Development charges on a new single or semi-detached home in Mississauga add up to $139,019.54 at the full rates in effect from August 1, 2026 to January 31, 2027. In Brampton the full figure is $155,650.32. Both cities and the Region of Peel are cutting their shares by about half for eligible permits, and you’ll often pay $0 for a basement unit, a garden suite, an addition or a like-for-like rebuild. Ontario law now also lets you pay residential development charges at occupancy instead of at permit. This guide covers what you pay, what’s exempt, and how to check your own number.
What development charges are and who collects them
Development charges (DCs) are one-time fees on new development that pay for growth-related infrastructure such as water mains, roads, transit, fire halls and libraries. They’re set under Ontario’s Development Charges Act, 1997. In Peel, a residential permit carries four layers:
- The city’s own charge (Mississauga or Brampton). Mississauga also has a stormwater management DC charged per hectare.
- The Region of Peel charge, which is the largest piece and is mostly water, wastewater and roads.
- Education development charges for the Peel District School Board and the Dufferin-Peel Catholic District School Board.
The city collects all of it for you. Peel’s 2024 rate sheets had a separate GO Transit line. It doesn’t appear on the 2026 Mississauga, Brampton or Peel rate sheets, though Brampton’s program pages still mention GO Transit charges “where applicable.” Rates are indexed every February 1 and August 1.
2026 rates for a single or semi-detached home
These are the full, unreduced per-unit rates from the Mississauga rate sheet, the Brampton rate sheet and the Peel Region schedule, all valid August 1, 2026 to January 31, 2027.
| Charge (per single/semi unit) | Mississauga | Brampton |
|---|---|---|
| City | $53,363.00 | $69,993.78 |
| Region of Peel | $79,980.54 | $79,980.54 |
| Peel District School Board | $4,376.00 | $4,376.00 |
| Dufferin-Peel Catholic DSB | $1,300.00 | $1,300.00 |
| Total before reductions | $139,019.54 | $155,650.32 |
The 2026 reductions
The rate sheets don’t show the discounts. They’re applied on top, and each one has its own rules:
- Mississauga cut its residential DCs by 50% for all residential unit types as of January 29, 2025. The original deadline was November 13, 2026. Council has since extended it, and the footings and foundations permit now has to be pulled before December 31, 2027 (City incentives page).
- Brampton’s Development Charge Reduction Program takes 50% off the City share for singles and semis. It’s a fixed $34,710.04, which is half the March 30, 2026 rate. It covers qualifying permits issued March 31, 2026 through March 30, 2029, and you need occupancy within 30 months of the permit. There’s no separate application.
- Peel Region’s DC Deferral and Grant Program gives a grant equal to 50% of Regional DCs. Its current page lists December 31, 2027 for permit issuance, application and a signed DC payment agreement. You also have to show the savings are passed to the homebuyer through the agreement of purchase and sale.
The Region’s program framework, which Peel says is being revised, still shows the older November 13, 2026 deadline. Go by the December 31, 2027 date on the main program page, and get it confirmed in writing by admin.dcs@peelregion.ca. If you’re building a home for yourself rather than for sale, ask the Region whether you qualify, because the program is written around a sale to a buyer.
If both 50% cuts apply to a Mississauga single, you’d pay roughly $26,681.50 (City) + $39,990.27 (Region) + $5,676 (school boards) = $72,347.77. In Brampton it would be $35,283.74 (City, after the fixed reduction) + $39,990.27 + $5,676 = $80,950.01. Without the Regional grant, the Brampton figure is $120,940.28. The City makes the final calculation, so use these totals for budgeting only.
When you pay: permit or occupancy
Under section 26 of the Act, DCs have traditionally been due when the building permit is issued. That changed on November 3, 2025, when Bill 17 (the Protect Ontario by Building Faster and Smarter Act, 2025) came into force. Section 26.1 now says DCs on non-rental residential development are payable in full at the earlier of the occupancy permit or the day the building is first occupied. In prescribed circumstances the municipality can ask for security, and you can still choose to pay early.
City and Region web pages haven’t fully caught up with this. Mississauga’s payments page still says DCs must be paid before the permit is issued, while Peel says the deferral to occupancy is now required by provincial law. Education charges come under the Education Act, not the DC Act, so ask the City whether they’re still collected at permit.
If your project needed site plan approval or a rezoning, the rate is frozen at your application date (s. 26.2). Bill 185 (2024) cut the window to use that frozen rate from two years after approval to 18 months.
Exemptions that cover most homeowner projects
Section 2 of the Development Charges Act exempts several common projects:
- Enlarging an existing unit. An addition or second storey that doesn’t create a new unit triggers no DCs (s. 2(3)).
- A second or third unit in an existing detached, semi or rowhouse, or one unit in an ancillary building such as a garden suite, provided the total stays within the limits in s. 2(3.2).
- The same additional units in a new detached, semi or rowhouse (s. 2(3.3)). That means a small builder can put up a new house with a basement unit and pay DCs only on the main unit.
Education charges have their own, narrower exemptions in Ontario Regulation 20/98. These cover up to two extra units inside an existing single detached house, as long as they’re no larger than the existing unit. We couldn’t find anything in that regulation that addresses a unit in a separate backyard building, so check with the school boards before you count on $0 for a garden suite.
Demolition credits
When you knock down a house and rebuild on the same lot, the City and the Region give you a credit for the units you demolished. The Mississauga by-law (0133-2022, s. 17), Peel’s by-law 77-2020 and Brampton’s 2024 by-laws all allow five years from the date the demolition permit was issued. You need a copy of the original demolition permit. School boards work differently. The education charge exemption for a replacement unit only applies if the new building permit is issued within two years of the demolition permit. If the old building never paid DCs because it was exempt, Mississauga won’t give a credit.
Worked examples with 2026 rates
Garden suite or basement unit behind an existing house
Say you’re adding a garden suite behind a detached house in Mississauga that has no other extra units. Under s. 2(3.2), City and Region DCs are $0. A legal basement unit in the same house is also $0. On education charges, ask the boards about the garden suite. If they do apply, they’d be $5,676 at current rates. You’ll still pay permit fees, which our Mississauga building permit guide breaks down.
Replacing a detached house with a new detached house
You demolish one single and build one single. The demolition credit cancels the City and Region charges, so those are $0 if the new permit is ready within five years of the demolition permit. Education charges are $0 too if the permit is issued within two years. If it takes longer than two years, add $5,676. Size doesn’t matter here. A 2,000 sq ft house and a 5,000 sq ft custom home are charged at the same per-unit rate.
Replacing one house with a pair of semis in Mississauga
Semi-detached houses are now permitted in many RL and RS zones (see our Mississauga zoning map guide), which makes this a popular infill project. One semi uses the demolition credit. The other is a new unit and pays the single/semi rate:
- At full rates: $53,363 + $79,980.54 + $5,676 = $139,019.54.
- With the City’s 50% cut only: $26,681.50 + $79,980.54 + $5,676 = $112,338.04.
- With the City and Region cuts both applied: $72,347.77.
If you add a basement unit to each semi, that’s exempt under s. 2(3.3). It can make the project worth doing without adding to the DC bill. For bigger infill, our multiplex and land development team can run the numbers for each unit type.
How to check your rate and claim credits
- Download the current rate sheet from Mississauga’s DC page or Brampton’s. Rates change on February 1 and August 1.
- Keep your demolition permit and the date it was issued. Mississauga works out credits and exemptions only after it reviews your permit application, using the Supplementary Information Form.
- Ask about the reductions early. In Mississauga, email dc.admin@mississauga.ca. In Brampton, email admin.development@brampton.ca. For the Regional grant, apply to Peel through admin.dcs@peelregion.ca before the permit is cleared.
- If you think the bill is wrong, you can file a written complaint to Council within 90 days of the charge becoming payable, under section 20 of the Act.
FAQ
Do I pay development charges on a garden suite in Mississauga or Brampton?
Usually not for City and Region charges. The DC Act exempts one unit in a building ancillary to a detached, semi or rowhouse, provided the house has no more than two units. Check education charges separately with the school boards.
Does a home addition trigger development charges?
No, as long as it only enlarges your existing unit. See our home additions page for what an addition involves.
Are development charges higher for a bigger house?
No. Residential DCs in Peel are charged per unit and by unit type, not by floor area. The one exception is small units under 750 sq ft (65 m² for Mississauga’s City rate), which have a lower rate.
Is the Peel Region grant deadline November 13, 2026?
That was the original date. Peel’s current program page now says December 31, 2027, under Council Resolution 2026-439, but the framework pages haven’t been updated to match. Get the deadline that applies to you confirmed in writing.
Do these rules apply elsewhere in Ontario?
The exemptions for additional units and enlargements, and the deferral to occupancy, come from the provincial Act and apply everywhere in Ontario. Rates, demolition credit windows and discount programs are set by each municipality. Our building permit cost guide compares a few GTA cities.
Before you apply
Pin down your unit count early, because each added unit can swing the bill by tens of thousands of dollars. Time your demolition permit so you don’t miss the two-year and five-year credit windows. And watch the December 31, 2027 date if you’re counting on the Mississauga and Peel reductions. If you’d like a builder to check DCs, credits and permit timing for your lot before you commit, contact Leedway Group.
