Gift or Sell a Car to Family: What Each Path Costs

Pick your province, your relationship to the other person, and the vehicle's value. This shows what a gift costs, what a sale costs, and what a token $1 sale is actually taxed on, using each province's own published gift-exemption list and tax rules. It does not tell you which to choose.

Province where the vehicle is registered

Your relationship to the other person

Approximate vehicle value

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Gift path

$0.00 tax

A gift to a sibling (brother or sister) is exempt in Ontario

Form required

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.

Repeat-transfer limit

Only one exempt transfer of the same vehicle, between family members, is allowed within a 12-month period.

Sell path

$0.00

Enter a vehicle value to estimate the sale tax

Does selling for $1 lower the tax?

A $1 sale is still taxed on the greater of the price paid or the vehicle's wholesale (Red Book / Black Book) value, so selling for a token $1 does not reduce the tax in Ontario.

Ontario: who the gift exemption covers

Quoted from Transfer Ownership of a Vehicle to a Family Member, ontario.ca (updated 2026-07-09). These are the province's own words.

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-siblings (siblings with a common parent)
adopted siblings

What still applies either way

A gift is not paperwork-free. These apply to a gift and a sale alike in Ontario.

Registration / transfer fee

$32 permit (UVIP $20 separate)

Lien search (PPSA / RDPRM)

Mandatory info package

UVIP: $20 (skipping it: $140 fine)

Inspection

$80 to $135 (market-set, not government-regulated)

Ontario: official source

ServiceOntario

Ontario gift / family-transfer page →

This compares two published tax treatments and states published eligibility. It is not advice on which path to choose and not a quote. The sale tax is computed on the value you entered only, not the vehicle's wholesale book value, so it is a floor estimate. Rules and rates change; confirm the current figures with the province before relying on them.

Common Questions

Is it cheaper to gift a car or sell it to a family member?

It depends on the relationship and the province. When the relationship is on the province's published exempt list, a gift is $0 in provincial sales tax. A sale is taxed on the greater of the price paid or the vehicle's wholesale book value. Alberta is the exception: it has no provincial sales tax, so a gift and a sale both cost $0. Pick your province and relationship above to see each path.

Does selling a car to family for $1 avoid the tax?

In nine of the ten provinces, no. Provincial tax is charged on the greater of the price paid or the vehicle's wholesale (Red Book or Black Book) value, so a $1 sale is still taxed on the book value. Only Alberta has no provincial sales tax. If the relationship qualifies, a proper gift, not a token sale, is the path that is $0.

Which family members qualify for a vehicle gift tax exemption?

The list is set by each province and the differences matter. A sibling gift is exempt in Saskatchewan and Ontario but taxable in Manitoba. A step-sibling gift is exempt in Saskatchewan but barred in New Brunswick. The tool renders each province's own published list so you can see exactly who is covered where.