorities) is ~$121,500 for a large apartment and ~$155,000 for a single/semi-detached home. York Region reduced its DC by 2 to 9% in May 2026.

Development charges in Markham are collected at building permit by the City of Markham, York Region, and school boards. Markham is a lower-tier municipality within York Region, and York Region charges a significant additional DC for regional infrastructure including roads, wastewater, and transit. The City's own DC funds local parks, community centres, libraries, and local roads. Rates are confirmed at the time of building permit application.

Markham adopted Comprehensive Zoning By-law 2024-19 in mid-2024. DC rates are tied to building permit issuance, not planning approval. A project that obtained ZBA approval in 2024 under a lower DC environment but delays Building Permit issuance to 2026 will be assessed at current rates, which may differ materially from rates at the time of planning approval. All applications must be submitted through Markham's ePLAN portal.

2026 Development Charge Rates — Markham

Unit type 2026 base rate 2026 incentive / reduction Rate schedule
Large apartment (≥700 sq ft) ~$121,500 (all auth.) York Region reduced 2–9% (May 2026) Indexed annually
Single & semi-detached ~$155,000 (all auth.) York Region reduced 2–9% (May 2026) Indexed annually
Row dwelling ~$140,000 (all auth.) York Region reduced 2–9% (May 2026) Indexed annually

Rates are approximate all-in totals (City of Markham + York Region + Education). York Region updated its DC by-law in May 2026 with reductions of 2 to 9% for residential development. Confirm current rates with the City of Markham's Development Finance team before budgeting.

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2026 DC Reduction Program — Markham

York Region 2026 DC By-law Update. York Region adopted a new Development Charges By-law in May 2026 with rate decreases of 2 to 9% across all residential development classes. This reduction applies to the York Region portion of the DC in Markham and all other York Region lower-tier municipalities. The City of Markham has not announced a separate city-level DC reduction program.

For current program eligibility, rate schedules, and payment options, visit: Markham Development Charges.

How Development Charges Work: Step by Step

Development charges in Ontario are triggered by new development or redevelopment that increases the demand for municipal services. They are assessed at building permit issuance and must be paid before the permit is released.

1
Identify your DC authorities

Confirm which authorities collect DCs for your site: city/town, upper-tier Region, school boards, GO Transit. In a two-tier municipality, Regional DCs are a separate charge from city DCs and are often the larger component.

2
Check for 2026 programs and exemptions

Confirm whether any active DC reduction programs or exemptions apply to your project type, unit mix, or unit size. Eligibility conditions vary by municipality and program. Many programs are time-limited and require permits by a specific date.

3
Calculate the all-in DC at current rates

Obtain the current rate schedules from each collecting authority. Multiply by unit count and unit type. Account for indexing dates: most Ontario municipalities index DCs on February 1 and August 1. If your permit date crosses an indexing date, budget for the higher rate.

4
Factor DCs into the pro forma at site acquisition

DC rates at building permit may be higher than rates at planning approval due to indexing. Include DCs at the current rate (conservative) in the pro forma at site analysis, not the rate at planning approval. Use the delta between current and projected rates as a sensitivity variable.

5
Pay DCs at building permit issuance

DCs are paid in full at building permit, or under an instalment arrangement where available. Some municipalities offer DC deferral programs for affordable or purpose-built rental housing. Confirm with each collecting authority whether deferral applies to your project type.

Planning Note

A purpose-built rental developer in the Unionville area obtained ZBA approval in 2024 with a DC budget based on rates at that time. Building permit was delayed to 2026 due to financing. By permit issuance, the City of Markham DC had been indexed upward by approximately 6%, adding an unexpected cost. The developer had not accounted for DC indexing in the two-year gap between ZBA approval and permit, resulting in a budget variance at a late stage.

Markham vs. Adjacent Municipalities — DC Comparison

Development charge rates vary significantly across GTA municipalities depending on the number of collecting authorities, whether the municipality is single-tier or two-tier, and active 2026 reduction programs. The table below compares approximate all-in DC rates across the 8 GTA municipalities covered by PreBuildIQ. Markham's all-in DC is among the highest in the GTA for single/semi-detached. The York Region May 2026 reduction (2-9%) provided modest relief but Markham's rates remain materially above Toronto's post-DCRP rates.

Municipality Apt. DC (all auth.) Single/semi DC (all auth.) 2026 program Who collects
Toronto ~$32K–$48K (post-DCRP) ~$52K (post-DCRP) 40–60% off (2026–2029) City only (single-tier)
Mississauga ~$19K city + Peel Region N/A city rate quoted 50% city DC off; 100% rental City + Peel Region + Edu
Brampton $52K–$92K (all-in) $134K (all-in) Rental: 50–100% off (city portion) All authorities combined
Vaughan $0 city + York Region $0 city + York Region City = $0 thru Oct 2027 City + York Region + Edu
Markham ~$121K (all auth.) ~$155K (all auth.) York Region −2–9% City + York Region + Edu
Richmond Hill ~$105K–$115K (all auth.) ~$145K+ (all auth.) York Region −2–9% City + York Region + Edu
Oakville ~$65K–$75K (all auth.) ~$85K–$95K (all auth.) Bill 23: −20% (Town portion) Town + Halton Region + Edu
Burlington ~$8.7K city + Halton Region ~$21.6K city + Halton Region City freeze/reduction City + Halton Region + Edu

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Frequently Asked Questions

Development charges in Markham are one-time fees paid at the time of building permit issuance. They are authorized under Ontario's Development Charges Act, 1997 and are designed to ensure that new development pays for the infrastructure it requires, including roads, water supply, wastewater treatment, transit, parks, and community facilities. DCs are separate from planning application fees, permit fees, and cash-in-lieu of parkland obligations.

Development charges in Markham are paid at building permit issuance. The rate that applies is the rate in effect on the date the building permit is issued. A project that obtained ZBA or Site Plan approval under an earlier, lower rate schedule will be assessed at the rate in effect at permit date if that date is later. This is a common source of budget variance when there is a gap between planning approval and permit application.

Development charges in Markham are collected separately by each authority at building permit: City of Markham, York Region, Education (school boards). Each authority's charge is based on its own DC by-law and rate schedule. The total DC paid at permit is the sum of all applicable charges. Not all authorities apply to all projects; for example, Education DCs vary by school board based on the project's location and unit mix.

York Region adopted a new Development Charges By-law in May 2026 with rate decreases of 2 to 9% across all residential development classes. This reduction applies to the York Region portion of the DC in Markham and all other York Region lower-tier municipalities. The City of Markham has not announced a separate city-level DC reduction program. For the most current information on eligibility conditions and application requirements, visit the Markham development charges page or contact the applicable authority directly.

Development charges in Markham affect a project's feasibility in two ways: as a direct cost at building permit, and as a timing risk if there is a gap between planning approval and permit issuance. DCs are not negotiable and are indexed twice yearly (February 1 and August 1) in most Ontario municipalities. A project delayed between ZBA approval and building permit application will be assessed at whatever rate is current at permit, regardless of what was budgeted at planning stage. Building the DC cost into the pro forma at the earliest stage of site analysis prevents budget surprises at permit.

About this data: DC rates sourced from official municipal and regional rate schedules, verified July 2026. Rates are indexed twice yearly (February 1 and August 1) in most Ontario municipalities and change without notice. All figures are approximate. Confirm current rates with the applicable collecting authority before budgeting. PreBuildIQ is not responsible for reliance on rates that have since been updated.

Know Your Full Markham Pre-Development Cost Before Filing

Development charges are one component of your total pre-development cost. A single missing study at 1st submission resets the statutory review clock and adds months of carrying cost at $43,000 per month on a stalled GTA project. Enter your Markham address and PreBuildIQ generates your complete required-study, agency, and approval list in 60 seconds.

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