With the Canadian federal government advising against non-essential international travel, and the cost of living going up (including what’s on your grocery bill), you may be happy to hear that there is one break headed your way.
The good news: if you’re planning a staycation in Ontario in 2022, you could be eligible to claim it come tax season. The provincial government made the announcement earlier in November, calling the initiative “Ontario Staycation Tax Credit” program with the goal of boosting the local economy as well as the tourism and hospitality sector.
What you can expect from the Ontario Staycation Tax Credit
Ontarians could get 20 per cent personal income tax credit on eligible accommodations between January 1 and December 31, 2022, up to a maximum claim of $1,000 per individual or $2,000 for a family unit, for a maximum credit of $200 or $400, respectively.
Just be sure to hold onto your receipts so that you have the necessary documentation for when the 2022 tax season rolls around.
What you need to be eligible for the 2022 Staycation Tax Credit
In order to qualify for the credit, the stay would have to meet some of the following criteria:
- the staycation lasts less than a month at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario
- the staycation must take place between Jan. 1 and Dec. 31 2022
- it must be incurred for leisure (not work purposes)
- it must be paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt
- must be subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt
If you’re looking for ideas of where you can take the said staycation, thankfully there are are no shortage of great options in the province.