A private used-car transfer in Ontario costs 13% retail sales tax. A gift between eligible family members can be exempt — but only with Form 1157E, sworn by both people. Who qualifies, what it costs, how to do it.
Last updated: August 26, 2026
Gifting a Used Vehicle to Family in Ontario: How the Tax Exemption Works
Quick answer: Buying a used car privately in Ontario costs 13% retail sales tax, charged on the purchase price or the vehicle's Canadian Red Book wholesale value — whichever is greater. When the vehicle is given as a gift between eligible family members, that tax can be waived, but only if you file the Sworn Statement for a Family Gift of a Used Motor Vehicle (Form 1157E). The form is sworn by the donor and the recipient together before a notary public or commissioner of oaths. Ontario allows the oath to be administered over secure video under O. Reg. 431/20; you then print the statement and take it, with the rest of the paperwork, to a ServiceOntario centre in person.
Handing a car down to a son, a daughter, or a spouse feels like it should be paperwork-free. It is not — but it can be tax-free. The difference between a $0 transfer and a four-figure tax bill is one sworn form, and most of the trouble people run into comes from three things: not knowing which relatives count, not knowing that both people have to swear it, and assuming a low number on the bill of sale solves the problem.
This guide walks through the tax, the exemption, who qualifies, the form itself, and how to get it sworn. Minute Notary commissions the sworn statement as an Ontario notary public — see the Vehicle Transfer Documents service, book online, or call (613) 434-5555.
Caption: The gift itself is simple. The sworn statement is what makes the tax exemption stick.
Key Takeaways
| Decision point | What to check | Why it matters |
|---|---|---|
| The tax | 13% RST on a private used-vehicle purchase | Charged on price or Red Book value, whichever is greater. |
| The exemption | The recipient is on ServiceOntario's eligible list | Off the list, the transfer is taxed like any other. |
| The form | Sworn Statement for a Family Gift (Form 1157E) | Without it the exemption is not granted. |
| Who swears | The donor and the recipient | One form, two deponents, two signature lines. |
| Frequency | One exempt gift of the same vehicle per 12 months | You swear to this on the form itself. |
| Where it ends | A ServiceOntario centre, in person | The notary commissions; ServiceOntario registers. |
What a Notary Can and Cannot Do
What a notary can and cannot do: A notary public or commissioner for taking affidavits administers the oath, witnesses the signatures, and commissions Form 1157E. A notary does not decide whether your relationship qualifies for the exemption, calculate the tax, complete the registration, or give tax advice. Eligibility and processing belong to ServiceOntario and the Ministry of Finance.
Minute Notary commissions the statement as an Ontario notary public, including by video under O. Reg. 431/20, made under the Commissioners for Taking Affidavits Act.
The Tax You Are Trying Not to Pay
Ontario's retail sales tax (RST) survived the move to HST for one narrow purpose: private purchases of specified vehicles. If you buy a car, truck, van, motorcycle, trailer, boat, off-road vehicle or aircraft privately in Canada from someone who is not a GST/HST registrant, you pay 13% RST at the ServiceOntario counter when you register it.
For an automobile, van or truck with an empty weight of 2,200 kilograms or less bought privately in Ontario, the Ministry of Finance calculates that 13% on the purchase price or the vehicle's Canadian Red Book wholesale value, whichever is greater.
That last clause is the part people miss.
Why "Just Write $1 on the Bill of Sale" Does Not Work
It is the oldest idea in private car sales, and in Ontario it fails by design. Because the tax is charged on the greater of the two numbers, a nominal price on the bill of sale does not lower anything — the Red Book value acts as a floor underneath it.
A worked example
A ten-year-old sedan with a Canadian Red Book wholesale value of roughly $12,000 attracts about $1,560 in RST at 13%, whether the bill of sale says $12,000, $1,000, or $1. The bill of sale does not set the tax; the greater of price and Red Book value does.
There is a lawful way to transfer that same vehicle for $0 in retail sales tax, and it is not a loophole — it is an exemption the province publishes and expects eligible families to use. It just has conditions, and one of them is a sworn statement.
The Family Gift Exemption
ServiceOntario allows the ownership of a vehicle to be transferred to an eligible family member without paying retail sales tax when the vehicle is given as a family gift. Vehicle registration fees still apply — the exemption covers the tax, not the counter.
To claim it you need to do three things: complete the sworn statement, bring the required documents, and go in person to a ServiceOntario centre.
Who Qualifies — the Full List
This is the question that decides everything, and the list is finite. ServiceOntario recognises these relationships for a tax-exempt vehicle gift:
| Eligible | Also eligible |
|---|---|
| Spouse, including a common-law spouse | Son-in-law |
| Parent or step-parent | Daughter-in-law |
| Grandparent or step-grandparent | Father-in-law |
| Son or step-son | Mother-in-law |
| Daughter or step-daughter | Sibling |
| Grandson or step-grandson | Half-sibling (siblings with a common parent) |
| Granddaughter or step-granddaughter | Adopted sibling (through adoption) |
Who is not on the list
Aunts, uncles, nieces, nephews and cousins do not qualify. Neither do brothers-in-law or sisters-in-law — which surprises people, because sons-in-law, daughters-in-law, fathers-in-law and mothers-in-law are on the list. A transfer to anyone outside the list is treated as an ordinary private transfer and retail sales tax applies in the usual way.
If your relationship is not on the list, do not try to make it fit. You would be swearing to it under oath on a form that carries a criminal penalty for a false statement.
The Twelve-Month Rule
Only one exempt transfer of the same vehicle between family members is allowed within a 12-month period. This is not fine print you can overlook: paragraph 5 of Form 1157E asks you to swear that the vehicle "has not been transferred on a tax-exempt basis in Ontario as a gift within the twelve-month period immediately preceding the acquisition."
So a car gifted from a parent to a child in March cannot be gifted on from that child to a sibling in September and still be exempt.
The Form Itself
Ontario Ministry of Finance · revision 2022/10
The family gift form, published by the Ontario Ministry of Finance. Download it from the government rather than from a copy — an out-of-date revision can be turned away at the counter. Complete it, but leave both signatures blank until the appointment.
Form 1157E is one page. It asks for the recipient's name and municipality, the donor's name and municipality, the vehicle's year, make, model and VIN, the relationship between the two parties, the date of the gift, and a declaration that the vehicle was given "as a gift for no consideration."
Two details matter more than the rest.
First, it is sworn in the plural. The form opens "We, ⟨name of the recipient⟩ … and ⟨name of donor⟩ … MAKE OATH AND SAY", and the jurat at the bottom has a signature line for the recipient and a separate one for the donor. This is not a form one person signs on behalf of both.
Second, it must be commissioned. Ontario names who may take it: a lawyer or notary public, a justice of the peace, a local municipal or town clerk, deputy clerk, treasurer, head of municipal council or reeve, or another person appointed by the Lieutenant Governor to administer oaths. ServiceOntario's own guidance notes that a commissioner of oaths may charge a fee to commission the document.
Making a knowingly false or deceptive statement on the form is an offence under subsections 32(4) and 32(4.1) of the Retail Sales Tax Act, punishable by a fine, imprisonment, or both.
If It Is Not a Gift: Form 1155E
Not every untaxed-looking transfer is a gift. If a vehicle moves between spouses or former spouses as part of a settlement under the Family Law Act — or from an estate, under a court order, or between a corporation and its shareholders — the gift form is the wrong one.
Ontario Ministry of Finance · revision 2014/06
The non-gift transfer statement. Like the gift form, it is sworn by both parties and carries a signature line for each.
For a vehicle acquired from a spouse or former spouse as part of a Family Law Act settlement, ServiceOntario will accept one of: a completed Form 1155E, a separation agreement, a divorce agreement, or another similar court document showing the vehicle was part of the settlement.
How to Get It Sworn — Step by Step
- Confirm the relationship qualifies. Check the list above against ServiceOntario's page before anything else. This is the step that saves a wasted appointment.
- Download Form 1157E from the Ontario forms repository using the link above, and complete it — vehicle year, make, model, VIN, both names and municipalities, the relationship, and the date of the gift.
- Leave both signatures blank. A sworn statement is signed in front of the commissioner, after the oath. Signing at the kitchen table means starting over.
- Book the appointment with both people. Choose the family gift option when you book online, and say that two people will be swearing so the slot is the right length. Slots run on Ottawa time (America/Toronto).
- Both parties join with valid government photo ID. A passport, driver's licence or Ontario Photo Card for each of you, on camera or in hand.
- Swear and sign. Each of you swears the statement is true and signs while the commissioner watches. The commissioner completes the jurat, signs, and applies the seal.
- Print it and take it in. ServiceOntario completes the registration in person, so print the commissioned statement and bring it to a ServiceOntario centre with the rest of the documents below.
Doing It Online
A sworn statement is a commissioning act, and Ontario's O. Reg. 431/20 permits a commissioner to administer an oath or declaration remotely by audio-visual means. That is what makes a video appointment possible for this form: the donor and the recipient join the same call — from different cities if they need to — show ID, swear on camera, and sign while the commissioner watches.
Confirm acceptance before you book
The regulation governs how the oath may be administered. Whether a particular ServiceOntario centre will accept a printed, remotely commissioned statement is their decision, not ours. Check with ServiceOntario before booking, especially if your transfer is time-sensitive.
The registration itself is never online. ServiceOntario's instruction is to go in person to a ServiceOntario centre with the completed documents.
What to Bring to ServiceOntario
| Item | Note |
|---|---|
| The completed, commissioned Form 1157E | Sworn by both the donor and the recipient. |
| Proof of Ontario vehicle insurance | For the recipient. |
| The recipient's Ontario driver's licence | Identification at the counter. |
| Safety Standards Certificate | Not required spouse-to-spouse, but a spousal declaration is. |
| Vehicle Ownership Permit | With the completed portion on the back. |
| Plate transfer declaration | Only if the plates move — permitted between spouses, parents and children only. |
Booking note: Requirements change and depend on the situation. Confirm the current list with ServiceOntario before you go, and call (613) 434-5555 if you have questions about the notary appointment.
Common Mistakes to Avoid
- Signing the form early. Both signatures go on in front of the commissioner, after the oath.
- Sending one person. Form 1157E is sworn by the donor and the recipient together. One person cannot swear for both.
- Assuming an in-law counts. Sons- and daughters-in-law qualify; brothers- and sisters-in-law do not.
- Relying on a low bill of sale. The Red Book value sets the floor for RST.
- Re-gifting inside a year. One exempt transfer of the same vehicle between family members per 12 months.
- Downloading an old copy of the form. Take it from the Ontario forms repository each time; revisions change.
- Expired ID. Valid government photo ID is required for each person swearing.
Online or In Person — How to Decide
| Your situation | Best channel | Why |
|---|---|---|
| Donor and recipient live in different cities | Online by video | Both join the same call; sworn under O. Reg. 431/20. |
| Both parties are together and near Ottawa | Either | An office appointment is just as quick. |
| ServiceOntario has told you it wants a wet-ink original | In person | Follow the receiving office's instruction. |
| One party cannot get to a camera or a quiet private space | In person | The commissioner must see and hear each deponent clearly. |
| The vehicle is registered outside Ontario | That province | Its registry and tax rules apply, not Ontario's. |
A Quick Scenario
A father in Barrhaven is passing his 2016 hatchback to his daughter, who has just moved to Toronto for work. The Red Book value is around $9,000, so registering it as an ordinary private purchase would cost roughly $1,170 in RST. She is his daughter, which is on ServiceOntario's eligible list, and the car has not been gifted tax-exempt in the past year.
He downloads Form 1157E, fills in the VIN, both names, and the relationship, and leaves the signatures blank. They book one video appointment together — he joins from Ottawa, she joins from her apartment — hold up their driver's licences, swear the statement, and sign while the notary watches. Two deponents, so two stamps: $49.90 plus HST. She prints the commissioned statement, takes it to a ServiceOntario centre with her insurance, the ownership permit and the safety certificate, and registers the car with no retail sales tax.
Pricing and Booking
| Service | Fee | Note |
|---|---|---|
| Family gift statement — one deponent | $24.95 per stamp | Flat rate plus HST, online or in person |
| Family gift statement — donor and recipient | $49.90 | Two people swear, so two stamps, plus HST |
| Each additional stamp / seal | $24.95 | Same flat rate, no bulk tiers |
Note: pricing is per notarial act, so each person who swears is one more stamp. See the full price breakdown for HST and the online card fee.
Online appointments add HST plus a small card processing fee, shown in full before you pay. To book, choose the family gift option when you book online, or call (613) 434-5555.
Frequently Asked Questions
How much tax do you pay on a used car in Ontario?
Ontario charges 13% retail sales tax (RST) when you buy a specified vehicle privately in Canada from someone who is not a GST/HST registrant. For a car, van or truck with an empty weight of 2,200 kilograms or less bought privately in Ontario, the tax is calculated on the purchase price or the vehicle's Canadian Red Book wholesale value, whichever is greater.
Does writing a low price on the bill of sale reduce the tax?
No. Because RST on a privately purchased car, van or light truck is charged on the purchase price or the Canadian Red Book wholesale value, whichever is greater, a low figure on the bill of sale does not lower the tax. The Red Book value acts as a floor. The lawful way to transfer a vehicle without RST is the family gift exemption, claimed with the sworn statement on Form 1157E.
Who counts as an eligible family member for a tax-exempt vehicle gift in Ontario?
ServiceOntario lists the eligible relationships: spouse (including a common-law spouse), parent or step-parent, grandparent or step-grandparent, son or step-son, daughter or step-daughter, grandson or step-grandson, granddaughter or step-granddaughter, son-in-law, daughter-in-law, father-in-law, mother-in-law, sibling, half-sibling, and adopted sibling. Eligibility is set by ServiceOntario and the Ministry of Finance, not by the notary.
Can I gift a vehicle to my nephew, niece, aunt, uncle or cousin tax-free?
No. Nephews, nieces, aunts, uncles and cousins are not on ServiceOntario's list of eligible family members, and neither are brothers-in-law or sisters-in-law — even though sons-in-law, daughters-in-law, fathers-in-law and mothers-in-law are. A transfer to someone outside the list is treated as an ordinary private transfer and retail sales tax applies.
Do both the donor and the recipient have to swear Form 1157E?
Yes. The form is written in the plural — "We, [recipient] … and [donor] … MAKE OATH AND SAY" — and the jurat carries a signature line for the recipient and a separate one for the donor. Both people swear the same statement, so both must appear before the commissioner with valid photo ID.
Can Form 1157E be commissioned online?
A sworn statement is a commissioning act, and O. Reg. 431/20 permits an Ontario commissioner to administer an oath or declaration remotely by audio-visual means. Both parties join the same secure video appointment with valid government photo ID, swear the statement, and sign while the commissioner watches. You then print the commissioned statement and take it to a ServiceOntario centre in person. Confirm with ServiceOntario that they will accept a remotely commissioned statement before you book.
How much does the notary step cost?
Minute Notary charges a flat $24.95 per stamp plus HST. Each person who swears counts as one stamp, so a family gift statement sworn by both the donor and the recipient comes to $49.90 plus HST. Online appointments add a small card processing fee, shown in full before you pay. ServiceOntario's own registration fees are separate and paid to ServiceOntario.
Can I gift the same vehicle twice in one year?
No. ServiceOntario allows only one tax-exempt transfer of the same vehicle between family members within a 12-month period, and Form 1157E asks you to swear that the vehicle has not been transferred tax-exempt as a gift in the twelve months immediately before the acquisition.
Do I still need a Safety Standards Certificate for a family gift?
ServiceOntario lists a Safety Standards Certificate among the documents to bring, with one exception: it is not required for a spouse-to-spouse transfer, though a spousal declaration must be completed instead. Confirm the current requirement for your situation with ServiceOntario before you go.
Can the licence plates move with the vehicle?
A plate transfer is only permitted between spouses, parents and children, and it needs a completed plate transfer declaration in addition to the gift statement. In every other eligible relationship the vehicle transfers but the plates do not.
Final Recommendation
Check the relationship against ServiceOntario's list first — everything else follows from that. If it qualifies, download Form 1157E fresh from the Ontario forms repository, fill it in, and leave both signatures blank. Book one appointment for the two of you, swear it together, then print it and take it to a ServiceOntario centre with the insurance, the ownership permit and the safety certificate. The notary makes the statement official; ServiceOntario grants the exemption and registers the vehicle.
Book Your Appointment
Need to swear the family gift statement (Form 1157E) for an Ontario vehicle? Minute Notary commissions it by secure video or at the Orléans office — flat $24.95 per stamp plus HST, so $49.90 when the donor and the recipient both swear.
- Book online: Request an appointment
- Call: (613) 434-5555
- Service page: Vehicle Transfer Documents
- Related guide: Vehicle transfer & gift affidavits online
- Related guide: Lost or stolen vehicle ownership affidavit
- Hours: Every day, Saturday and Sunday included, 8:00 AM to 8:00 PM (Ottawa time)
This article is general information about Ontario's published requirements, not legal or tax advice. Eligibility for the retail sales tax exemption is determined by ServiceOntario and the Ministry of Finance.
Sources
- ServiceOntario — Transfer ownership of a vehicle to a family member
- Ontario — Retail Sales Tax
- ServiceOntario — Buy or sell a used vehicle in Ontario
- Ontario Central Forms Repository — Form 1157E
- Ontario Central Forms Repository — Form 1155E
- Commissioners for Taking Affidavits Act (Ontario)
- O. Reg. 431/20: Administering Oath or Declaration Remotely (Ontario)
Related notary services
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About the author
Duong Quan Nguyen
Notary Public & Licensed Paralegal, Province of Ontario (LSO #P21230)
Duong Quan Nguyen is an Ottawa Notary Public and Licensed Paralegal, appointed under Ontario’s Notaries Act and a member of the Law Society of Ontario. Since 2020 he has helped Ottawa clients with certified copies, affidavits, statutory declarations, travel consent letters, and immigration paperwork. This guide is general information, not legal advice.