Ontario Staycation Tax Credit

Ontario Staycation Tax Credit is a temporary tax credit for 2022 tax year which aims to encourage tourism in Ontario following the devastating blow to the tourism and hospitality sector by the COVID-19 pandemic. The Ontario Government estimates that the credit will provide an estimated $270 million in support to about 1.85 million families (source: ontario.ca).

The Ontario Staycation Tax Credit is refundable tax credit which means eligible individuals can receive the tax credit regardless of taxes owed. Residents of Ontario can claim up to 20% of their eligible 2022 accommodation expenses for a leisure stay for a duration of less than one month on their income tax and benefit return for the tax year.

Maximum eligible amounts are as follows:

$1000 for individuals

$2000 for the individual with spouse or common-law partner, or eligible children

To be eligible, the individual must be a resident of Ontario on December 31, 2022. Only one individual per household can claim the credit. For example an individual with a spouse or a common-law partner and an eligible child would claim the credit for the entire family. The spouse can not claim partial amounts on their income tax and benefit return.

Eligible expenses which can be claimed under the Ontario Staycation Tax Credit are short-term accommodation or camping accommodation, such as:

Hotel

Motel

Resort

Cottages

Lodge

Bed and breakfast

Campground

Vacation Rental Property

Additional eligibility requirements are:

If the accommodation is part of a package, only the accommodation portion of the package can be claimed

The expense should be limited only to the portion necessary to have access to the accommodation

Accommodations were booked either online or directly by the accommodation provider

The accommodation provider or the online platform where the reservation was made must provide a detailed receipt which clearly states the name of the payor, location of the accommodation, charge for the accommodation portion of the stay, GST/HST paid, and the duration of stay

Expenses which can not be claimed are:

Accommodations at a time-share, a boat, train, or other self-propelled vehicles

Airfare, car rental, fuel, parking, groceries, admission tickets to local attractions

Accommodation expenses which may have been refunded to you either by an employer, a child, or by a friend or relative

Accommodation expenses incurred for employment, work related travel, school or other educational activities, or to seek medical attention (to be claimed under medical expense tax credit)