Ontario Staycation Tax Credit
The provincial government has announced a new tax credit for Ontarians who plan to take short-term vacations within the province. The Staycation Tax Credit provides Ontario residents with a 20 per cent refundable tax credit on eligible accommodation expenses incurred from January 1, 2022 to December 31, 2022.
Ontarians can claim eligible accommodation expenses of up to $1,000 as an individual or $2,000 as a family, providing a maximum credit of $200 or $400, respectively.
Eligible individuals include those who are Ontario residents on December 31, 2022.
The Staycation Tax Credit can only be claimed by one individual per family on their 2022 Personal Income Tax and Benefit Return.
Eligible expenses include vacation accommodations for a stay of less than a month in Ontario that were fully paid, subject to applicable federal and provincial sales taxes, and were not reimbursed.
Eligible short-term accommodations in Ontario include:
- Bed-and-breakfast lodging establishment; and
- Cottage rentals.
Ontario residents who plan to claim the Staycation Tax Credit must keep their receipts for eligible expenses. A detailed receipt should include all of the following:
- Location of accommodation;
- Amount paid for the accommodation portion of the stay;
- Applicable federal and provincial sales taxes paid;
- Date of stay; and
- Name of the individual who paid for the stay.
W&P is Here to Help
Our team at Williams & Partners is available to provide further information and assistance to individuals with concerns regarding this tax credit. If you have any questions or concerns, please do not hesitate to contact our office.
Yours very truly,
Williams & Partners