Ontarians can get hundreds of dollars in new Staycation Tax Credit kicking in this weekend

Ontarians, rejoice! A new Staycation Tax Credit will allow you to claim a portion of your expenses if you spend your vacay right here in the province, and it kicks in on New Year’s Day.

Earlier in November, the Ontario government proposed a brand new temporary Ontario Staycation Tax Credit for the year 2022.

“This Personal Income Tax (PIT) credit would provide Ontario residents with support of 20 per cent of eligible 2022 accommodation expenses of up to $1,000 for an individual and $2,000 for a family, for a maximum credit of $200 or $400, respectively,” officials wrote in their press release.

You might also like:
• Ontario camping sites still have availabilities and here's how to book
• Ontario town named one of the top 25 emerging destinations in the world

Residents of Ontario will be able to apply for the refundable credit when they file their personal income tax returns for the year 2022.

But even if you don’t end up owing any PIT returns, you can still take advantage of the credit if you paid for your eligible accommodation between January 1 and December 31 next year, and stayed there for leisure for no more than a month.

Eligible accommodations include hotels, models, bread-and-breakfasts, lodges, resorts, cottages, and campgrounds in the province.

The expense can be paid by the tax filer, their spouse/common-law partner, or their eligible child, and hasn’t been reimbursed to any of the above parties by anyone — including a friend or employer. As you’d expect, the credit is subject to GST/HST.

As we close off this stressful year, maybe it’s time to start planning that cozy cottage stay or luxurious resort experience you’ve been dreaming of.