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A Comprehensive Guide to the Ontario Travel Tax Credit


As we get closer to the Christmas holidays, some Ontarians will get busy packing their bags to travel and explore new destinations. But have you considered discovering the best of Ontario and saving money on the go? With Ontario Travel Tax Credit, you can save on local stays and holidays. This is a temporary benefit and won’t be here for long. So if you haven’t already taken advantage of the Government of Ontario’s Staycation Tax Credit for 2022, we have your back. Here’s a comprehensive guide on the tax credit with all your top questions answered.  

When it comes to travel plans, many of us don’t think about local getaways or exploring places near. This Christmas, get away from the humdrum of your daily busy lives to enjoy the finest of holidays and experiences that this province has to offer. Gather your friends and family, set out on a winter holiday, discover some of the best attractions and support the local tourism and hospitality sector. Let’s get planning. 

Is there a tax credit for vacationing in Ontario, and how does it work? 

Yes, absolutely; there is a tax credit available for those vacationing in Ontario. This is a temporary initiative by the Government of Ontario to encourage families to explore the province while supporting the tourism and hospitality sectors within the region.

Ontario Staycation Tax Credit is available to the residents who choose to explore locally and support accommodations within the region. All staycation, which is shorter than a month, is eligible for the tax credit. This can be claimed along with your regular tax filings for 2022. 

What Expenses are eligible for Ontario Staycation? 

Ontario Staycation Tax Credit is applicable for residents of Ontario Province as of December 31, 2022. Any leisure stays in Ontario for less than a month for a value of up to $2000 can be claimed as tax credits. These expenses include:

  • Hotel or motel stays
  • Resort stays
  • Lodge or bed and breakfast stays
  • Cottage getaways, including Airbnb
  • Camping accommodation

Check Out Eastern Canada Tour Packages here

How do I claim travel expenses on my taxes in Canada?

Ontario travel tax credits can be claimed while filing for your 2022 personal income tax and benefit return. You must save up the detailed receipts for any eligible expenses you may have incurred. The receipt must include information on the GST/HST paid, the date of your getaway, the location, and the name of the person who paid. 

How much can I claim for travel expenses?

If you are an Ontario resident, this is one of the best perks to take advantage of. You can claim 20% of your eligible 2022 accommodation when filing your personal Income Tax and Benefit Return for 2022. 

Individuals can claim up to $1,000, which will make you eligible to get back up to $200

Families can claim up to $2,000, which will make you eligible to get back up to $400

In Summary, you can benefit from the tax credit for vacationing in Ontario, provided you are eligible under the below terms:

  • Getaway must be between January to December 2022
  • You must be a resident of Ontario as of 31st December 2022
  • Can be claimed only for stays less than a month for a value of up to $2000 for families and $1000 for individuals
  • Stay eligibility must be for a leisure stay at a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage, or campground in Ontario.
  • No business expenses can be claimed. 
  • To claim the tax credit, ensure you have saved up the detailed receipts indicating the expense and other information.

From Downtown Windsor to the shopping districts in Ottawa, there are plenty of places to explore in Ontario.  So whether you plan a romantic getaway or a family staycation, look for places within Ontario and enjoy the benefits of being a resident. Your long overdue vacation just became better with this incredible saving. This is a great incentive to support local businesses and the tourism sector. 

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*Disclaimer: This article is for information purposes only. Not to be considered as Tax Advice. We recommend you speak to a qualified Tax Consultant on how to use the Ontario Staycation Tax Credit.

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