Have Tax Credit, Will Travel

So you’ve heard about the Ontario Staycation Tax Credit and are wondering how you can save 20 per cent in accommodation expenses on your next Ontario getaway? Join the club! This year will surely go down in history as the year of the staycation for Ontario residents, and here in Ontario’s Highlands we couldn’t be happier.

Stretching thousands of square kilometres from the majestic Ottawa River to the wilds of Haliburton Highlands, Ontario’s Highlands offers some of the best staycation experiences in Ontario, with a focus on nature getaways, small town rambles, and adrenalin circulating adventures.

Read on to learn more about the Ontario Staycation Tax Credit and how to claim yours.

What is the new Ontario Staycation Tax Credit?

The Ontario Staycation Tax Credit was created to encourage Ontario families to explore the province and be part of the tourism and hospitality sectors’ recovery from the COVID-19 pandemic.

The program provides a 20 per cent tax refund for accommodation expenses of up to $1,000 for an individual or $2,000 for spouse, common-law partner, or eligible children. That equates to a $200 tax credit for an individual or a $400 tax credit for a couple applied to your 2022 income tax return.

Who qualifies to claim the tax credit?

If you lived in Ontario on Dec. 31, 2021, you qualify for the Ontario Staycation Tax Credit.

What accommodations are eligible for the tax credit?

Eligible accommodations include overnight stays (for up to one month) in a hotel, bed and breakfast, lodge, resort, motel, or cottage or campground between Jan. 1, 2022 and Dec. 31, 2022. Please note the Ontario Staycation Tax Credit only applies to those accommodation charges where the amount of HST paid is itemized on your bill.

How do I claim my tax credit?

Your tax credit is claimed on your 2022 Personal Income Tax submission. You must keep your receipts from your accommodation booking to submit with your taxes, or keep on hand in the event they are requested. Please note the Ontario Staycation Tax Credit only applies to those accommodations which charge HST and the HST must be itemized on your bill.

I booked my accommodation through Airbnb or another third-party booker, does it qualify?

If you booked your accommodation through a third-party booking platform it will still qualify for the Ontario Staycation Tax Credit, so long as the booker charges HST and also itemizes the HST on their receipts.

For more details about the Ontario Staycation Tax Credit for 2022 please visit the provincial website here.