Development charges
Learn about development charges, the current Development Charges (DC) Bylaw and how fees support municipal services.
On this page:
- When development charges apply
- 2026 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 use.
Community benefits charges and parkland conveyance may also apply. Visit the Community Benefit Charge and Parkland Conveyance page to learn more.
2026 bylaw update
City Council approved a new Development Charges Bylaw on March 23, 2026. We conduct a background study to determine the fees we'll charge.
The study includes:
- a forecast of the number, type and location of planned housing units, population and non-residential development expected in the city
- the average capital service levels we've provided over the previous 15 years for DC eligible services
- future capital projects, which includes analyzing gross expenditures, funding sources and net expenditures that we've either incurred or will incur, to support the forecasted development
A formal public meeting was held on February 23, 2026, to:
- review the draft bylaw update and development charge background study
- consider feedback from the public
A formal public meeting will be held on February 23, 2026 to:
- review the draft bylaw update and development charge background study
- consider feedback from the public
New rates take effect on April 1, 2026.
The 2026 Development Charges Background Study (PDF) can be referenced for further information on how we set the rates. Other agencies set their own rates and may update their rates on different dates – please contact them directly for questions on their DC rates and processes.
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 as of 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 first occupancy
- all other residential development charges are to be paid in full before an occupancy permit can be issued
- all other development types must pay development charges before the building permit is issued
- non-profit housing developments are exempt from municipal 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 City’s Development Charge Interest Policy (PDF). This policy is currently being updated now that the 2026 DC bylaw has been approved.
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
| Residential item | 2023 | 2024 | 2025 | 2026* | 2026** April 1 |
|---|---|---|---|---|---|
| Single and semi-detached units | $19,303 | $20,572 | $21,429 | $22,331 | $25,201 |
| Multiple units (refer to the DC bylaw for definitions) | $12,697 | $13,531 | $14,095 | $14,688 | $17,956 |
| Apartments with 3 bedrooms or less | $10,627 | $11,326 | $11,797 | $12,295 | $14,816 |
| Apartments with 4 bedrooms or more | $23,801 | $25,365 | $26,422 | $27,534 | $30,835 |
| Lodging houses per bedroom | $5,526 | $5,890 | $6,134 | $6,393 | $7,391 |
| Non-residential item | 2023 | 2024 | 2025 | 2026* | 2026** April 1 |
|---|---|---|---|---|---|
| Per square metre of floor area | $83.08 | $88.54 | $92.23 | $96.11 | $83.76 |
Rate notes
*2026 rates are effective on December 1, 2025. Discounts for rental buildings will be deducted from the posted rates based on the number of bedrooms per unit.
** Revised 2026 rates from new DC bylaw approval – effective April 1, 2026.
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 facilities
- development-related studies
- roads and related transportation services
- water supply and wastewater
- stormwater drainage and control
Developments exempt from charges
The following developments are exempt under the City’s DC Bylaw and the DC Act:
- land owned and used by a municipality, local board, board of education or the provincial/federal Crown
- non-profit housing development
- affordable and attainable housing as defined in the DC Act
- additional residential units in rental buildings up to the limits in the DC Act
- second and third additional residential units in new or existing single, semi-detached or row houses (subject to limits in the DC Act)
- industrial building expansions up to 50% of the original gross floor area
- college or university uses as defined in the City’s DC by-law
- accessory buildings and temporary uses as defined in the City’s DC by-law
- developments replacing or changing existing uses may receive a redevelopment 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 (if applicable)
- 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.