To help the tourism and hospitality sectors recover, and encourage Ontario families to explore the province, the government is proposing a new temporary Ontario Staycation Tax Credit for 2022. The credit would provide an estimated $270 million to support over one-and-a-half million families to further discover Ontario.
Anyone planning a getaway within the province in the 2022 tax year could be eligible under the new “Ontario Staycation Tax Credit” program.
This will be a personal refundable tax credit computed as 20% of eligible accommodation expenses in Ontario. The maximum amount of expenses on which the credit will apply is $1,000 for an individual and $2,000 for a family. Individuals can claim this credit on their 2022 personal tax returns.
This is good news if you’re looking to getaway to a cottage next year. Note the eligibility below and be sure that your receipt outlines HST to be eligible for the tax credit.
Eligible accommodation expenses will include the following:
- For a stay of less than a month at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario
- For a stay between Jan. 1 and Dec. 31 of 2022
- Incurred for leisure
- Paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt
- Not reimbursed to the tax filer, their spouse or common-law partner, or their eligible child, by any person, including by a friend or an employer
- Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt.