Development Charges

Payment of development charges may be required for residential and non-residential development when:

• Constructing a new building
• Adding to or altering an existing building that increases the floor area or number of units
• Redeveloping a property or properties, resulting in a change of use.

Please refer to the Development Charges By-law 2022-068 (pdf) for more information.

Development charges are based on the number and type of dwelling units. Dwelling units are defined in Development Charges By-law 2022-068 (pdf).

Rental housing developments may be eligible for discounts ranging between 15 to 25 per cent based on the number of bedrooms in a rental residential unit per section 26.2 of the DC Act. 

Halton Region development charges are based on the type of dwelling unit and location of your development. There are separate rates for developments in the built boundary urban and rural areas and the greenfield urban, DC recovery and rural areas. 

In addition to current regional residential development charges, a Front-Ending Recovery Payment (FERP) and DC Recovery charge may apply to your development. More information can be found on the Halton Region website.

Use the Development Charges map to determine where your development is located. Identify the rate schedule by searching the address and checking if the property is built boundary or greenfield.

• Development charges are based on the gross/total floor area of the building
• In the case of non-residential developments or redevelopments, a Regional, Local, Municipal and School Boards Non-Residential Development Charges Information form (pdf) should be completed at the time of the building permit application. The form helps with finding the specific development charges that may apply based on the determinations of the town, Halton Region and the area school boards.
• Halton Region has provided a list of definitions of terms used on the Non-Residential DC Information Form (pdf)
• Non-residential development is categorized as retail or non-retail for regional development charges. Please visit the Halton Region site for more information
• Halton Region development charges are based on the location of your development. There are separate rates for developments in the built boundary urban and rural areas and the greenfield urban, DC recovery and rural areas.

Use the Development Charges map to determine where your development is located to check the rate schedule by searching the address and identify if the property is built boundary or greenfield.

The Corporation of the Town of Oakville collects development charges under the authority of the Development Charges Act, 1997 (DCA) and the Town Development Charges By-law. 

Development charges shall be collected in a financially sustainable manner in order to fund growth related capital costs and deliver complete communities.

To learn more about this, review our Development Charges Interest Policy.

• January 1, 2020: 3.95 per cent
• March 5, 2020: 3.45 per cent
• March 17, 2020: 2.95 per cent
• March 30, 2020: 2.45 per cent
• March 3, 2022: 2.7 per cent
• April 14, 2022: 3.2 per cent
• June 2, 2022: 3.45 per cent
• July 1, 2022: 4.2 per cent
• October 1, 2022: 5.7 per cent
• January 1, 2023: 6.45 per cent
• April 1, 2023: 7.45 per cent
• July 1, 2023: 7.7 per cent
• October 1, 2023: 8.2 per cent
• January 1, 2024: 8.2 per cent
• April 1, 2024: 8.2 per cent

Education development charges are imposed by the Halton District School Board and the Halton Catholic District School Board under the authority of the Education Act. 

Education development charges are payable at the rate in effect at building permit issuance. 

The current education development charges are:

Rates as of June 1, 2023

Residential rates per dwelling unit: 

• HDSB: $6,092
• HCDSB: $4,069
• Total: $10,161.

Non-residential Rate per square metre (square feet in brackets) of Gross Floor Area: 

• HDSB: $16.25 ($1.51)
• HCDSB: $11.19 ($1.04)
• Total: $27.44 ($2.55)

The Development Charges Act provides for certain mandated exemptions, such as;

• a board of education;
• any municipality or local board thereof;
• the creation of additional dwelling units in existing and new residential buildings, as prescribed, subject to the restrictions in Sec. 2 of Ontario Regulation 82/98
• the enlargement of an industrial building up to a maximum of 50 per cent of the gross floor area of the structure that existed before the original enlargement.

The town provides further exemptions in Development Charges By-law 2022-068 (pdf), such as;

• an agricultural development
• a seasonal structure or temporary venue
• a part of a building or structure used as a public hospital
• certain post secondary institutions
• a provincial or federal crown agency
• types of buildings or structures owned and used for the purposes of a conservation authority
• an area of worship within a place or worship

New mandated exemptions in-force (Bill 23):

• additional dwelling units subject to conditions prescribed in Development Charges Act
• non-profit housing development

Additional exemptions pending further legislation (Bill 23):

• affordable and attainable residential units
• inclusionary zoning residential units

Demolition credits will be provided against applicable development charges where buildings or structures have been demolished to permit the redevelopment of the property. The credit is based on the number and type of residential units demolished and/or the total floor area and type of non-residential building or structures demolished. It is available for five years from the issuance date of the demolition permit.

Refer to the Halton Region, Halton District School Board and Halton Catholic District School Board websites for information on exemptions and credits pertaining to their development charges.

The town typically collects development charges at the time when a building permit is issued.

Deferral instalments

The following types of development, further defined in Ontario Regulation 454/19, are able to defer development charge payments:

• Rental housing (that is not non-profit)
  • Pay in six annual instalments beginning on the date the building is first occupied, and each of the following five anniversaries of that date
• Institutional (includes long term care homes, retirement homes, certain post-secondary institutions, Royal Canadian Legion facilities, hospice)
  • Pay in six annual instalments beginning on the date the building is first occupied, and each of the following five anniversaries of that date

Other details

For the development charges that are deferred, interest is charged from the time the development charge would normally have been payable (building permit issuance), until the final payment is received, at the maximum interest rate permitted under section 26.3 of the Development Charges Act. 

Owners may enter into an alternative payment agreement with the town and choose to forego the deferral of development charges, or pay the balance of development charges outstanding at any time during the life of the deferral.

Payments can be made by electronic funds transfer or wire transfer. Payments via cheque may be dropped off at ServiceOakville or mailed to the attention of Development Finance at:

Corporation of the Town of Oakville
1225 Trafalgar Road
Oakville, ON L6H 0H3

To help serve you better, please contact the Finance department before making a payment at 905-338-4196 or DCForms@oakville.ca.

Returned payments are subject to a return item fee of $45. A returned payment may prevent your permit from being issued, or result in your permit being revoked. Any additional charges as a result of a return payment are the responsibility of the applicant.

As required by the Development Charges Act, 1997, the Treasurer for the Town of Oakville shall prepare an annual financial statement reporting on the status and transactions relating to the development charge reserve funds for the previous year. 

This statement is presented to the Council of the Town of Oakville for their review and may be reviewed upon request. 

Review the Development Charge Annual Reports.