How To Transfer Car Ownership In Ontario

What Is Transferring Car Ownership? 

Transferring car ownership refers to doing all the work that is legally needed to switch who legally owns a vehicle. In Ontario, each vehicle on the road is required to be registered to an owner. While many vehicles are registered to a single owner, some are owned by multiple people, such as a car shared by a married couple. This is legally backed up by a green document, which is often found in the glove compartment or glove box of your vehicle. 

When you transfer car ownership, the legal owner of the vehicle switches. Since the vehicle ownership document contains the owner's name, this document needs to be updated at Service Ontario, which means some work on the part of both the old and new owners. While this might seem overwhelming, this guide will walk you through the process you need to go through to transfer car ownership in Ontario. 

What Ways Can I Transfer My Car Ownership To Someone Else? 

You can transfer car ownership to another owner in two ways: as a gift or as part of a sale. 

If you plan to transfer car ownership to your child, spouse, parent, grandparent, etc. This can be done as a gift. A benefit of transferring car ownership as a gift is the person receiving it may not need to pay the RST.  

If you transfer car ownership as part of a sale to someone else who is not your immediate family, this individual must pay RST.   

Who Can I Transfer Car Ownership To In Ontario? 

You can transfer car ownership to anyone in Ontario who has a valid driver’s license and proper car insurance, but this does incur costs, including the retail sales tax (RST), which is 13% of the Canadian Redbook value of the vehicle. 

Where Do I Go To Transfer Car Ownership In Ontario? 

When you transfer car ownership in Ontario, both the person giving the vehicle and the recipient must go to a Service Ontario Centre together to complete the transaction. 

How To Transfer Ownership As A Gift 

The first thing you need to do is to have your vehicle paid off in full before you transfer car ownership to someone as a gift. To do this, keep in mind the possibility of a plate transfer being involved in the gift. This can only be done when giving it to a spouse, parent, or child. You will need to complete a plate transfer declaration before doing so.  

In addition to this, you also need to bring all required documents to Service Ontario, and both you and the person to whom you are gifting the vehicle need to be present. 

How To Transfer Ownership As A Sale 

Transferring ownership as part of a sale requires the seller to acquire a lot of documents.  The first of these documents needed to transfer ownership is a used vehicle information package that must be purchased and given to the buyer. This is legally required by the Highway Traffic Act, and includes the following information about the car: 

• Year and make of the vehicle. 
• The vehicle's registration history. 
• The vehicle lien information. 
• The condition of the vehicle. 
• If it's been reported as wrecked. 

Please note that this is not the only information included. In addition to this package, both you and the buyer need to meet with Service Ontario together. You, as the seller, also need to bring all the standard required documentation as well as the following documents to successfully transfer car ownership: 

• A bill of sale with your name, the buyer's name and address, the date of the transaction, and the purchase price. 
• A signed application transfer. 
• A certification that confirms your vehicle meets certain safety standards, which you can get from a licenced mechanic. 

What Do I Need To Bring To Transfer Car Ownership? 

Both the person relinquishing the vehicle and the person receiving it must bring certain documents to Service Ontario to successfully transfer car ownership. These documents include the following: 

• Proof of Insurance. 
• A driver's license. 
• The vehicle's ownership permit. 
• A completed Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario form.  
• Safety standards certificate (not needed if transferring to a spouse). 
• Emissions test result. 
• Plate transfer declaration is required if transferring a license plate (only possible with spouses, parents, and children). 

Please note that the transaction will not take place if the needed documents are not presented, so it is best to double-check that you have all of them before scheduling your meeting. 

How Much Does It Cost To Transfer Car Ownership In Ontario? 

As of July 2024, it costs $32 to transfer vehicle ownership In Ontario, and in addition to this, the buyer must pay the RST mentioned earlier in this article. Please note that this applies not just to cars but all other vehicles as well. Trucks, motorcycles, SUVs, jeeps, and similar vehicles are subject to the same price charges. Please note that this, however, is subject to change, so it is recommended that you double-check this price before going through with a car ownership transfer. 

When transferred between certain family members, you can enact the transfer without the RST payment. You can legally transfer a vehicle to any of the following relatives without needing to worry about paying the RST: 

• Your spouse (including a common-law spouse). 
• Your son or daughter (including a stepson or stepdaughter). 
• Your parent (including a stepparent). 
• Your grandparents (including step-grandparents). 
• Your grandchild (including step-grandchild). 
• Your father-in-law, mother-in-law, son-in-law or daughter-in-law. 
• Your sibling (this includes half-siblings and adopted siblings). 

Please note that even in these cases, you must still complete all paperwork and visit a Service Ontario location with all required documents. The new owner of the vehicle being included on this list only means that you are not required to pay the RST. All other restrictions and laws related to the transfer of car ownership still apply. 

What Are The Benefits Of Gifting A Car In Ontario? 

The main benefit of gifting a car instead of selling it when you transfer car ownership in Ontario is that there is no need for the one receiving the car to pay RST if the person receiving the car is one of the eligible family members.