Ontario’s Finance Minister announced the province’s economic outlook on Thursday, and with it some good news for those who are itching to travel in their own backyard.
The province is introducing the Ontario Staycation Tax Credit in 2022. It will be a personal tax credit that can be claimed on 2022 annual taxes.
The credit will provide Ontarians with 20% of eligible accommodation expenses up to $1,000 for individuals and $2,000 for families. People filing for the tax credit would see up to $200 return for individuals and up to $400 return for families.
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Ontarians who do not owe personal income tax can still file for the Ontario Staycation Tax Credit.
According to the government, to be eligible for the tax credit:
- Your stay must be less than a month
- Your stay is in an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario
- Your stay is between January 1 and December 31 2022
- Is a trip for leisure
- The trip is paid for by the person filing taxes in Ontario as per a detailed receipt. Eligible spouse, partner or child can also pay for the trip.
- The trip has not been reimbursed to the tax filer by a friend, family member or employer
- The trip is subject to GST and HST as per a detailed receipt.
The government said that the goal of this tax credit is to help boost the province’s tourism and hospitality sectors. Both industries were hit hard by the COVID-19 pandemic.
Ontario said that this tax credit will provide about $270 million to support more than one million Ontario families.