Something gone wrong?
Gifted a car to family — and got a tax bill anyway?
A gift exemption doesn't fail randomly — a specific condition wasn't met, and finding it is the whole game. First, check the three usual culprits: the relationship (some provinces exclude siblings or stepsiblings), the 12-month rule (one exempt transfer of the same vehicle), and whether the donor had already paid the provincial tax. Then find your province below — if it was purely a paperwork slip, the official links are where to fix or appeal it.
Was this preventable? Yes — the conditions are published.
Every province's exemption has specific conditions, and the gift guide walks them province by province before the registry visit. No help now — the cards below are.
Your province's actual conditions
Ontario
Use Form 1157E (Sworn Statement for a Family Gift of a Used Motor Vehicle). Must be sworn before a Commissioner of Oaths. Limit: one exempt family transfer of the same vehicle per 12 months.
Alberta
Alberta has no provincial sales tax, so no gift form or exemption is needed. Complete the standard vehicle transfer at any Alberta registry agent — there is no tax to exempt.
British Columbia
Use FIN 319 (Gift of a Vehicle). Both parties sign at an ICBC Autoplan broker — no notarization required. The donor must have already paid BC PST (a vehicle brought in from another province may not qualify). Limit: one gift per 12 months on the same vehicle.
Manitoba
Write a Letter of Gift (MPI PDF form, per Manitoba Finance Bulletin 054). The donor must have already paid Manitoba RST. Important: siblings do NOT qualify for this exemption in Manitoba — a sibling-to-sibling gift is a taxable transfer.
Saskatchewan
Write a Letter of Gift — an unnumbered written letter stating the relationship (per SGI / Bulletin PST-78). There is no specific form number. The vehicle must be Saskatchewan tax-paid. Siblings qualify in Saskatchewan.
Nova Scotia
Use the Sworn Statement for a Family Gift of a Used Motor Vehicle (NS doc 5-355). Must be sworn or witnessed by a lawyer, Commissioner of Oaths, notary, or Registry of Motor Vehicles staff. Not valid if the vehicle was tax-exempt-transferred to another family member in the prior 12 months.
New Brunswick
Sign a Family Gift Affidavit in person at a Service NB location (per Bulletin PVTB-104). The donor must have already paid tax. Not valid if another family gift on this vehicle occurred in the past 12 months. Note: stepsiblings cannot gift each other under this exemption.
Prince Edward Island
Complete the Sworn/Affirmed Statement for Family Transfer of Designated Property, witnessed by a Commissioner of Oaths at Access PEI. RST is charged on the actual consideration paid — a true $0 gift has $0 RST.
Newfoundland & Labrador
Newfoundland & Labrador has no published named or numbered gift form. Declare the gift through the MyGovNL vehicle transfer process — there is no separate downloadable gift form. Visit the Motor Registration Division page for current steps.
Quebec
Complete Form VD-80.1-V (Declaration of a Transaction Between Related Individuals) at a SAAQ service outlet. QST is waived between related individuals. Qualifying relationships include immediate family and also aunt/uncle to niece/nephew.
Common Questions
Why was my family gift taxed anyway?
Because a condition wasn't met — and the conditions differ by province. The usual culprits: the relationship doesn't qualify (Manitoba excludes siblings; New Brunswick excludes stepsiblings), the same vehicle was gift-transferred within the past 12 months (Ontario, NB, NS, BC), the donor hadn't already paid the provincial tax on the vehicle (BC, MB), or the statement wasn't properly sworn.
Can I fix it after the fact?
If the exemption genuinely applied and the paperwork just went wrong — the form wasn't sworn, the wrong form was used — contact your provincial tax office or registry with the corrected documents; each province card on this page links the official source. If the condition truly wasn't met (a non-qualifying relationship, the 12-month rule), the tax is likely correct.
Do siblings qualify for the gift exemption?
It depends on the province — this is the classic trap. Manitoba: siblings do NOT qualify; a sibling-to-sibling gift is a taxable transfer. Saskatchewan: siblings DO qualify. New Brunswick: stepsiblings are excluded. Check your province's card below before assuming.
Is there any tax on a gifted car in Alberta?
No — Alberta has no provincial sales tax on private transfers, so there is no gift exemption to fail. If you were billed something in Alberta, it wasn’t provincial gift tax; check what the charge actually was with the registry agent.
Doing another family transfer?
Guidepost is not a law firm or tax advisor. This is general information — confirm your situation with your provincial tax office or registry. Full disclaimer. Last updated: June 2026.