Looking for a getaway? The Ontario government is willing to pay you to do your vacationing in Ontario in 2022.
The “Ontario Staycation Tax Credit” was announced on Thursday during the government’s Fall Economic Statement. The goal is to encourage Ontarians to travel overnight within the province, spending their money to help rebound the tourism industry which was devastated during the pandemic.
HOW DOES IT WORK?
Those who live in Ontario would get a 20% personal income tax credit on eligible accommodations between January 1 and December 31, 2022 for a maximum of $1,000 for an individual and $2,000 for a family. This would provide a maximum credit of $200 or $400.
Ontario residents would apply for this refundable credit when they file their 2022 personal tax returns.
According to the government, an eligible accommodation expense would have to be:
- For a stay of less than a month at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario
- For a stay between Jan. 1 and Dec. 31 of 2022
- Incurred for leisure
- Paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt
- Not reimbursed to the tax filer, their spouse or common-law partner, or their eligible child, by any person, including by a friend or an employer
- Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt.
The government said this tax credit will help tourism and hospitality recover and encourage Ontarians to explore the province.
WHAT EXACTLY DOES THIS MEAN?
Well, it means you get money back on your taxes just by vacationing in Ontario! You could head to Kingsville, Ontario, stay at The Grove Hotel for a few nights and take in experiences like the award winning Wine Trail Ride cycling tour. Come tax time, your credit will pretty much pay off your Wine Trail Ride tickets!