The Ontario Minister of Finance announced that the province economic perspective Thursday, and with it good news for those who can’t wait to travel to their own backyard.
The province will introduce the Ontario tourist tax credit in 2022. It will be a personal tax credit that can be claimed on annual taxes in 2022.
The credit will provide Ontarians with 20% of eligible accommodation expenses up to $ 1,000 for individuals and $ 2,000 for families. Individuals claiming the tax credit would see up to $ 200 returned for individuals and up to $ 400 for families.
Ontarians who owe no income tax can still claim the Ontario Stay Tax Credit.
According to the government, to be entitled to the tax credit:
- Your stay must be less than one month
- Your stay is in eligible accommodation such as a hotel, motel, resort, lodge, bed and breakfast, cabin or campground in Ontario
- Your stay is between January 1 and December 31, 2022
- Is a trip for leisure
- The trip is paid for by the person filing Ontario taxes on an itemized receipt. The eligible spouse, partner or child can also pay for the trip.
- The trip was not reimbursed to the declarant by a friend, family member or employer
- Travel is subject to GST and HST based on an itemized receipt.
The government has said the purpose of the tax credit is to help boost the province’s tourism and hospitality sectors. Both sectors have been hit hard by the COVID-19 pandemic.
Ontario has said this tax credit will provide approximately $ 270 million to support more than one million Ontario families.