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2026 Development Charges
By-law C.P.-1551-227
What are Development Charges?
(DCs)
A fee charged by the City to recover capital costs
associated with residential and non-residential
growth. Development charges do not pay for
operating costs or infrastructure renewal.
Who pays?
The owner of the land that develops or
redevelops the land, or any building or
structure on the land.
Growth costs are recovered to:
build new
infrastructure
supporting
growth
pay down
existing
debt for past
growth works
limit taxpayers
paying for
costs that
serve growth
Development charges assist in financing
capital projects required to meet the increased
need for services resulting from growth and
development. They may only be used for the
purpose for which they are collected.
When are DCs
calculated and paid?
For development types subject to Site Plan
or Zoning By-law Amendments, the DCs are
calculated the day a complete application
is received and frozen from the date of
application approval for a period of up to
eighteen months. If a building permit has
been issued within the frozen period, the
DCs are subject to a lower of calculation
being either the DCs plus frozen interest or
the current DC rate at the time of building
permit issuance. If the building permit has
not been issued within the frozen period,
the DCs are recalculated on the date the
first building permit is issued. For all other
development types DCs are calculated on
the date the first building permit is issued.
For deferred development types (all
residential and certain institutional) DCs
are collected post first building permit
issuance in accordance with section 26.1 of
the Development Charges Act. For all other
development types DCs are collected on the
date the first building permit is issued. For
more information please contact us.
How We Pay for a Growing City
Recreation
Centre
Existing Road
Local
Services
Water & Sewer Trunk Services
Road Upgrade
New Subdivision
Local
Road
Developer Costs
Development Charges
Stormwater
Management
Facility
District
Park
Residential
2026 Development Charge Rates
Effective January 1, 2026 to December 31, 2026
City Services
Totals
Service
Component
Single & Semi
Detached
(per dwelling unit)
Multiples/
Row Housing
(per dwelling unit)
Apartments with
< 2 Bedrooms
(per dwelling unit)
Apartments with
>= 2 Bedrooms
(per dwelling unit)
Fire
$99.70
$67.42
$44.10
$59.75
Police
$738.02
$499.11
$326.43
$442.59
Library
-
-
-
-
Parks & Recreation
$5,892.53
$3,985.02
$2,606.31
$3,532.24
Transit
$217.18
$146.88
$96.06
$130.17
Waste Diversion
$386.28
$261.23
$170.85
$231.52
Roads & Related
Services
$25,150.26
$17,009.34
$11,124.24
$15,074.72
Wastewater
$5,163.70
$3,492.13
$2,282.95
$3,094.92
Stormwater
$10,240.39
$6,925.18
$4,529.47
$6,136.99
Water Distribution
$2,675.93
$1,809.69
$1,183.59
$1,603.85
Inside Urban
Growth Area
$50,564
$34,195
$22,364
$30,306
Outside Urban
Growth Area (1)
$32,483
$21,970
$14,368
$19,471
Subject to rounding
Notes:
(1) Charge excludes Wastewater, Stormwater and Water Distribution
(2) This rate applies only to: 1) Hospitals under the Public Hospitals Act, 2) Universities defined in the Education Act, excluding
exemption 6.1 of the Ministry of Training, Colleges and Universities Act and Colleges established under the Ontario Colleges of
Applied Arts and Technology Act, 3) Lands, buildings or structures used or to be used for a place of worship or for the purposes of
a cemetery or burial ground, 4) Other land, buildings, or structures used for not-for-profit purposes defined in and exempt from
taxation under section 3 of the Assessment Act
(3) Industrial development charges are administered through the Industrial Lands Community Improvement Plan
Non-Residential
2026 Development Charge Rates
Effective January 1, 2026 to December 31, 2026
City Services
Totals
Service
Component
Commercial
($/m2)
Institutional
($/m2)
50% Institutional
($/m2) (2)
Industrial
($/m2) (3)
Fire
$0.77
$0.39
$0.20
$0.07
Police
$4.90
$2.48
$1.24
$0.47
Library
-
-
-
-
Parks & Recreation
$0.32
$0.20
$0.10
$0.14
Transit
$2.00
$1.25
$0.63
$0.36
Waste Diversion
-
-
-
-
Roads & Related
Services
$252.92
$157.21
$78.60
$110.72
Wastewater
$39.69
$23.66
$11.83
$66.29
Stormwater
$100.70
$62.28
$31.14
$98.43
Water Distribution
$27.00
$16.73
$8.36
$28.86
Inside Urban
Growth Area
$428.30
$264.21
$132.10
$305.33
Outside Urban
Growth Area (1)
$260.91
$161.53
$80.77
$111.75
Subject to rounding
Notes:
Non-Residential development charge rates are based on Gross Floor Area space ($/m2)
Under Section 43 (1) of the Development Charges Act, 1997 the treasurer of a municipality shall provide Council with an annual
financial statement relating to the Development Charge By-law(s) and reserve funds. This statement can be found at london.ca/dc.
Please note: Brochure content is for information purposes and should not be considered to be an interpretation of the Development
Charges Act, London's current DC By-law or a determination of charges, if any, that may apply to any specific application to a proposed
development.
Annual Indexing of Development Charge Rates
-
Development Charges will be increasing by 4.2% for 2026
-
The City of London Development Charge By-law was approved by Municipal Council on
October 20, 2020 and came into effect on January 1, 2021.
-
DC rates are subject to annual indexing using the Statistics Canada Quarterly,
Non-Residential Building Construction Price Index for Toronto, as prescribed by the
Council-approved By-law and Development Charges Act.
-
The City of London does not have the authority to set its own index rate. The Development
Charges Act and Regulation prescribes the index to be used by municipalities.
Indexing development charges helps to mitigate the impact of inflationary
increases on future growth-related capital costs as indexing is intended
to reflect changes to construction cost increases. This will help ensure
that originally planned infrastructure timing is maintained and new
development can proceed without delay.
How to obtain a copy of the By-law
Development Charges By-law C.P.-1551-227 in force and effect January 1, 2021.
The By-law is available at london.ca/dc or can be obtained from:
City Clerk's Office
3rd floor, City Hall
300 Dufferin Avenue, London, Ontario,
PO Box 5035 N6A 4L9
Contact:
Development Finance for DC Study
519-661-CITY (2489) x 7335 or [email protected]
Building Division for Administration of DC By-law
519-661-4555 or [email protected]
Planning and Development for CIPs and Growth Forecasts
519-661-4980 or [email protected]
Learn more
at london.ca/dc