Updated: April 2025  |  bremo.io financial guides

Ontario Northern Travel Grant and Northern Benefits 2025

Living in Northern Ontario comes with higher costs for some things — energy, travel to access services, distance from specialized healthcare. The Ontario government recognizes this with several programs specifically designed for northern residents. Here's what's available and how to access it.

1. Northern Health Travel Grant

The Northern Health Travel Grant reimburses eligible travel costs when Northern Ontario residents must travel to receive medical specialist services not available in their home community.

Who Qualifies

• Ontario residents who live in Northern Ontario (north of the French and Mattawa Rivers)
• Referred by a physician or nurse practitioner to a specialist at least 100 km away
• The service must not be available in your home community

What's Covered

• Transportation: Mileage reimbursement for car travel; commercial bus or air travel costs
• Accommodation: Lodging costs when an overnight stay is required
• Meals: Per-diem meal allowances for extended travel
• Escort: One escort may be covered if medically necessary

Reimbursement Rates (2025)

Rates are set by the Ministry of Health and are updated periodically. Current mileage rates for private vehicle travel are approximately $0.42–$0.46/km one-way. Air travel is reimbursed at the lower of actual cost or government-approved rates. Check the Ontario government website for current rates before submitting claims.

How to Apply

Submit claims through the Northern Health Travel Grant program after your medical travel. Keep all receipts and your physician's referral documentation. Claims are processed by the Ministry of Health; allow several weeks for payment.

2. Northern Ontario Energy Credit (NOEC)

The Northern Ontario Energy Credit is a refundable provincial tax credit that helps offset the higher energy costs northern residents face due to climate and distance from southern infrastructure.

2025 Benefit Amounts

Eligibility

• Must be a Northern Ontario resident (same geographic definition as the travel grant)
• Must file an Ontario tax return
• Must meet income thresholds (credit is reduced at higher income levels; check CRA/Ontario for current thresholds)

The credit is claimed on Schedule ON428 as part of your Ontario tax return. It's paid through the Ontario Trillium Benefit (OTB) — monthly instalments after filing.

3. Ontario Trillium Benefit — Northern Component

The Ontario Trillium Benefit combines three credits: the Ontario Energy and Property Tax Credit (OEPTC), the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. The OTB is paid monthly and provides ongoing support for lower and moderate income residents.

Northern Ontario residents receive a higher OEPTC amount than Southern Ontario residents to account for higher energy costs. The exact amount depends on your income, household size, and whether you rent or own.

4. Northern Ontario Heritage Fund Corporation (NOHFC)

While not a direct personal benefit, NOHFC provides funding for businesses, municipalities, and community organizations in Northern Ontario. Entrepreneurs and small business owners in the north can access grants and loans through NOHFC programs that aren't available to Southern Ontario businesses.

5. Remote Connectivity Programs

The Ontario government and federal CRTC have programs aimed at improving broadband access in remote northern communities. If your community has inadequate internet, check with your municipality about funded connectivity projects that may improve access.

Federal Benefits for Northern Residents

The federal government also recognizes northern costs through the Northern Residents Deduction:

• Residents of prescribed northern zones can claim a deduction of $11/day (basic residency) plus travel benefits
• Intermediate zone residents receive half the northern zone amounts
• Northern Ontario cities and towns are in either the northern or intermediate zone — check the CRA prescribed zones list for your specific location

How to Ensure You're Claiming Everything

1. File your Ontario tax return every year, even if you owe nothing
2. Complete the Northern Ontario Energy Credit section on your Ontario return
3. Track all medical travel and submit Northern Health Travel Grant claims promptly (there are time limits)
4. Verify your location qualifies as Northern Ontario in CRA's prescribed zones for the federal deduction
5. Consider working with a tax preparer familiar with northern Ontario credits