Ontario’s Staycation Tax Credit Makes A Cottage Country Escape Even More Enticing

Ontario’s Staycation Tax Credit
Photo courtesy of Big Bay Media

Written by Erin Nicole Davis, contributing writer for Storeys

There’s a new reason to visit Ontario’s unforgettable Muskoka region (…and, one that actually makes it more affordable).

Adding to the enticement of exploring Ontario’s most picture-perfect spots, the provincial government just announced its plan for a staycation tax credit.

Anyone planning a getaway within the province in the 2022 tax year could be eligible for the “Ontario Staycation Tax Credit” program, which was announced as part of the Ford government’s Fall Economic Statement that was tabled last week.

Qualifying Ontario explorers will receive a 20% personal income tax credit on eligible accommodation between January 1 and December 1, 2022, up to a maximum of $1,000 for an individual and $2,000 for a family, for a maximum credit of $200 or $400 respectively.

With its glistening lakes, cozy fireplaces, painting-like sunsets, and fresh pine air, Muskoka provides a no-fail option for a quintessential Ontario escape. Renting a place in the the pristine part of the province for a short getaway to relax and refuel is the next best thing to buying in the region’s red-hot real estate market.

And there are no shortage of stunning rental cottages throughout Muskoka that are completely worth the splurge. Muskoka District Rentals offers a well curated selection of Muskoka’s finest rental properties. And business is booming, as demand soars like never before.

“With the onset of COVID 19 international travel restrictions introduced in early spring of 2020, we saw a major increase in demand for short term stay options in cottage country that would allow friends and family to more safely self-isolate together while enjoy[ing] nature and a lake life experience,” says Ross Halloran, Broker and Senior VP sales at Sotheby’s International Realty Canada’s Muskoka-based Halloran & Associates.

“This trend has continued throughout 2021, as a new market of cottagers have been introduced to lake country and want to further expand these experiences and incorporate them into their regular annual travel plans. This new Ontario staycation tax credit program will both reward and support patrons of these new local short term rental behaviours while ensuring that the associated tourist related revenues stay in Ontario to fuel the growth and prosperity of the local communities that serve these important lakeland regions, while helping to offset rentals costs to Ontario based guests.”

Maryrose Coleman of Muskoka District Rentals adds: “We can provide a great opportunity to take advantage of Ontario travel, support local tourism, and get a tax rebate.”

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