Gifting a Car in Ontario: How Often Can You Play Santa with Wheels?
Let's face it, Canadians are a generous bunch. We shovel sidewalks for strangers, hold doors open from a mile away, and sometimes, we even want to gift the keys to our beloved (or slightly less than beloved) car. But before you wrap a giant red bow around that rusty bumper, there's a question that needs answering: how many times can you actually gift a car in Ontario?
Turns out, playing Santa with wheels comes with a limit. Ontario, in its infinite wisdom, has decided there can only be one tax-exempt transfer of a car between family members within a 12-month period. That's right, folks, it's a one-gift-per-year policy.
So, what happens if you try to Robin Hood your second (or third, or fourth...) car in a year? Well, buckle up buttercup, because the recipient will be on the hook for the Retail Sales Tax (RST) based on the car's value. Not exactly the joyous holiday spirit you were hoping for, is it?
But wait, there's more! This whole tax-exempt gifting thing only applies to a specific group of lucky ducks: your immediate family. We're talking spouses (common-law too!), parents, grandparents, siblings, kids, grandkids, and their in-law counterparts. Basically, the people who probably already know about your questionable taste in cars.
Tip: Read mindfully — avoid distractions.
Thinking of giving a car to your best bud Craig? Sorry, Craig. This party's for family only. He'll be paying that RST, just like if he bought it from a stranger on Kijiji (although hopefully with less risk of ending up with a car full of rogue french fries).
 |
| How Many Times Can You Gift A Car In Ontario |
FAQ: Gifting Cars in Ontario - Need for Speed Edition
How to gift a car to a family member in Ontario?
Head to your local ServiceOntario location with the proper paperwork (proof of ownership, completed application forms) and get ready to officially turn that car into a gift!
QuickTip: Skim for bold or italicized words.
How much does it cost to gift a car in Ontario to a family member?
If it's your first gift within a year and to a qualifying family member, then nada! No tax to pay. Otherwise, the recipient will be responsible for the RST.
 |
Can I gift a car in Ontario to a friend?
Tip: Use this post as a starting point for exploration.
Sure, but they'll have to pay the RST just like they would if they were buying it from anyone else.
Is there a gift tax in Canada on cars?
Nope! You're free to be as generous (or as desperate to get rid of that old clunker) as you want.
QuickTip: Use posts like this as quick references.
What if the car I want to gift needs repairs?
That's between you and the recipient. Just be honest about the car's condition so they can make an informed decision (and maybe avoid needing a loan for both a car and immediate repairs).
So there you have it! Gifting a car in Ontario can be a thoughtful gesture, but remember, it's not quite as simple as handing over the keys. Just follow the rules, choose your recipient wisely, and who knows, maybe you'll spark a gifting frenzy within the family (just be sure to space out those car donations!). Now get out there and spread some vehicular joy (responsibly, of course)!
 |
💡 This page may contain affiliate links — we may earn a small commission at no extra cost to you.
