“Staycation” Tax Credit for 2022 Tax Year
The new tax credit is designed to incentivize people to take vacations and getaway within Ontario.
Ontarians who are eligible for the tax credit will be those planning a getaway within the province of Ontario during the 2022 tax year.
Those who partake in a “staycation” will receive a 20% personal income tax credit on eligible accommodation for vacations taken between January 1 and December 31, up to a maximum claim amount of $1,000 per individual and $2,000 per family. They will receive a maximum credit of $200 or $400 respectively.
Eligible Ontarians will be able to apply for the refundable credit when they file their 2022 Personal Tax Returns, regardless of if they owe any taxes.
According to government documentation, eligible accommodation criteria would be:
- The stay occurring between January 1 and December 31 of 2022
- Incurred for leisure
- Paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child
- Stay is less than a month in length at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast, cottage or campground in Ontario
- Not previously reimbursed to the tax filer, their spouse or common-law partner, or their eligible child, by any person, including by a friend or employer
- Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST)
This tax credit is to help boost the tourism sector in Ontario following COVID-19 while also providing an estimated $270 million in support to families.