Ontario's staycation tax credit just went into effect and here's what that means

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Travel outside of Canada seems like a risky proposition these days and for those who want to visit places closer to home, the Ontario Staycation Tax Credit just started Jan. 1.

The tax credit was announced in November as part of the 2021 Ontario Economic Outlook and Fiscal Review. And like the minimum wage hike, it kicks in at the start of 2022.

Ontario's staycation tax credit comes into effect on Jan. 1, 22 for the year. Ontarians will get a 20% personal income tax credit on eligible accommodation, between Jan 1-Dec 31, up to a max of $1,000 for an individual and $2,000 for a family, for a max credit of $200 or $400
— Roohi CPA LLP (@RoohiCPA) December 30, 2021

Basically, it gives Ontario residents a 20 per cent personal income tax credit for 2022 accommodation expenses (up to $1,000 for an individual and $2,000 for a family).

So if you spend $1,000 for a stay of less than a month, you will get a $200 tax credit.

To claim the expense, an eligible accommodation must 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 (e.g., a non-business purpose);
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; and
Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt.

There are some wonderful spots to visit around the province. Those who like wildlife could check out the Wye Marsh.

If you like skating, Bala in Muskoka has a rink over frozen cranberries you can try. A trip to Manitoulin Island could include a stay at some beautiful Scandinavian-style cabins.