Ontario Staycation Tax Credit
Planning an Ontario staycation in 2022? You may be able to claim it on your taxes.
As the COVID-19 pandemic continues, many Canadians are looking to vacation closer to home. If you live in Ontario, you could be eligible to claim your staycation when tax season comes.
The Ontario government is rewarding Ontarians who vacation locally with a new, temporary Ontario Staycation Tax Credit, which comes into effect on January 1, 2022. Announced as part of Premier Doug Ford’s Fall Economic Statement tabled in November 2021, the Staycation Tax Credit is a proposal meant to promote tourism within the province, giving local businesses a boost.
Here’s how it works:
- The province will give Ontario residents back 20 percent of the money they spend on eligible accommodations between January 1 and December 31, 2022 up to a maximum of $1,000 for an individual and $2,000 for a family – for a maximum credit of $200 or $400 respectively.
- Ontario residents can apply for this refundable credit when they file their 2022 personal tax returns. They’ll benefit even if they don’t owe any tax.
- According to the government, eligible accommodations are stays of less than a month at places like hotels, motels, resorts, lodges, bed-and-breakfasts, cottages or campgrounds in Ontario.
- Must take place between January 1 and December 31, 2022
- Must be incurred for leisure, not business
- Must be paid for by an Ontario tax filer, spouse or common-law partner
- Must be subject to Goods and Services Tax (GST) /Harmonized Sales Tax (HST)
Looking for local vacation ideas?
Here are a few links to consider:
Have questions about the new Ontario Staycation Tax Credit? Speak to a Richardson Wealth Investment Advisor.