Ontario Staycation Tax Credit
Are you an Ontario resident who vacationed within the province in 2022? You might be eligible for the Ontario Staycation Tax Credit. Keep reading to learn more about how to take advantage of this refundable tax credit!
What is the Ontario Staycation Tax Credit?
Introduced in November 2021 by Ontario’s provincial government, the staycation tax credit incentivizes Ontarians to explore the province. This tax credit also supports the recovery of the tourism and hospitality industries, which have been struggling since the COVID-19 pandemic.
Who is eligible for the staycation tax credit?
To claim the credit, you must meet the following criteria:
- you were a resident of Ontario on December 31st, 2022
- you, your spouse or common-law partner, or your eligible child paid for the expenses
- your accommodation was for leisure/vacation purposes
- your stay was between January 1st, 2022 and December 31st, 2022 (regardless of when payment was processed)
This is a refundable tax credit. Therefore, claims can be made whether or not your own income tax for 2022.
What can you claim?
The Ontario Staycation tax credit applies to accommodation expenses for vacations within the province. It covers expenses for single or multiple trips up to $1,000 for individuals or $2,000 per family at a 20% rate. This means you may get up to $200 back as an individual or $400 as a family.
Eligible accommodations include hotels, motels, resort lodges, bed-and-breakfasts, cottages, and even vacation rental properties. However, the credit only covers the accommodation portion of a tour package or the portion of the expense that is necessary to have access to accommodations.
What expenses are not included in the staycation tax credit?
This tax credit targets accommodations with the specific purpose of supporting the tourism and hospitality industries. For that reason, the following expenses are not included:
- Admission into local attractions and places of interest
- Accommodation expenses reimbursed by any person, including a friend or an employer
- Expenses eligible for medical expense tax credit
- Groceries and meals during your stay
- Non-leisure expenses such as those incurred for school or educational purposes, or for a work, employment or business purpose,
- Stays on boats, trains or other self-propelled vehicles
- Timeshare agreements
- Travel expenses related to car rentals, fuel, flights or parking
What documents do I need?
To claim this credit, you will need to provide detailed receipts, including:
- location of the accommodation
- the amount that specifically relates to the accommodation portion of your stay
- breakdown of GST/HST paid
- the date of your stay – confirming that it happened between January 1st and December 31st, 2022
- the name of the payor – you, your spouse or common-law partner or eligible child
How to claim the credit?
The Ontario staycation tax credit can be claimed on your 2022 income taxes. If you have questions or would like more information on how to claim this credit, contact our tax planning services.