If you are pricing a garden suite or laneway suite in Toronto, sooner or later you will hit a list of fees that have nothing to do with construction: zoning review, building permit, education levy, damage deposits. This guide explains exactly what each city fee is, why the municipality charges it, how much to budget — and which ones you get back.
The short answer
For a typical Toronto garden suite, city administrative fees add up to roughly $5,000–$9,000. They are set by the city, not the builder — a transparent builder passes them through at cost, with no markup. About $3,000 of that (the curbside damage deposit) is refunded to you after construction.
Every city fee, line by line
| Fee | Typical amount | What it pays for |
|---|---|---|
| Zoning application fee | ~$600 | The city checks your lot and proposed suite against zoning by-laws — setbacks, height, lot coverage. |
| Building department review | $1,000–$2,000 | Plan examination and the building permit itself. Varies with unit size. |
| Education levy | ~$3,500 (if required) | A provincial charge collected by some municipalities to fund school infrastructure. Not every municipality applies it to garden suites. |
| Curbside damage deposit | ~$3,000 (refundable) | A security deposit in case curbs, sidewalks or boulevards are damaged during construction. Returned to you if the street is left as it was found. |
Why does the city charge these fees?
Each fee maps to a real municipal cost. Zoning and building review pay for the staff who check that your suite is safe and legal. The education levy funds school capacity as neighbourhoods densify. The damage deposit protects public infrastructure during construction — and comes back to you when the work is done cleanly.
The big one you probably will not pay: development charges
Development charges (DCs) are the largest fee on most Toronto construction projects — tens of thousands of dollars. The good news: garden suites are typically exempt from development charges in Toronto, because they qualify as additional residential units on an existing residential lot. A good builder confirms the exemption for your specific municipality before you sign anything.
How Kasa Suites handles city fees
We itemize every city fee in writing before you sign, pass them through at cost with no markup, and manage the entire application process as part of our flat design & permit package. You see the full picture — suite price, permit package, city fees and site work — on one page, before committing to anything.
Frequently asked questions
How much are permit fees for a garden suite in Toronto?
Budget roughly $5,000–$9,000 for all city administrative fees combined, of which about $3,000 (the curbside damage deposit) is refundable.
Do garden suites pay development charges in Toronto?
Typically no — garden suites are usually exempt as additional residential units. Confirm the exemption for your municipality before signing.
Are city fees negotiable?
No. They are set by the municipality and are the same no matter who builds your suite. What varies is whether your builder marks them up — ask for them to be passed through at cost, itemized in writing.
Who pays the city fees — me or the builder?
You do, since they attach to your property and permit. A transparent builder manages the applications for you and shows every fee as a separate line, not buried inside the construction price.
Ready for real numbers? See our full pricing breakdown or book a site assessment.
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