Ontario's Staycation Tax Credit Is Expiring This Month & Don't Miss Out On A Cheaper Trip

Time is running out for those hoping to take advantage of the Ontario Staycation Tax Credit. An initiative that lets residents claim up to 20% of accommodation expenses for vacationing within the province.

"You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family," the Government of Ontario stated.

The tax program only applies to accommodation expenses for leisure stays of less than a month in Ontario, at a short-term or camping accommodation.

According to the Ontario government, the following establishments qualify:

• Hotel
• Motel
• Resort
• Lodge
• Bed-And-Breakfast
• Cottage
• Campground
• Vacation Rental Property

It's worth noting that the tax credit applies to leisure stays between January 1, 2022, and December 31, 2022, regardless of the timing of payment for the visits.

The tax credit cannot be claimed for:

• Travel expenses such as car rentals, fuel, flights, groceries, parking, or prices of admission into local attractions and places of interest
• Accommodation expenses that have already been reimbursed by friends, family or an employer
• Expenses related to educational or business purposes or those that can be claimed for a medical expense tax credit

Individuals looking to claim the credit can do so when filing their Income Tax and Benefit returns for 2022.

"The Ontario Staycation Tax Credit is a refundable personal income tax credit," the government states. "This means that if you are eligible, you can get this tax credit regardless of whether you owe income tax for 2022."

This article's cover image was used for illustrative purposes only.