When a used vehicle changes hands privately in Ontario, the buyer usually pays 13% Retail Sales Tax (RST) on the purchase price or the vehicle’s wholesale value, whichever is greater. However, Ontario allows eligible family members to transfer a vehicle as a gift without paying this tax.
To claim the exemption, signing the back of the vehicle permit is not enough. The donor and the recipient must complete the Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario, which is sworn before a commissioner, and bring it to ServiceOntario.
At Crown Seal Notary, we commission family gift sworn statements for families across Hamilton, Halton and the Greater Toronto Area (GTA). You can book a remote online commissioning session or an in-person appointment in our office or at your home or workplace.
Please note: Crown Seal Notary is an independent notary public and commissioner of oaths, not a government agency. We do not register vehicles or decide whether a tax exemption applies; ServiceOntario and the Ministry of Finance apply those rules. If you plan to use remote commissioning, confirm that it will be accepted for your transfer.
DOCUMENTS SERVICEONTARIO ASKS FOR
To register a family gift transfer, the recipient must visit a ServiceOntario centre in person (a new owner has 6 days to register the vehicle) and bring:
- Vehicle Permit: The original vehicle permit, with the transfer portion on the back completed and signed.
- Proof of Ontario Vehicle Insurance: Insurance in the recipient’s name (the donor’s insurance does not transfer).
- Ontario Driver’s Licence: The recipient’s valid licence.
- Sworn Statement for a Family Gift (Form 1157E): The Ministry of Finance form, signed by both the donor and the recipient and sworn before a commissioner of oaths or notary public.
- Safety Standards Certificate (SSC): Issued by a licensed inspection station, showing the vehicle meets safety standards.
Spouse-to-spouse transfers: A Safety Standards Certificate is not required when the vehicle is transferred between spouses, but you must complete a spousal declaration. Other family transfers (for example, parent to child or between siblings) still need a valid safety certificate. If you are also transferring the licence plates, complete a plate transfer declaration.
WHAT IS THE FAMILY GIFT SWORN STATEMENT (FORM 1157E)?
The Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (Form 1157E) is signed by both the person giving the vehicle (the donor) and the person receiving it (the recipient). Among other things, they state that:
- They have one of the family relationships listed on the form.
- The vehicle is a gift, with no payment or other compensation.
- The vehicle has not been transferred as a tax-exempt gift in Ontario within the 12 months before this transfer.
The form warns that anyone who knowingly makes a false or deceptive statement is guilty of an offence and can face a fine, imprisonment, or both. That is why it must be sworn before an authorized commissioner, such as a notary public or commissioner of oaths.
WHO EXACTLY QUALIFIES AS “FAMILY” FOR THE TAX BREAK?
The exemption only applies to the family relationships listed on the form:
- Spouse (including a common-law spouse)
- Father / Mother, Stepfather / Stepmother
- Son / Daughter, Stepson / Stepdaughter
- Brother / Sister (ServiceOntario also includes half-siblings and adopted siblings)
- Grandfather / Grandmother, Step-Grandfather / Step-Grandmother
- Grandson / Granddaughter, Step-Grandson / Step-Granddaughter
- Son-in-law / Daughter-in-law, Father-in-law / Mother-in-law
Relationships that do not qualify: Aunts, uncles, cousins, nieces, nephews, and partners who do not meet the definition of a spouse cannot use the family gift exemption. These transfers are treated like other private sales, and tax is based on the purchase price or the wholesale value, whichever is greater.
MOVING A VEHICLE WITHIN THE FAMILY? BOOK YOUR APPOINTMENT NOW
Save time, protect your tax exemption, and help your ServiceOntario visit go smoothly the first time.
Let Crown Seal Notary commission your sworn statement quickly and conveniently. Choose your appointment type today:
Click Here to Book a Remote Online Session or an In-Person Appointment
