Development charges
Learn about development charges, the current Development Charges Bylaw and how fees support municipal services.
On this page:
- When development charges apply
- 2019 bylaw update
- Development charges
- Services funded by development charges
- Developments exempt from charges
- Development charges from other agencies
- Annual statement of the treasurer
When development charges apply
Development charges pay for the increased demand on municipal services caused by growth.
The Development Charges Bylaw applies to all new development and some changes in land use.
Community benefits charges and parkland conveyance may also apply. Visit the Community Benefit Charge and Parkland Conveyance page to learn more.
2019 bylaw update*
City Council approved a new Development Charges Bylaw in December 2019.
*The city is currently updating the Development Charges Bylaw through 2025 and early 2026. We will share more information as it becomes available.
Current development charge rules
In accordance with the Development Charges Act (DCA), development charges are now:
Calculated:
- at either the site plan application date or the zoning bylaw amendment application date, whichever is later
- if neither applies, the charge is calculated on the date the building permit is issued
Paid:
- institutional and residential rental building development charges are paid on a deferred schedule over 6 installments, starting at occupancy
- all other residential development charges are paid in full before an occupancy permit is issued
- all other development types must pay development charges before the building permit is issued
- non-profit housing developments are exempt from development charges
Interest charges
Starting November 3, 2025, no interest will be charged on deferred DC payments.
Find more information about interest charges in the Development Charge Interest Policy (PDF).
Before you apply for a building permit
When you prepare your building permit application, allow time for:
- the city’s regulated processing timeline for the scope of work proposed
- addressing any issues identified by a plans examiner
Development charges
The 2019 Development Charges Background Study (PDF) explains how we set our fees. Other agencies may update their rates on different dates.
| Residential item | 2022 | 2022 revised* | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Single and semi-detached units | $18,045 | $16,698 | $19,303 | $20,572 | $21,429 | $22,331 |
| Multiple units (including townhouses, maisonettes and terrace dwellings) | $11,869 | $10,983 | $12,697 | $13,531 | $14,095 | $14,688 |
| Apartments with up to one bedroom | $9,935 | $9,193 | $10,627 | $11,326 | $11,797 | $12,295 |
| Apartments with two-three bedrooms | $9,935 | $9,193 | $10,627 | $11,326 | $11,797 | $12,295 |
| Apartments with four or more bedrooms | $22,248 | $20,589 | $23,801 | $25,365 | $26,422 | $27,534 |
| Lodging houses per bedroom | $5,166 | $4,781 | $5,526 | $5,890 | $6,134 | $6,393 |
| Non-residential item | 2022 | 2022 revised* |
2023 | 2024 | 2025 | 2026** |
|---|---|---|---|---|---|---|
| Per square metre of floor area | $81.85 | $71.87 | $83.08 | $88.54 | $92.23 | $96.11 |
Rate notes
*Effective September 19, 2022, new rates were charged as a result of changes to the Development Charges Act. These changes no longer permit municipalities to collect development charges for cemeteries or parking.
**2026 rates are effective on December 1, 2025. Discounts for rental apartment buildings will be deducted from the posted rates based on the number of bedrooms per unit.
For more information, request our development charges brochure from the Integrated Planning and Public Works (IPPW) counter on the second floor of City Hall, Monday to Friday, 8:30 a.m. to 4:30 p.m. or email devchargedeferrals@waterloo.ca for a digital copy.
Services funded by development charges
Development charges fund:
- libraries
- fire services
- parks and major indoor recreation
- growth and engineering studies
- roads and related transportation
- public works and fleet
- water supply and wastewater
- stormwater drainage and control
Developments exempt from charges
The following developments are exempt under Bylaw 2019-064 and the DCA:
- land owned and used by a municipality, local board, board of education or the provincial/federal Crown
- non-profit housing development
- affordable housing
- additional residential rental units (up to 1% of existing units)
- second and third residential units in new or existing single, semi-detached or row houses (subject to restrictions)
- industrial building expansions up to 50%
- college or university uses (except third-party commercial/industrial/research or development outside designated academic lands)
- accessory buildings and temporary uses
- developments replacing or changing existing uses may receive a credit
Development charges for other agencies
Annual statement of the treasurer
The annual statement of the treasurer provides details on the development charge reserve fund activity.
The statement includes:
- services covered
- development charge collections
- interest earnings
- funding transfers
- borrowing
- landowner credit transactions (if applicable)
You can download the Annual Statement of Development Charges (PDF) or request a printed copy at the Finance counter on the first floor of City Hall, Monday to Friday, 8:30 a.m. to 4:30 p.m.