How to Gift a Used Vehicle to a Family Member in Ontario

Who Can Receive a Vehicle as a Family Gift in Ontario?

The Ontario government allows tax-free vehicle transfers only between specific family members. This means not everyone qualifies for the RST exemption.

Eligible family members include:

• Spouse or common-law partner

• Parents or step-parents

• Children or step-children

• Grandparents

• Grandchildren

• Siblings (brother or sister)

Unfortunately, transfers to cousins, aunts, uncles, in-laws, nieces, or nephews do not qualify for the tax exemption, even if they are close relatives.

What Documents Are Required?

To gift a vehicle and transfer it legally, you’ll need to gather a few important documents before heading to ServiceOntario. Here’s what both the gift-giver and the recipient should prepare:

1. Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (Form 1157E) – This must be notarized. Dodo Notary can notarize this for you in person or online.

2. Proof of family relationship – This could be a birth certificate, marriage certificate, or government-issued ID showing matching last names or addresses.

3. Used Vehicle Information Package (UVIP) – This must be purchased by the gift-giver (current owner) from ServiceOntario.

4. Safety Standards Certificate – Required if the new owner intends to put the vehicle on the road.

5. Vehicle Ownership Permit – Fill out the Transfer portion on the back of the permit.

Step-by-Step Process for Gifting a Car

Gifting a car in Ontario isn’t complicated when you know the steps. Here’s how to get it done:

1. Prepare All Required Documents
   Make sure you have the UVIP, Safety Standards Certificate, completed Transfer Application, and proof of relationship ready to go.

2. Complete the Family Gift Affidavit
   Download Form 1157E and have it notarized by a licensed Notary Public. You can book your notarization appointment with Dodo Notary, either in person at our Brampton office or online from anywhere in Ontario.

3. Visit a ServiceOntario Centre
   The recipient of the vehicle must bring all documents to ServiceOntario to complete the ownership transfer.

4. RST Exemption is Applied
   As long as all documents are in order and the relationship is eligible, the 13% sales tax will be waived at the time of registration.

Things to Keep in Mind

• The vehicle must be fully owned—not leased or under financing.

• Both the giver and recipient must be residents of Ontario.

• The recipient must be at least 16 years old to register the vehicle.

• You can only gift a vehicle once per family member using this tax exemption.

• It’s always a good idea to make photocopies of all documents for your records.

Gifting a car is a generous way to support a loved one—and with the right documents and a trusted notary by your side, it’s easier than ever. Book your appointment with Dodo Notary today to get your family gift affidavit notarized quickly and correctly.

Gifting a used vehicle to a loved one in Ontario is a meaningful gesture, whether you're helping out a child, parent, or spouse. The good news is that if you're transferring ownership to a qualifying family member, you can do so without paying the 13% Retail Sales Tax (RST)—as long as you meet certain requirements and submit the right paperwork.

At Dodo Notary, we help clients with one of the most important steps in this process: notarizing the Sworn Statement for a Family Gift of a Used Vehicle. This notarized affidavit is essential for a smooth, tax-exempt transfer. In this article, we'll walk you through the entire process of gifting a vehicle in Ontario and how Dodo Notary can help you get it done fast and legally.