How development charges work in Milton: who pays, what they fund and where to find the current rates

What development charges are

According to the Town of Milton, development charges (DCs) are imposed to recover the growth-related capital costs of providing municipal services to new residential and non-residential development. They are set under Ontario's Development Charges Act, 1997, and before passing a new by-law the Town carries out a background study of future growth and development.

The Town-wide charge is made up of services the Town lists in its pamphlet: services related to a highway, fire protection, library, transit, growth studies, parks and recreation, and public works operations. The pamphlet also lists area-specific stormwater management charges for development inside the Sherwood, Boyne, Derry Green, Trafalgar, Agerton, Britannia and Milton Education Village secondary plan areas.

Who pays and how it is calculated

A charge may apply if you are constructing a new building, adding to a building in a way that increases the number of residential units or the non-residential floor area, or redeveloping or changing the use of all or part of a building, including tenant fit-outs. Residential charges depend on the number and type of dwelling units. Non-residential charges depend on total floor area and on whether the use is retail or non-retail.

Three layers of charges

The Town's charges are only one part of the total. The Town's pamphlet gives separate contacts for the Town, for Halton Region's development charges and for the school board's education development charges, and the FAQ notes that the Town and the Region may allow deferrals of non-residential charges while the school boards do not. Anyone costing a project should ask each body for its own figure.

• Town of Milton Development Finance: 905-878-7252 ext. 2402, DevelopmentFinance@milton.ca.
• Halton Region development charges: 905-825-6000 ext. 7290, DevelopmentCharges@halton.ca.
• Education development charges: the Halton District School Board lists edc@hdsb.ca in the Town's pamphlet.

When the rate is set and when it is paid

The Town's FAQ says that where the Development Charges Act allows, the charge is calculated from the date of a site plan or zoning by-law amendment application, with interest, as long as the total does not exceed the current rates. Otherwise it is calculated with the rates in effect when the charge becomes payable. The charges are indexed on April 1 each year using Statistics Canada's quarterly Building Construction Price Index for Toronto.

The Town's two documents describe payment timing a little differently, so confirm it with Development Finance for your project. The FAQ (updated October 1, 2025) says charges are paid before the first building permit, with exceptions that include six instalments for rental and institutional development. The pamphlet (updated May 30, 2026) says residential charges are calculated before permit issuance with fees payable at first occupancy, and non-residential charges are generally payable before permit issuance.

Exemptions, discounts and credits

The pamphlet lists development that generally does not pay Town development charges. It also notes that where a building was demolished within the previous 60 months, or converted to another principal use, the charge is reduced.

• Places of worship and cemeteries that are exempt from taxation under the Assessment Act (only the exempt portion).
• Non-profit housing developments and affordable residential units that meet the Act's criteria, if the owner agrees with the Town to keep them affordable for at least 25 years.
• Up to three additional units in an existing detached home, or one in other existing residential buildings, where zoning allows.
• Bona fide agricultural development, including a one-time exemption of up to 50 square metres of commercial or retail space.
• Developments on land owned or leased by a publicly funded university for its own use, and public hospitals receiving aid under the Public Hospitals Act.
• A 50 per cent industrial expansion exemption, up to half of the existing industrial building's floor area.
• Seasonal structures, temporary venues and small accessory buildings under 10 square metres.

The Town also offers incentives outside the by-law. The Rental and Affordable Housing Rebate refunds building permit fees, up to $2,500 per unit, on qualifying developments from March 31, 2026 to December 18, 2027, and the Town applies the Development Charges Act's rental housing discount, which depends on the number of bedrooms in each rental unit. A discretionary rebate of up to $40,000 per property is available for agri-tourism and museum developments that meet the program's requirements.

The by-laws and where they stand

On June 15, 2026, Council resolved not to participate in the Province's Development Charge Reduction Program, according to the meeting's minutes. That decision did not change the by-laws above.

Where to find the current rates

MiltonIQ does not print dollar rates here, because they change each April 1 and the schedule changes again on December 31, 2026. The Town's Development Charges page posts the current residential and non-residential rate sheets, the by-laws, the background studies, the annual Treasurer's statement, and earlier rate sheets back to 2020.

If you think a charge was calculated incorrectly, the pamphlet says you may complain to Council in writing within 90 days after the charge, or any part of it, is payable, under section 20 of the Development Charges Act, 1997. The complaint must state your name, address and reasons.