Toronto's Development Charge Reduction Program reduces residential development charges by 40 to 60 percent from 2026 through 2029, funded by $1.5 billion secured under the Canada-Ontario Partnership to Build. The reduction lowers the DC bill on a new single or semi-detached home by roughly $83,000. Toronto's cut exceeds the program's minimum requirement of 30 to 50 percent, and reductions must be maintained for at least three years. Applications are reviewed on a rolling basis with priority for shovel-ready projects.
The largest development charge relief program in Toronto's history is now in effect. The City secured $1.5 billion under the Canada-Ontario Partnership to Build, and in exchange it is cutting residential development charges by 40 to 60 percent from 2026 through 2029. For a pro forma that penciled at last year's rates, this is a material change: roughly $83,000 off the DC bill for a new single or semi-detached home, with reductions across every residential unit type.
The federal government's Canada-Ontario Partnership to Build requires participating municipalities to reduce development charges by 30 to 50 percent and hold the reduction for at least three years. Toronto went further than the minimum:
| Program element | Detail |
|---|---|
| Reduction | 40 to 60 percent off residential development charges, varying by unit type |
| Duration | 2026 through 2029, a minimum of three years |
| Funding | $1.5 billion, federal and provincial, replacing forgone DC revenue |
| Savings example | Roughly $83,000 on a new single or semi-detached home |
| Access | Rolling review, priority for shovel-ready projects |
The funding backfills the City's DC revenue, which is what pays for housing-enabling infrastructure: transit capacity, water and wastewater, and road networks. That structure matters for developers because it means the reduction is not a Council policy that can be quietly reversed mid-cycle. It is a funding agreement with the federal and provincial governments that requires the reduction to hold.
Want the full approval and cost picture for a Toronto site, including current DC treatment? PreBuildIQ maps any address to its requirements in 60 seconds.
Check my site →The Reduction Program is one layer in a stack of DC relief now available in Toronto. The others are worth checking before you finalize a budget:
The reduction window runs through 2029, and applications are reviewed on a rolling basis with shovel-ready projects prioritized. A project that is still assembling its 1st submission package is not shovel-ready. The practical move is to compress the pre-development phase: confirm the approval path, commission the required studies early, and get through agency circulation while the reduction window is open. A rezoning that takes two years consumes most of the program's life before a permit is possible.
Reduction percentages vary by unit type and the program details are administered by the City. Confirm the current rate treatment for your specific unit mix with City of Toronto Finance before locking a pro forma.
Toronto is reducing residential development charges by 40 to 60 percent from 2026 through 2029 under its Development Charge Reduction Program, funded by $1.5 billion secured through the Canada-Ontario Partnership to Build. The reduction lowers the DC bill on a new single or semi-detached home by roughly $83,000, with reductions varying by unit type.
It is a federal-provincial program that funds municipalities to reduce development charges. Participating municipalities must cut DCs by 30 to 50 percent and maintain the reduction for at least three years, with program funding replacing the forgone revenue that pays for housing-enabling infrastructure like transit, water, and roads. Toronto's 40 to 60 percent reduction exceeds the minimum.
The reduction runs from 2026 through 2029, a minimum of three years, tied to the funding agreement with the federal and provincial governments. Projects should be modeled to reach permit issuance inside that window, since a multi-year rezoning can consume most of the program's life.
Developments with up to six units are exempt from City of Toronto development charges under exemptions Council adopted alongside the multiplex zoning permissions. Larger projects pay the reduced 40 to 60 percent rates, and purpose-built rental projects with at least 20 percent affordable units can defer DCs indefinitely.
Under Bill 17 changes to the Development Charges Act, DCs can be paid at occupancy rather than at building permit issuance. Combined with the Reduction Program, that means a smaller charge paid later, which improves carrying costs during construction. Confirm the current payment timing with the City before closing your construction financing.
PreBuildIQ maps any Toronto address to its approval path, required studies, and cost drivers in 60 seconds, so you can get shovel-ready inside the reduction window.
Run a site report →