City of Toronto · Toronto

Garden suites in Toronto: 2026 rules and fees

Toronto allows multiplexes of up to four units city-wide, six in Toronto and East York and Ward 23, plus one garden or laneway suite per lot. A two-storey garden suite can be 120 m² and 6.3 m tall. Development charges on rear-yard suites can be deferred 20 years.

Lake Ontario Kingston Picton Napanee Belleville Brockville Cobourg Toronto
Stylized map. Markers link to each city's ARU guide. Toronto is covered as a reference guide.
  • Units per lot4 city-wide (6 in TEY + Ward 23) + 1 suite
  • Detached unitGarden or laneway suite (one)
  • Size limit120 m² (2 storey) / 60 m² (1 storey)
  • ParkingNot required for suites
  • Development chargesExempt or deferred
  • Best incentiveDC deferral, no cash grant

What are the ARU rules in Toronto?

Toronto allows multiplexes of up to four units city-wide, six in Toronto and East York and Ward 23, plus one garden or laneway suite per lot. A two-storey garden suite can be 120 m² and 6.3 m tall. Development charges on rear-yard suites can be deferred 20 years.

City of Toronto: additional residential unit rules
RuleWhat it saysSource
Units per lotMultiplexes up to 4 units city-wide, up to 6 in Toronto and East York and Ward 23 (June 2025)Official source
Garden or laneway suiteOne ancillary building per lot with either a garden suite or a laneway suite, not bothOfficial source
Garden suite sizeMax 120 m² for two storeys, 60 m² for one storey, less than the main houseOfficial source
Garden suite height4.0 m within 7.5 m of the house, 6.3 m when 7.5 m or more awayOfficial source
Laneway suiteMax 10.0 m long and 8.0 m wide, beside a public lane with at least 3.5 m frontageOfficial source
Fire accessPath from the street, 45 m prescriptive limit, up to 90 m with sprinklers or strobes on pre-approved plans. Cannot be variedOfficial source
Zoning bylawZoning By-law 569-2013 (Ch. 150.7 garden, 150.8 laneway, 150.10 secondary suites)Official source

Servicing: Toronto Hydro raised the basic connection allowance from $1,396 to $3,059 in 2026. Plumbing must meet the Building Code for separate or shared services. (source)

These local rules sit on top of Ontario's province-wide ARU rules. See how Toronto compares in our ARU rules by city comparison.

How do I get an ARU building permit in Toronto?

Apply through Toronto Building Online Services. A zoning review is recommended first, plus a tree declaration, site plan, grading plan and SB-12 energy form. Minor zoning relief needs a Committee of Adjustment variance.

Permit fees: From January 1, 2026: $18.56 per m² for new residential (Group C), $11.53 per m² for interior alterations, plus $56.33 per new unit. See the official page.

Permit-ready drawings are where most delays start. Our ARU design and permit service prepares the full set and answers reviewer comments.

Are there grants for secondary units in Toronto?

In Toronto, the best local incentive right now is: DC deferral, no cash grant. Second and third units are also exempt from development charges, and the federal CMHC-insured refinance lets owners borrow up to 90% of the finished home's value. Check each program's status below before you plan around it.

Toronto ARU incentives and their status
ProgramAmountConditionsStatus
Laneway and Garden Suite DC DeferralDevelopment charges deferred 20 yearsNo severance or condo, agreement on title, apply with the Housing SecretariatActive
DC exemption for multiplex units2nd to 4th unit exempt (up to 6 plus a suite under a deferral agreement)Parcel unit limits applyActive
Affordable Laneway Suites ProgramForgivable loan (pilot)Not applicableDiscontinued

Federal options apply everywhere, including CMHC-insured refinancing of up to 90% of the finished home's value. Read the secondary suite financing guide.

What rent can a secondary unit earn in Toronto?

The average rent across all unit types in the Toronto CMA was $1,917 a month in October 2025, with 3.0% (2025) vacancy. Bedroom-level averages were not published on the CMHC page we checked. New garden and laneway suites usually rent above the all-unit average.

Source: CMHC Rental Market Survey.

All units (average) $1,917

Averages for existing rental units. A new, private suite often rents above the average. Data source.

Can I use the unit as a short-term rental?

Short-term rentals are allowed only in the operator’s principal residence. You cannot rent out the suite short-term while living in the main house. Registration is $390 and entire-home rentals are capped at 180 nights a year. Official rules

Are there pre-approved ARU designs in Toronto?

"Made in Toronto" pre-approved plans for garden and laneway suites: a studio and a 2 bedroom for each type, with three fire-access options, pre-reviewed for the Building Code and zoning. Any change voids the pre-approval. See the designs.

Worth knowing

  • A lot can have a garden suite or a laneway suite, not both.
  • The City warns owners not to pay development charges up front on a rear-yard suite, because they cannot be credited back.
  • O. Reg. 462/24 cut garden suite separation to 4 m and allows 45% lot coverage.

Who do I call in Toronto?

Start with the City of Toronto building or planning office for zoning and permit questions. These numbers come from the municipality's own website.

OfficeContact
Toronto Building311
Applicationsbldapplications@toronto.ca
Short-term rentals416-395-6600

Our crews build in Eastern Ontario, from Cobourg to Brockville. We keep this Toronto guide as a reference for owners comparing rules. Ask us a question.

Toronto secondary unit FAQ

How big can a garden suite be in Toronto?

A two-storey garden suite can have up to 120 m² of floor area and a one-storey suite up to 60 m², and it must be smaller than the main house. Height is 4.0 m within 7.5 m of the house and 6.3 m beyond that.

Do I pay development charges on a Toronto garden suite?

Rear-yard suites can use the City’s deferral program, which defers development charges for 20 years as long as the lot is not severed or turned into a condo. The City advises not paying them up front, because they cannot be credited back later.

Can I Airbnb my Toronto laneway suite?

Only if it is your own principal residence. Toronto limits short-term rentals to the operator’s principal residence, so you cannot live in the main house and rent the suite short-term.

Sources

Checked October 26, 2026. Rules change; confirm with the municipality before you apply. We are builders, not planners or lawyers.

  1. City of Toronto: Garden suites
  2. City of Toronto: Multiplex housing
  3. City of Toronto: Laneway suites zoning (Ch. 150.8)
  4. City of Toronto: Pre-approved garden and laneway suite plans
  5. City of Toronto: Secondary suites permit guide
  6. City of Toronto: Laneway and garden suite DC deferral
  7. City of Toronto: Short-term rental operators
  8. CMHC: Toronto rental market statistics

Compare other cities

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Comparing Toronto with Eastern Ontario?

Building costs and lot sizes east of Toronto can make an ARU pencil out faster. Ask us what a unit would look like in Kingston, Belleville or Cobourg.