Ontario Staycation Tax Credit

Ontario Staycation Tax Credit

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated July 13, 2022

With sky-high airline fares and hours-long lineups at airports, you might want to re-imagine your summer holidays. 

The good news is that there are plenty of places to explore here in Canada. And even better, you might be able to keep a little more money in your pocket on your ‘staycation’ thanks to the recently-implemented Ontario Staycation Tax Credit.

Let’s dive in a little deeper into this new credit to find out how it works and how much you can expect to get back at tax time. 

What Is The Ontario Staycation Tax Credit?

The Ontario Staycation Tax Credit was introduced to encourage Ontarians to vacation within the province in an effort to boost the local tourism and hospitality industry following the financial hardships businesses within these sectors suffered throughout the COVID‑19 pandemic.

For stays that take place in 2022, residents of Ontario can claim 20% of eligible expenses for accommodations when filing their income tax returns for the 2022 tax year. Individuals can claim up to $1,000 in eligible expenses, and couples and those with eligible children can claim up to $2,000. In turn, you can get back up to $200 as an individual or $400 as a family based on the 20% claim allowance.

Eligibility Requirements For the Ontario Staycation Tax Credit

In order to qualify for the Ontario Staycation Tax Credit, you must be an Ontario resident as of December 31, 2022. Only one person per household is permitted to claim the tax credit for the 2022 year. You’re allowed to claim eligible expenses of your spouse or common-law partner and any eligible children. 

What Can You Claim Using Your Ontario Staycation Tax Credit?

As mentioned, the tax credit applies to accommodation expenses within Ontario. The stays must be for leisure purposes and can be made for no longer than one month in duration. 

Eligible Expenses 

The following lodging accommodations are eligible for the tax credit :

  • Hotels and motels
  • Short-term vacation rentals
  • Cottages
  • Campsites
  • Resorts
  • Lodges
  • Bed-and-breakfast facilities

Documents Required To Claim Tax Credit

You, your spouse or common-law partner, or your eligible child(ren) must pay for the accommodations to be eligible. You must retain a receipt for the stay to file with your income taxes, which should contain the following information: 

  • Location of the accommodations
  • Date of the stay
  • Cost for the accommodation 
  • GST/HST paid
  • Name of the person paying

Period Eligibility

Leisure stays must take place between January 1, 2022, and December 31, 2022, no matter when the payment for the stays is made.

What Can’t You Claim Using Your Ontario Staycation Tax Credit?

The above list includes several different types of accommodations for leisurely stays, but there are a few expenses that are not eligible for the tax credit.

Ineligible Expenses 

You cannot claim the new tax credit for the following accommodations:

  • Timeshares
  • Stays on a self-propelled vehicle, including boats and trains 
  • Car rentals
  • Flights
  • Expenses for travel, including gas, parking, groceries, and admission to attractions 
  • Reimbursed accommodation expenses to you, your spouse, your common-law partner, or your eligible child(ren)
  • Educational, employment, or business expenses
  • Anything that can be claimed for a medical expense tax credit

How To Apply For The Ontario Staycation Tax Credit

The Ontario Staycation Tax Credit is temporary in nature and is applicable only for the 2022 tax year. All you need to do is make sure your expenses are eligible for the refundable tax credit, then include your claim when you file your 2022 personal income tax return. You can get this tax credit even if you don’t owe any income tax for 2022.

Where Can You Go For a Staycation in Ontario?

There’s no need to cross the border to enjoy a vacation. Ontario offers plenty of options when it comes to holidays. Here are a few ideas to help you decide where to go next that are eligible for the new Ontario Staycation Tax Credit:

Family holidays:

  • Clifton Hill attractions in Niagara Falls
  • Summer and winter fun in Blue Mountain
  • TO CityPass to see famous attractions in Toronto
  • Parliament Hill tours in Ottawa
  • Boating in Friday Harbor
  • Beach vacations in Wasaga Beach
  • Cruising in the 1,000 Islands
  • Great Wolf Lodge, Americana, or Fallsview Indoor Waterpark in Niagara

Couples retreats:

  • Wine tasting in Niagara-on-the-Lake
  • Bed and breakfasts in Prince Edward County
  • Stratford Festival shows
  • Weekend getaways to Casino Rama
  • Luxury Hotels in downtown Toronto
  • Romantic cruises along the Rideau Canal 

Outdoor adventures:

  • Cottage country in Muskoka, the Kawarthas, and Algonquin Park
  • Skiing in Horseshoe Valley
  • Fly fishing in Haliburton
  • Sailing on Lake Superior

Ontario Staycation Tax Credit FAQs

How much can you claim with the Ontario Staycation Tax Credit? 

You can claim 20% of your eligible accommodation expenses made in 2022. Up to $1,000 can be claimed as an individual and up to $2,000 can be claimed by couples (spouses or common-law partners) or eligible children. That means individuals can get back up to $200 and families can get back up to $400.

Is there an Ontario staycation tax credit for 2021?

No, the tax credit applies to the 2022 tax year for accommodations between January 1, 2022, and December 31, 2022.

Is Airbnb eligible for the Ontario Staycation Tax Credit?

Airbnb vacation stays are eligible for the new tax credit as long as the landlord is registered for GST/HST and the accommodations meet all required criteria. That said, Airbnb accommodations made for business purposes are ineligible.

Final Thoughts

The prospect of putting a few hundred dollars back in your pocket may incentivize you to stick around close to home for your upcoming holiday. Luckily, Ontario has a wide range of amazing holiday offerings to choose from to accommodate any type of vacation. Just keep your receipts and file them with your taxes next year to get a few bucks back. 

Rating of 5/5 based on 1 vote.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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