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).
What does a new house pay?
| 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). 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). So a basement apartment or a garden suite with a house normally pays no development charge; see making a basement apartment legal and 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). The demolition rules themselves are in tearing down a house to rebuild.
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). The permit fee is separate: what a building permit costs. Commercial rates are in the same pamphlet; see commercial builds.