There’s a new reason to visit Muskoka, Ontario’s spectacular region (one that’s also more inexpensive). The provincial government recently unveiled a plan for a staycation tax credit, which will add to the allure of visiting Ontario’s most picture-perfect locales.
Anyone planning a trip within the province in the 2022 tax year may be eligible for the “Ontario Staycation Tax Credit,” which was unveiled last week as part of the Ford government’s Fall Economic Statement.
Between January 1 and December 1, 2022, qualifying Ontario explorers will receive a 20% personal income tax credit on qualified lodging, up to a maximum of $1,000 for an individual and $2,000 for a family, for a total credit of $200 or $400.
Muskoka is a no-fail option for a traditional Ontario getaway, with its shimmering lakes, comfortable fireplaces, painting-like sunsets, and fresh pine air. The next best option to buying in the region’s red-hot real estate market is renting a home in the pristine area of the province for a brief break to unwind and refuel.
And there are many of beautiful rental cottages in Muskoka that are well worth the investment. Muskoka District Rentals is a carefully chosen selection of the best rental houses in Muskoka. And business is growing, since demand is at an all-time high.
“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.”