Ontario’s Staycation Tax Credit
Ontarians who are planning a short-term vacation within the province this year could be eligible for a tax refund under the new Ontario Staycation Tax Credit program. Introduced in November as part of the 2021 Ontario Economic Outlook and Fiscal Review, the credit aims to boost the province’s tourism industry.
Ontarians may claim a 20 per cent personal income tax credit on eligible accommodation between Jan. 1 and Dec. 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.
To benefit from this tax credit, an eligible expense must be:
for a getaway between Jan. 1 and Dec. 31 of 2022
for a stay of less than a month at an accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario
incurred for leisure; business expenses are excluded
paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt; the expense claimed cannot be reimbursed to the tax filer, their spouse or common-law partner, or their eligible child, by any person, including by a friend or an employer