2022 is the year for travel. Across the world, countries are reopening their borders and some are encouraging the flood of tourism that has been pent up from the COVID-19 pandemic. One of the places that is trying to capture interest won’t require a flight for most residents, and boasts glorious beaches, sparkling lakes, and a range of activities for families, couples and solo travellers alike. Ontario is revamping their tourism industry with a plan that will dually allow citizens to travel and get outdoors, while generating revenue for Ontario’s tourism sector.
The Ontario Staycation Tax Credit
This tax credit allows Ontario residents to claim 20% of their eligible 2022 accommodation expenses when filing their personal Income Tax and Benefit Return for 2022. The credit will provide an estimated $270 million in support to about 1.85 million Ontario families through the renewal of vital tourism sectors across Ontario.
Consider these types of eligible accommodation for your next staycation:
Hotel, Motel, Resort, Lodge, Bed and Breakfast, Cottage, Campground, Vacation Rental Property
What can I not claim through this tax credit?
This tax credit is meant to be put towards accommodation expenses associated with travelling throughout Ontario, and there are some restrictions to be aware of when deciding to plan a staycation:
Travel expenses that are not short-term accommodations or camping accommodations, such as car rentals, fuel, flights, groceries, parking, or prices of admission into local attractions and places of interest
Accommodation expenses reimbursed to you, your spouse or common-law partner, or your eligible child, by any person, including by a friend or an employer
Expenses that are incurred for school or educational purposes, or for a work, employment or business purpose, or that can be claimed for a medical expense tax credit
How much can I claim?
Individuals can claim up to $1000 over a single trip or multiple trips while families can claim up to $2000. After filing your taxes, you can get back up to $200 as an individual or $400 as a family.
How do I make sure I will be able to claim this on my taxes next year?
You can claim the credit on your personal Income Tax and Benefit Return for 2022.
The Ontario Staycation Tax Credit is a refundable personal income tax credit. This means that if you are eligible, you can get this tax credit regardless of whether you owe income tax for 2022.
Let’s Get Travelling!
Interested in taking advantage of this tax credit and exploring Ontario this summer? Here are some of the most popular destinations across Ontario, from day trips from the Greater Toronto Area (GTA), to longer vacations for individuals and families. Learn more about eligible accommodations atontario.ca/staycation.
Chiefswood Park Six Nations
Located just outside Hamilton, Chiefswood Park Six Nations allows you to customize your camping experience, while learning about authentic Haudensaunee culture from this women and Indigenous owned business. Choose from luxury cabins or traditional style tent camping along the banks of the Grand River, and stay with up to six guests.
While you’re staying there, or if you’re coming up for the day, make sure you check out the experience packages offered by Six Nations Tourism to make the most of your visit. Choose from cultural, historical, artistic and adventure options, or combine them to make sure you fully explore the rich community around Chiefswood Park.
Niagara Falls is one of southern Ontario’s most famous spots for a reason; the stunning backdrop of the falls combines with the vibrant scene and energy of the Clifton Hill strip to leave travellers alike with endless options once there.
For family friendly accommodation, check out either Great Wolf Lodge or the Sheraton Fallsview Hotel. Great Wolf Lodge is designed with families in mind, and even boasts a children’s arcade and waterpark inside the hotel. The Sheraton is located in the heart of the action on Clifton Hill, and you can purchase water park passes to the connected park. Families should consider purchasing the Clifton Hill Fun Pass to get big discounts on attractions such as the ferris wheel, mini golf, haunted houses and more!
Looking to see what else the Niagara region has to offer? The Niagara-on-the-Lake wine region is one of Ontario’s largest wine producers with 39 wineries, 23 restaurants, and 5 hotels and inns. Opt for a stunning experience at any of these accommodations, or find an Airbnb or Vrbo with a larger group to make the most of your stay.
Craving a beach vacation? Look no further than Wasaga Beach, located outside the Blue Mountains, just over an hour and a half from Toronto. Wasaga Beach is a great destination year round, with options like Golfing, skydiving, caving, hiking, boating, fishing, biking, canoeing, snowmobiling, snowshoeing, cross country skiing, sleigh rides, and more! Undoubtedly their largest season is throughout the summer when their white sand beaches and beach town fun comes to life.
When staying at Wasaga Beach, there are a wide variety of options to choose from. Opt to stay on the beach for quick access to all the amenities and be right in the action, or move further away from the hustle and bustle and experience the quiet serenity of the Grey Bruce county.
Camping in Provincial Parks
Ready to begin exploring the world of camping? Head on up to Algonquin Provincial Park where you can customize your experience for your level of comfort with the outdoors. Algonquin is located three hours north-east of Toronto, or three hours west of Ottawa. Book a stay at an adventure lodge and be introduced to canoeing, kayaking, hiking and more while staying out of the backcountry. Book a guided canoe trip for up to a week with a large group or solo and have the stress of planning and packing taken care of for you. Or opt to plan your own adventure through the endless lakes and rivers that make up this popular destination. Some summer camps are even offering stays in the heart of Algonquin throughout June and September!
Looking to fully immerse yourself in the outdoors? Consider a backcountry camping trip up in Temagami River Provincial Park. This river is located 40km north of Sudbury in some pristine Ontario wilderness. The Temagami River features crystal clear waters with an icy blue colour, uninterrupted days of paddling, and a quiet serenity. Grab a group of friends, some canoes, and book your campsite reservations through Ontario Parks.
Camping Tip: In the peak months of July and August, campsite reservations at both parks can fill up quickly! Plan your trip at least a month in advance in order to avoid disappointment on your route.
Brighton Beaches/Big Apple
Month Stays: Rent a Cottage
Sault Ste. Marie
If you have questions about claiming this tax credit you can contact Canada Revenue Agency (CRA):
Phone at 1-800-959-8281.
At a tax centre Find your Local Tax Centre
Safely discover Ontario and follow public health advice for the region you are visiting. For the most up-to-date information, please visit: covid-19.ontario.ca.