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Learn about development charges and related fees in Ajax, including how they are calculated, when they are collected, and the policies and studies that support them. This page also provides access to current rates, interest information, annual reports, and background materials.
Development charges are one-time fees collected from developers and builders by municipalities. The Town of Ajax collects development charges on behalf of the Town, the Region of Durham (including GO Transit) and Durham area school boards.
The fees collected are used to pay for a share of growth-related capital projects such as infrastructure required for Transportation, Parks and Recreation, Library Services, By-Law Enforcement Services and Fire Services. Fees are also used to pay for a share of additional vehicles and equipment required to deliver these services as well as growth-related administrative studies.
Effective January 1, 2020, the Province amended the Development Charges Act, 1997 timing of when the DC rate is determined (DCA 26.2) and when the DC shall be collected for specified developments. Further amendments to DCA 26.2(5) came into effect on June 6th, 2024 to reduce the prescribed amount of time that DC rates can be frozen for permits with applications subject to DCA 26.2.
Beginning November 3rd, 2025 under Bill 17, changes to the timing of when DCs become payable for non-rental residential buildings are in effect in accordance with DCA 26.1 (3).
Development charges are collected on the date that the first building permit is issued for all commercial and industrial developments.
For institutional and rental housing developments as defined in O. Reg. 454/19, the Town and Region development charges are to be paid in 6 equal annual instalments, beginning upon first occupancy of the building, plus any interest earned up to November 2nd, 2025.
Board of Education Development charges are due at time of Building permit issuance for all applicable development types.
For Residential development that is not rental housing development, a municipal development charge shall be paid in full on the earlier of,
Development charges are calculated at the current rate in effect on the date that the first building permit is issued for a development.
Exception: If a site plan or zoning amendment application was submitted to the Town after January 1, 2020 the development charge rates are locked-in on the date a complete application is received by the Town. The locked-in rates are either in effect for 2 years if the application approval date is on or before June 5, 2024 OR for 18 months if the application approval date is on or after June 6, 2024.
| DC Rates to Use | DC Rates to Use | |
|---|---|---|
| Situation | Town of Ajax and Region of Durham | Board of Education |
| A complete application forsite plan or zoning amendment was made prior to January 1, 2020 | DC rate in effect at permit issuance | DC rate in effect at permit issuance |
| A complete application forsite plan or zoning amendment was made on or after January 1, 2020 | DC rate in effect at application date plus interest to month of permit issuance* | DC rate in effect at permit issuance |
| The development is not subject to a site plan or zoning amendment application | DC rate in effect at permit issuance | DC rate in effect at permit issuance |
*Interest will be calculated on the Town of Ajax development charges from the date of application to the first day of the month in which a building permit is issued. The Region of Durham currently does not charge interest.
For your convenience, Historical DC rates since January 1, 2020 can be downloaded. Should there be a deviation from any posted rate, the rate in the brochure will be deemed to be the correct rate.
| Residential Type | Town of Ajax | Board of Education | Region of Durham (Including GO Transit fee) | Total |
|---|---|---|---|---|
| RESIDENTIAL | ||||
| Single Detached Dwelling | $45,279 | $7,535 | $74,078 | $126,892 |
| Semi-Detached Dwelling | $45,279 | $7,535 | $74,078 | $126,892 |
| Other Multiples | $36,932 | $7,535 | $58,973(medium density multiples) | $103,440 |
| Apartment Dwellings, two bedrooms or more | $24,635 | $7,535 | $43,070 | $75,240 |
| Apartment Dwellings, less than two bedrooms | $15,461 | $7,535 | $26,456 | $49,452 |
| Special Care/Special Dwelling Units | $13,135 | $13,135 | ||
| NON-RESIDENTIAL (PER SQ. FT OF GROSS FLOOR AREA) | ||||
| Commercial | $11.76 | $0.60 | $40.48 | $52.84 |
| Industrial | $11.76 | $0.60 | $19.24 | $31.60 |
| Institutional | $11.76 | $0.60 | $22.26 | $34.62 |
| NON-RESIDENTIAL (PER SQ. METRE OF GROSS FLOOR AREA) | ||||
| Commercial | $126.59 | $6.46 | $435.72 | $568.77 |
| Industrial | $126.59 | $6.46 | $207.10 | $340.15 |
| Institutional | $126.59 | $6.46 | $239.60 | $372.65 |
Town of Ajax policy COR 148 – Development Charge Interest Policy governs the charging of interest on development charges that are eligible for instalment payments or rate freeze under sections 26.1 and 26.2 of the Development Charges Act, 1997 (DCA).
The interest rate applied will be the average bank prime rate plus 1% on October 15 for a January 1 interest adjustment date and April 15 for a July 1 interest adjustment date. The date that interest will be applied from will be:
For rental residential and institutional applications eligible for installment payments under Section 26.1 of the DCA – from the date of the building permit issuance until November 2, 2025.
For applications eligible for development charge freezing under section 26.2 of the DCA – the date an application for an approval of development was made for those developments requiring Zoning or Site Plan approvals.
| Situation | Interest will be calculated as follows: |
|---|---|
| Frozen Development Charges(Section 26.2 of DCA) | from date of site plan or zoning amendmentapplication to the first day of the month in which a building permit is issued |
| Deferred Development Charges(Section 26.1 of DCA) | from date of building permit issuance to the date of final instalment payment |
| Effective Date | Average Bank Prime Rate | Town of Ajax Interest Rate |
|---|---|---|
| January 1, 2026 | 4.7% | 5.7% |
| Effective Date | Average Bank Prime Rate | Town of Ajax Interest Rate |
|---|---|---|
| July 1, 2025 | 4.95% | 5.95% |
| January 1, 2025 | 6.45% | 7.45% |
| July 1, 2024 | 7.20% | 8.20% |
| January 1, 2024 | 7.20% | 8.20% |
| July 1, 2023 | 6.70% | 7.70% |
| January 1, 2023 | 5.45% | 6.45% |
| July 1, 2022* | 2.70% | 3.70% |
| Effective Date | Bank of Canada Bank Rate | Town of Ajax Interest Rate |
|---|---|---|
| June 30, 2022* | 1.75% | 3.75% |
| December 31, 2021 | 0.50% | 2.50% |
| June 30, 2021 | 0.50% | 2.50% |
| December 31, 2020 | 0.50% | 2.50% |
| June 30, 2020 | 0.50% | 2.50% |
| December 31, 2019 | 2.00% | 4.00% |
*In effect for interest calculations on building permits paid until November 28, 2022
Effective December 31, 2019 to November 27, 2022, interest rate applied has been the Bank of Canada Bank Rate plus 2% as at December 31st or June 30th.
Under the Development Charges Act, Section 43, the Treasurer of a municipality is required to provide financial statements relating to development charge by-laws and reserve funds on an annual basis.
Statements must include the opening and closing balances of DC reserve funds and the transactions relating to the funds, as well as statements identifying assets where capital costs were funded under a development charge by-law during the year.
Under the Act, these statements must be made available to the public, and can be viewed here: