For Ontario residents looking to do some traveling this summer, a temporary tax credit offers some serious incentives for keeping vacations local. The Ontario Staycation Tax Credit for 2022 allows the province’s residents to receive credit for up to 20 percent of accommodation expenses in Ontario—including stays at hotels, resorts, lodges, campgrounds, and more.
Here's everything you need to know—plus some amazing vacation ideas to help get you inspired. From yurts to cabins to campsites and luxury city spas—your options for adventure (or relaxation) this summer are endless.
What's included in the staycation tax credit?
The credit, which can be claimed when filing your personal Income Tax and Benefit Return for 2022, applies to leisure stays in Ontario of less than a month, at a short-term accommodation or camping site. Basically, any spot you stay this year will earn you cash back come tax return time. Ontario residents can get back up to $200 (on expenses of up to $1,000) as an individual or up to $400 (on expenses of up to $2,000) if traveling with a spouse, common-law partner, or eligible children.
who can claim the Ontario staycation tax credit?
If you're an Ontario resident you're in luck! Only one individual per family can claim the credit, but your claim can include those eligible expenses of their spouse, common-law partner, and eligible children. It covers a wide range of accommodations in the region, including hotel, motel, resort, lodge, bed-and-breakfast, cottage, campground, and more. It does not include timeshare agreements or overnight stays on a boat or a train. It also only applies to leisure travel—business trips aren't eligible. So start planning your great Ontario road trip now with your friends, family, or partner and check out the following ideas for inspiration...
where can i go to take advantage of the Ontario tax credit?
The offer provides a compelling reason for Ontarians to spend some time exploring their backyards this year. A few staycation ideas for those looking to earn this credit include:
- A stay at one of these 6 Indigenous-owned hotels, yurts, and cabins.
- A fishing lodge vacation in Sunset Country.
- A family getaway at a lodge in Superior Country.
- A stay at one of Sault Ste. Marie’s waterfront hotels.
- A camping excursion in Algoma County.
- A stay at one of these 8 cozy accommodations in Sudbury.
- A stay in one of Northeastern Ontario's best design-savvy motels while exploring the region's charming historic small towns.
- A camping trip to one of Northern Ontario's must-visit provincial parks in 2022.
what do i need in order to claim my staycation tax credit?
Just hang on to those receipts! To be eligible, those claiming the credit must present a detailed receipt showing the stay was subject to Harmonized Sales Tax (HST). It’s also a refundable personal income tax credit, meaning the tax credit can be received whether or not you owe income tax for 2022.
Full details on the Staycation Tax Credit can be found on Ontario’s Ministry of Finance site.