Staycation tax credit – Ontario Staycation | How do tax credits work
With the new, temporary Ontario Staycation Tax Credit, residents planning a holiday in Ontario in 2022 might get up to 20% back on eligible accommodation charges.
The temporary Ontario Staycation Tax Credit allows eligible Ontario residents to recover 20% of qualified lodging expenses for vacations taken in Ontario between January 1 and December 31, 2022, up to a maximum of $1,000 for an individual and $2,000 for a family. As a result, you can save up to $200 or $400 depending on the option you choose.
How to Apply for the Ontario Staycation Tax Credit
Residents of Ontario who take a leisure trip in the province and stay at an authorized lodging can claim this refundable credit when filing their personal income tax returns in 2022. Visit ontario.ca/staycation for more information on approved accommodations.
Explore Ontario safely and heed public health recommendations. Please check covid-19.ontario.ca for the most up-to-date information.
How does the staycation tax credit works?
The temporary Ontario Staycation Tax Credit for 2022 is designed to encourage Ontario families to explore the province while also assisting the tourist and hospitality industries in recovering from the financial effects of the COVID-19covid 19 epidemic.
When completing their personal Income Tax and Benefit Return for 2022, Ontario individuals can claim 20% of their qualified lodging costs, such as a stay at a hotel, cottage, or campground. Individually, you can claim up to $1,000 in eligible costs, or $2,000 if you have a spouse, common-law partner, or eligible children, for a total refund of up to $200 or $400 for a family.
About 1.85 million Ontario families will benefit from the credit, which is expected to cost $270 million.
Eligibility requirements for the staycation tax credit
If you live in Ontario on December 31, 2022, you are entitled to 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 costs.
Expenses that qualify
You can claim the Ontario Staycation Tax Credit for lodging expenses for a leisure stay in Ontario of less than a month at a short-term lodging or camping facility, such as a motel or a campground.
- Bed-and-breakfast establishment
Timeshare agreements, as well as stays on a boat, train, or other self-propelled vehicles, are generally not considered short-term accommodations.
The tax credit is only valid for leisure stays that take place between January 1, 2022, and December 31, 2022, regardless of when the stays are paid for. Business travel is excluded from the tax credit.
Expenses for lodging must also include:
- Have been paid for by you, your spouse or common-law partner, or your eligible child, as detailed on a detailed receipt – have been subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as detailed on a detailed receipt – have not been reimbursed to you, your spouse or common-law partner, or your eligible child, by anyone, including a friend or an employer
You can claim any of the following expenses as long as all other prerequisites are met:
- lodging for a single trip or multiple trips, up to a maximum expense limit of $1,000 per person or $2,000 per family – accommodations booked directly with the accommodation provider or through an online accommodation platform – the portion of the expense required to gain access to the accommodation – the accommodation portion of a tour package expense
How can I get my credit?
For any eligible expenses you incur, you must keep thorough receipts. All of the following information should be included on such receipts:
- The name of the payor – the location of the accommodation – the amount that can fairly be deemed to be for the accommodation component of a stay – the GST/HST paid – the date of the stay
- You can claim the credit on your 2022 Individual Income Tax and Benefit Return.
The Ontario Staycation Tax Benefit is a personal income tax credit that is refundable. This implies that if you qualify, regardless of whether you owe income tax in 2022, you can receive this tax credit.
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