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How To Take Advantage of the Ontario Staycation Tax Credit

Key information about the provincial tax rebate and how you can benefit from taking a trip nearby

A family are standing at a lookout. There is a brick pillar that is a few feet high with wooden beams forming a fence on either side of it. In front of it is a metal fence. There is a man in a pink button-up short sleeve shirt, jeans and sneakers, a woman in a denim dress with a beige shoulder bag slung over her one shoulder. There are two small kids with them. There is a little girl in a backless pink dress with stripes, and a boy in black shorts, a red T-shirt and sandals. They are all admiring the view in front of them, which is of a river and trees.

To help Ontario’s tourism industry recover from the impact of Covid-19, residents are encouraged to vacation locally and spend time at beautiful and historic sites close to home. And in 2022, they’ll enjoy a special refundable tax credit for it, too.

What is the Ontario Staycation Tax Credit?

Tourism took a hard-hit from Covid-19. The Tourism Industry Association of Ontario (TIAO) reports that seven in 10 Ontario tourism businesses would benefit from loan relief since the beginning of the pandemic in March 2020.

The temporary Ontario Staycation Tax Credit, available from Jan. 1 to Dec. 31, 2022, encourages Ontarians to take trips within the province to help hospitality and tourism industries recover.

If you’re a resident of the province as of Dec. 31, 2022, you’re eligible for the credit on your personal income tax returns. But only one individual per family can submit it for the year.

How much can you claim?

Residents can apply up to 20 percent of eligible accommodation expenses, including hotels, motels, resorts, lodges, bed and breakfasts, cottages and campgrounds.

But there are some exceptions, like timeshare agreements or stays on a boat, train or other self-propelled vehicle.

An individual can declare up to $1,000 total from one trip or multiple trips, while one member of a couple or family can claim up to $2,000. The tax credit will provide a maximum refund of $200 and $400, respectively.

What kind of trips apply?

The Ontario Staycation Tax Credit applies to short-term leisure stays of less than one month.

You must provide detailed receipts of expenses, outlining the location of the accommodation, amount paid, GST/HST, dates of the stay and the name of the purchaser.

In this effort, the provincial government estimates that the Ontario Staycation Tax Credit will return about $270 million to the pockets of 1.85 million families.

And by encouraging Ontarians to explore their own province, it will deliver a much needed boost to the economy, too.

Be prepared

A CAA Travel Consultant can help you find accommodations applicable for the Ontario Staycation Tax Credit. They can also ensure your travel insurance policy is up-to-date in case you need to cancel. Visit CAA Travel Insurance for more information.

Image credit: Destination Ontario