Permit Fee

A charge assessed by a local government for processing a building permit application, typically based on the project's construction valuation, square footage, or type of work.

What Are Permit Fees?

Permit fees are charges assessed by local building departments to cover the costs of reviewing permit applications, conducting plan reviews, and performing construction inspections. Fees are typically calculated based on the project's estimated construction valuation using a standard fee schedule, though some jurisdictions use flat fees for specific categories of work.

How Fees Are Calculated

Most jurisdictions base permit fees on the total valuation of the construction work, using either applicant-provided cost estimates or standardized valuation tables (such as those published by the ICC). The fee schedule is typically tiered — higher valuations result in higher fees, though the per-dollar rate often decreases at higher tiers. Additional fees may apply for plan review, technology surcharges, and specific types of work.

Types of Permit-Related Fees

Beyond the base building permit fee, projects may incur plan check fees (typically 65-100% of the permit fee), fire department review fees, school district fees, park fees, transportation impact fees, utility connection fees, and various other development-related charges. The total fee burden for a commercial project can be substantial — sometimes 3-10% of construction costs in high-fee jurisdictions.

Fee Estimation in Due Diligence

Accurately estimating permit and development fees early in the project planning process is essential for reliable pro forma development. Fee schedules are typically published on building department websites, but the full picture often requires consulting multiple agencies. Unexpected fees can significantly impact project budgets.