After two long years spent mostly at home, many of us are itching for a fun getaway. Plus, with the epic delays and flight cancellations at Toronto Pearson right now, a road trip has never sounded better.
What to know about the Ontario staycation tax credit
Here’s how the 2022 staycation tax credit works, including what types of accommodations you can claim.
How much is the staycation tax credit?
Ontario residents can claim 20% of eligible accommodation expenses for vacations taken in Ontario between Jan. 1 and Dec. 31, 2022, up to a maximum expense of $1,000 per individual or $2,000 per family. The savings would be up to $200 for an individual or $400 for a family.
Who qualifies for the staycation tax credit?
To be eligible for the staycation tax credit, you must be an Ontario resident on Dec. 31, 2022. Only one person in a family can claim the credit. The claim can include the eligible expenses of a partner/spouse and eligible children.
What travel expenses can you claim for the tax credit?
You can claim accommodation expenses for a leisure stay of less than a month at short-term lodgings like hotels, motels, cottages, campgrounds, bed-and-breakfasts, resorts, lodges and vacation rental properties. (For package tours, you can claim the accommodation portion.) Wherever you stay, get a detailed receipt showing that you, your spouse or common-law partner, or your eligible child paid for accommodations. The issuer of the receipt must be a supplier registered for GST/HST in Ontario.
What’s not eligible for the staycation tax credit?
You can’t claim stays at time-shares or on vehicles that can be self-propelled (no boats or trains, for example). Also not claimable: gas, rental cars, flights, parking, groceries or tickets to attractions. You can’t claim accommodations that you or someone in your family has been reimbursed for, either. And, lastly, the trip must be purely for fun—no work or school trips, or travel that’s eligible for a medical expense tax credit.
Can you claim expenses for more than one trip?
Yes, you can claim 20% of accommodation expenses for multiple trips, up to the yearly maximum mentioned above.
How do you claim the staycation tax credit?
Claim the tax credit when you prepare your 2022 personal income tax return in 2023. For more details on the staycation tax credit, visit the Ontario government website.
