On September 3, 2026, the Governments of Canada and Ontario announced up to $401.4 million for Mississauga through the Development Charge Reduction Program, part of the Canada-Ontario Partnership to Build. In return, Mississauga is reducing residential development charges by 50 percent for the period January 29, 2025 to March 31, 2029, and eliminating development charges entirely on one-bedroom-plus-den, two-bedroom, and three-bedroom rental units through March 31, 2029. The funding backfills the forgone charges so the city can still pay for growth infrastructure. Governments estimate the combination of the DC reduction (up to $36,140 per unit) and federal HST relief (up to $130,000) can save up to $166,140 on a new home, and that the measures help unlock roughly 90,000 homes in Mississauga. To qualify for the funding, the city contributes at least 10 percent of project costs and must hold a reduction of 30 to 50 percent for at least three years.
Mississauga just became the second GTA city, after Toronto, to convert a provincial-federal funding commitment into a hard cut to development charges. On September 3, 2026, Canada and Ontario committed up to $401.4 million to Mississauga so the city can hold residential development charges down without starving the reserve funds that pay for growth infrastructure. For a builder with land in Mississauga, this is the single largest change to the cost side of a pro forma in years.
| Element | Detail |
|---|---|
| Federal-provincial funding | Up to $401.4 million through the Development Charge Reduction Program |
| Residential DC reduction | 50 percent, for the period January 29, 2025 to March 31, 2029 |
| Rental DC elimination | Full elimination on one-bedroom-plus-den, two-bedroom, and three-bedroom rental units through March 31, 2029 |
| DC saving per unit | Up to $36,140 |
| Federal HST relief per home | Up to $130,000 |
| Combined potential saving per home | Up to $166,140 |
| Homes the measures help unlock | Roughly 90,000 |
The structure matters as much as the headline number. Development charges fund the water, wastewater, roads, and community infrastructure that growth requires, so a city cannot simply stop charging them without a hole in its capital budget. The $401.4 million backfills that hole, which is why Mississauga can cut the charge by half and still service new development. The program requires the city to contribute at least 10 percent of project costs and to hold a reduction of 30 to 50 percent for at least three years, so the cut is durable rather than a one-year gesture.
Holding land in Mississauga? PreBuildIQ maps any address to its approval bodies, required studies, and applicable charges in 60 seconds.
Check my site →The two savings streams stack, but they reach different products:
The 50 percent cut is on the City of Mississauga portion of development charges. Region of Peel and education development charges are separate and are not the subject of this announcement. Confirm the full stack, city plus Region plus education, for your specific unit type and building permit date before you re-cut a pro forma.
The eligibility window closes March 31, 2029, and the value is tied to when the charge is payable, typically at building permit. That makes the approvals clock the binding constraint. A project that still needs a rezoning or site plan approval, then a building permit, is working against an 18 to 24 month GTA approval timeline inside a window that is already counting down. The developers who capture the full saving are the ones whose entitlements are close to complete now, not the ones starting a first submission.
Mississauga is reducing residential development charges by 50 percent for the period January 29, 2025 to March 31, 2029, and eliminating them entirely on one-bedroom-plus-den, two-bedroom, and three-bedroom rental units through March 31, 2029. The 50 percent cut is worth up to $36,140 per unit against the city portion of the charge.
The up-to-$401.4 million comes from the Governments of Canada and Ontario through the Development Charge Reduction Program, part of the Canada-Ontario Partnership to Build. It backfills the development charge revenue Mississauga forgoes by cutting the charge, so the city can still fund the water, wastewater, roads, and community infrastructure that new growth requires.
No. The 50 percent reduction applies to the City of Mississauga portion of development charges. Region of Peel development charges and education development charges are separate and are not the subject of this announcement. Confirm the full charge stack for your unit type before relying on any figure.
The governments estimate that combining the development charge reduction of up to $36,140 with federal HST relief of up to $130,000 can save up to $166,140 on a new home. The DC reduction is a developer-side saving on the cost of building, while the HST relief is a buyer-side saving on eligible new homes.
The reduction covers the period to March 31, 2029. Because development charges are typically payable at building permit, the practical deadline is getting a building permit within that window, which for projects still needing planning approvals means starting the approval process well before the window closes.
PreBuildIQ maps any Mississauga address to its approval bodies, required studies, and current zoning in 60 seconds, so you can reach a building permit inside the savings window.
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