On March 30, the federal and Ontario governments announced a partnership aimed squarely at the numbers that make projects work or kill them. Three pieces matter. First, an $8.8-billion, ten-year commitment to help municipalities cut residential development charges by 30 to 50 percent for three years, targeted at municipalities covering about 80 percent of the province's population. Second, an HST rebate that removes the full 13 percent on new homes valued up to $1 million, worth up to $130,000 and scaling down to zero by $1.85 million, for agreements signed between April 2026 and March 2027. Third, Bill 98, which standardizes official plans, reforms site-plan control, and prohibits municipalities from imposing standards beyond health and safety. Toronto has already moved, cutting some charges by up to 60 percent and freezing development charges at 2024 levels.
Taken together, the governments estimate the DC and HST measures can remove up to $200,000 in taxes and fees from a new home. That is a material change to feasibility on stalled projects. But read the fine print before you rebuild your model. The DC cuts are not automatic and not province-wide. They depend on each municipality opting in and identifying eligible infrastructure. The relief is real, but it is local, conditional, and time-limited.
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“Land development isn’t just about lots and grades, it’s about creating places people call home.”
Paul Kundzins, P.ENG.
Practice Lead, Civil Engineering
paul.kundzins@priengineering.com