# Do I pay development charges on a build in Hamilton?

> Hamilton development charges for June 2026 to May 2027: the rate for a new home by area, the 100% ADU exemption, the 20% and 4% reductions and when to pay.

- Canonical HTML: https://www.jdtconstruction.ca/guides/development-charges/
- Section: Home > Guides > Development charges
- Business: JDT Construction Inc., Hamilton, ON, Canada (serves Hamilton)
- Phone: (905) 818-0106 | Email: johnny@jdtconstruction.ca
- Page updated: 2026-11-05

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Guides

A new house does; an ADU usually does not. For June 2026 to May 2027 the City of Hamilton charges $44,415 to $102,451 for a new single or semi-detached house depending on the area, before reductions, plus education charges. Up to two additional dwelling units in a house are 100% exempt, and a demolition credit can offset a rebuild. JDT Construction sets these out from the City's own pamphlet.

## What are development charges?

The City: “DCs are a development fee collected by the City of Hamilton to help pay for the cost of growth.” They fund roads, water and wastewater and emergency services. “If a building permit is required, DCs may apply.” City charges follow the Development Charges Act and By-law 24-072; the two school boards set education charges, which the City collects [(City of Hamilton, Development Charges Pamphlet 2026 to 2027, read November 5, 2026)](https://www.hamilton.ca/sites/default/files/2026-10/development-charges-pamphlet-june1-2026-May31-2027-final.pdf).

## What does a new house pay?

**City of Hamilton development charges for a new single or semi-detached house, June 1, 2026 to May 31, 2027, before exemptions**

| Area | Per unit |
| --- | --- |
| Rural Area | $44,415 |
| Combined Sewer System, Urban Area A | $89,729 |
| Separated Sewer System, Urban Area A | $102,451 |
| Separated Sewer System, Urban Area B | $53,410 |
| Education charges (added) | $3,579 |
| Special area charges, where they apply (added) | $1,931 |

From page 3 of the pamphlet [(City of Hamilton, Development Charges Pamphlet 2026 to 2027, read November 5, 2026)](https://www.hamilton.ca/sites/default/files/2026-10/development-charges-pamphlet-june1-2026-May31-2027-final.pdf). Which area a lot is in is set by the by-law's maps; the City answers at DCRequest@hamilton.ca. A temporary 20% reduction (September 1, 2025 to August 31, 2027) and a 4% reduction (June 1, 2026 to May 31, 2027) come off the City charge.

## Is an ADU exempt?

Yes, up to two. The pamphlet lists a “100% exemption for up to two additional dwelling units ancillary to an existing or new detached house, semi-detached house or rowhouse” [(City of Hamilton, Development Charges Pamphlet 2026 to 2027, read November 5, 2026)](https://www.hamilton.ca/sites/default/files/2026-10/development-charges-pamphlet-june1-2026-May31-2027-final.pdf). So a basement apartment or a garden suite with a house normally pays no development charge; see [making a basement apartment legal](https://www.jdtconstruction.ca/guides/legal-basement-apartment/) and [ADUs](https://www.jdtconstruction.ca/builds/adus/).

## What about tearing down and rebuilding?

A demolition credit reduces the charge on the new building when the old one came down under a demolition permit. The pamphlet: the credit “is available for up to 5 years after the demolition permit is issued” and is valued at the rate in effect when you rebuild [(City of Hamilton, Development Charges Pamphlet 2026 to 2027, read November 5, 2026)](https://www.hamilton.ca/sites/default/files/2026-10/development-charges-pamphlet-june1-2026-May31-2027-final.pdf). The demolition rules themselves are in [tearing down a house to rebuild](https://www.jdtconstruction.ca/guides/demolition/).

## When is it paid?

Education charges before the building permit is issued. The City charge for a house that is not a rental is paid in one payment at occupancy; rental housing pays in six yearly payments starting at occupancy; non-residential buildings pay at permit issuance. Rates usually rise on June 1 each year [(City of Hamilton, Development Charges Pamphlet 2026 to 2027, read November 5, 2026)](https://www.hamilton.ca/sites/default/files/2026-10/development-charges-pamphlet-june1-2026-May31-2027-final.pdf). The permit fee is separate: [what a building permit costs](https://www.jdtconstruction.ca/guides/permit-fees/). Commercial rates are in the same pamphlet; see [commercial builds](https://www.jdtconstruction.ca/builds/commercial/).

Published by JDT Construction Inc., Hamilton. Updated November 5, 2026. Free to share and quote, with a link back to this page.

## Planning a build?

JDT draws it on a picture of your property and prices it in one written proposal.

[Call (905) 818-0106](tel:+19058180106) [Request a quote](https://www.jdtconstruction.ca/request/)

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JDT Construction Inc. Call (905) 818-0106. Full site: https://www.jdtconstruction.ca/