By-Law Breakdowns

The 2026 Ontario Multiplex Playbook: How Bill 23 & Bill 185 Cut Municipal Fees on Additional Units

AsOfRight Planning Desk · November 2, 2026 · 1 min read

Ontario now exempts the second and third residential units on a lot from development charges and parkland. Here is how the exemption works, where it stops, and how to estimate it for your site.

Development charges (DCs) used to be the quiet deal-killer on small infill projects. A triplex in a major Ontario city could carry well over $100,000 in municipal charges before a shovel went in the ground. The More Homes Built Faster Act (Bill 23, 2022) and the Cutting Red Tape, Building Ontario Act (Bill 185, 2024) changed that math for additional residential units.

What changed

• The Planning Act now permits up to three residential units on most serviced residential lots as-of-right (one primary dwelling plus two additional units).
• The Development Charges Act, s. 2(3.1), exempts those additional residential units from development charges.
• Additional units are also exempt from parkland dedication and cash-in-lieu under s. 42 of the Planning Act.
• Municipalities can permit more than three units through their own by-laws — Toronto's multiplex permissions allow up to four citywide.

Estimate your savings

AsOfRight estimates the saving as (units − 1) × the city's per-unit benchmark, capped at four units. Pick a city below to see the illustrative figure.

Where the exemption stops

• A fourth unit (where permitted) may not be exempt — confirm with your municipality.
• Building permit fees, water and sewer connection costs and upgrades to electrical service still apply.
• Heritage designation, conservation authority regulated areas (O. Reg. 41/24) and tree protection by-laws can still block or delay a project.

General information, not legal or planning advice. Confirm current rules with your municipality and a licensed professional.