The temporary Ontario Staycation Tax Credit, which will be in effect until 2022, is designed to encourage Ontario families to travel around the province.
When completing their personal Income Tax and Benefit Return for 2022, Ontario residents can claim 20% of their qualified accommodation expenses.
About 1.85 million Ontario families will benefit from the credit, which is expected to cost $270 million.
Who is eligible
If you are a resident of Ontario on December 31, 2022, you are entitled for the credit.
Only one person per family is eligible for the credit each year. The qualifying expenses of your spouse or common-law partner, as well as your eligible children, can be included in your claim. A child who qualifies for the credit will not be able to claim it on their personal income tax and benefit return in 2022.
If you don’t have a spouse, common-law partner, or eligible child, you can still claim the credit for your own qualified expenses.
Eligible expenses
For a leisure stay of less than a month in Ontario, you can claim the Ontario Staycation Tax Credit for accommodation expenses at a short-term or camping accommodation, such as a:
- hotel
- motel
- resort
- lodge
- bed-and-breakfast establishment
- cottage
- campground
Timeshare agreements and stays on a boat, train, or other self-propelled vehicle are not considered short-term accommodations.
The tax credit is only valid for stays between January 1, 2022, and December 31, 2022, regardless of when the stays are paid for. Business travel is not eligible for the tax credit.
The accommodation expenses must also:
- have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt
- have been subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt
- not have been reimbursed to you, your spouse or common-law partner, or your eligible child, by any person, including by a friend or an employer
You can claim any of the following expenses as long as all other prerequisites are met:
- accommodation for a single trip or multiple trips, up to the maximum expense limit of $1,000 as an individual or $2,000 as a family
- accommodations booked either directly with the accommodation provider or through an online accommodation platform
- the portion of the expense that is necessary to have access to the accommodation
- the accommodation portion of a tour package expense
How to claim the credit
You must keep your detailed receipts for any eligible expenses you incur. Those receipts should include at least all of the following information:
- the location of the accommodation
- the amount that can reasonably be considered to be 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.
For full details visit Ontario Staycation Tax Credit | ontario.ca
