Ontario Staycation Tax Credit 2023: Overview and Claim Process

Updated on June 14, 2024

Discover key details about the Ontario Staycation Tax Credit 2023, including what it is and how to claim it. This article provides comprehensive information on the credit, guiding you through the process and offering other important insights.

Ontario Staycation Tax Credit

The Ontario Staycation Tax Credit, initiated by the provincial government, aims to revitalize the tourism and hospitality sectors within the province. Specifically designed to aid recovery from pandemic-related setbacks, this credit encourages Ontario families to explore their own province.

It’s important to note that this tax credit is exclusive to Ontario residents. Furthermore, only one individual per family is eligible for the claim, though they can also include expenses for their spouse or eligible children. For further insights, detailed information about the Ontario Staycation Tax Credit can be found on the official web portal of the Ontario Government.

Ontario Staycation Tax Credit 2023

NameOntario Staycation Tax Credit
TypeTax Credit
ProvinceOntario
BeneficiariesResidents of Ontario
Maximum Claim Amount (individual)$200
Maximum Claim Amount (if having a spouse/eligible children)$400
Websiteontario.ca

What is the Ontario Staycation Tax Credit?

Eligible residents in Ontario can take advantage of the Ontario Staycation Tax Credit, allowing them to claim up to 20% of their accommodation expenses for the year 2022. Individuals have a maximum expense limit of $1,000, and if they include the expenses of their spouses or eligible children, the maximum amount increases to $2,000.

As stated, individuals can receive a reimbursement of up to 20% of their qualifying expenses, allowing for a maximum individual claim of $200 and a family claim of $400. To be eligible, individuals must be residents of Ontario on December 31, 2022.

This tax credit aims to incentivize Ontario families to engage in provincial travel and exploration by offering credits for qualifying expenses like hotel stays, campground visits, or cottage rentals. It’s important to note that expenses related to timeshare agreements and non-leisure activities are not eligible for the tax credit.

How to Claim Ontario Staycation Tax Credit?

You can claim the staycation tax credit through your personal income tax and benefit return. It’s a refundable personal income tax credit, meaning you’ll receive the credit even if you don’t owe income tax. However, it’s crucial to ensure that your expenses meet the conditions set by the Ontario Government before making a claim.

If you have any doubts or questions about the tax credit, feel free to reach out to the CRA via phone or at a tax center. According to the information available, this significant tax credit is anticipated to allocate $270 million to approximately 1.85 million families.

What can be considered as Eligible Expenses?

As we’re aware, this substantial tax credit enables individuals to recover up to 20% of their accommodation expenses. It’s important to note that not all accommodation expenses qualify for the Staycation Tax Credit. In addition to details on the tax credit amount and eligibility criteria, the Ontario government has also furnished a list of accommodation expenses that are deemed eligible.

Accommodation expenses eligible for the tax credit may encompass:

  • Bed-and-breakfast establishment
  • Lodge
  • Hotel
  • Vacation rental property
  • Motel
  • Cottage
  • Campground
  • Resort

It’s essential to note that the tax credit applies specifically to leisure stays occurring between January 1, 2022, and December 31, 2022. Additionally, these expenses should be settled by the individuals, their spouses, or eligible children, with the relevant details outlined on the receipt from a supplier registered for GST/HST.

What We Know About the Ontario Staycation Tax Credit

Therefore, if residents meet all the eligibility criteria, they can claim:

  • Accommodation for a single trip or multiple trips
  • Accommodations booked through providers/online platforms
  • The portion of the cost necessary to access the accommodation
  • The accommodation share of a tour expense.

Furthermore, the receipts from suppliers should contain:

  • Location of the accommodation
  • Amount of GST/HST paid
  • Date of the stay
  • Payer’s name
  • The amount deemed as the accommodation portion of the stay

On the flip side, ineligible accommodation expenses, for which individuals cannot claim the tax credit, encompass:

  • Travel expenses not related to short-term accommodation
  • Accommodation expenses reimbursed by any person, be it an employer or friend
  • Expenses incurred for school/education purposes or for work/business/employment purposes.

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