For Ontario residents there’s never been a better time to plan a staycation! As part of the Ontario government’s plan to emerge from the pandemic stronger than ever, they are encouraging travel within the province with a new Ontario Staycation Tax Credit. If you’re planning a getaway in Ontario you could get back up to 20 per cent on eligible accommodation expenses at hotels, cottages, campgrounds and other short-term accommodations. Ready to rediscover Ontario? Here’s everything you need to know about the Ontario Staycation Tax Credit.
The Ontario Staycation Tax Credit is temporary and aims to encourage Ontario families to explore the province, while helping the tourism and hospitality sectors recover from the financial impacts of the COVID-19 pandemic.
With the credit, you can claim 20 per cent of your eligible accommodation expenses. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family.
Who is Eligible?
You are eligible to claim the credit if you’re an Ontario resident on December 31, 2022.
Only one individual per family can claim the credit for the year. Your claim can include the eligible expenses of your spouse or common-law partner and your eligible children. If you do not have a spouse, common-law partner, or eligible child, you can claim your own eligible expenses for the credit.
You can claim the Ontario Staycation Tax Credit for accommodation expenses of less than a month in Ontario, at a short-term accommodation such as a:
- Bed-and-breakfast establishment
The tax credit only applies to leisure stays between January 1, 2022, and December 31, 2022, regardless of the timing of payment for the stays. For more details on eligibility, read Ontario’s full guide.
How to Claim the Credit
You must keep your detailed receipts for any eligible expenses you incur. Those receipts should include at least all the following information:
- the location of the accommodation
- the amount for the accommodation portion of a stay
- the GST/HST paid
- the date of the stay
- the name of the payor
You can claim the credit on your personal Income Tax and Benefit Return for 2022. The Ontario Staycation Tax Credit is a refundable personal income tax credit. This means that if you are eligible, you can get this tax credit regardless of whether you owe income tax for 2022.
Ontario is home to several family attractions, secluded getaways, breathtaking views and other amazing destinations, so what are you waiting for? Start planning today!