Blog: Here’s a Tax Credit Available for Staycations in Ontario
By Jeff Pollock
Once the average gas price surpassed the psychological $2.00/litre here in Ontario, demand destruction started to take shape. A Leger survey conducted in May found that 66% of Canadians were either cancelling their trips or amending their vacation plans amid higher gas prices. That road trip from Toronto the Halifax no longer made much sense.
While gas prices have predictably dropped to today’s $1.77/litre here in Ontario after peaking around $2.12/litre, airport chaos is the new variable to worry about. Over the Canada Day long weekend, Toronto’s Pearson International Airport topped the world in delayed flights amid Air Canada announcing that 65% of their flights were delayed that weekend.
If you want to avoid hassles at the airport this summer yet still undertake a vacation, now that gas prices have pulled back 15% the last month, Ontario residents should be mindful of this tax credit available for intraprovincial staycations.
For 2022 only, you can get back 20% of your accommodation expenses, maxing out at $200 (for an individual) or $400 (for a total family, including common law spouses) for intraprovincial travel within Ontario. As long as you’re an Ontario resident on December 31, 2022, you can claim the credit. For families, only one person should claim this credit on their tax returns.
Eligible expenses include a hotel, motel, resort, lodge, bed & breakfast, cottage, campground, and rental property.
Ineligible expenses include a timeshare agreement or a stay on a boat, train, or other self-propelled vehicle. Also, expenses unrelated to short-term accommodations, such as a car rental, fuel, flights, groceries, parking, or the price of admission to a place of interest are not eligible expenses. If you incur any accommodation expenses that you’re reimbursed for, or if you undertake expenses for education or employment purposes, those too are not covered.
So, if you’re considering a staycation this summer or during the fall, keep this tax credit in mind when filing your 2022 tax return next spring.
DISCLAIMER: The opinions expressed in this publication are for general informational purposes only and are not intended to represent specific advice. The views reflected in this publication are subject to change at any time without notice. Every effort has been made to ensure that the material in this publication is accurate at the time of its posting. However, Schneider & Pollock Wealth Management Inc. will not be held liable under any circumstances to you or any other person for loss or damages caused by reliance of information contained in this publication. You should not use this publication to make any financial decisions and should seek professional advice from someone who is legally authorized to provide investment advice to assess your goals and objectives, personal circumstances, and make an informed suitability assessment.