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At a Glance: Ontario Vehicle Transfer
To transfer ownership in Ontario, the buyer must register the vehicle at ServiceOntario within 6 days of the sale. A $32 fee applies, plus 13% Retail Sales Tax (RST) based on the higher of the purchase price or the UVIP wholesale value.
| Requirement | Detail / Cost |
|---|---|
| Transfer Fee | $32 (Standard) |
| Tax (RST) | 13% of Wholesale/Purchase Price |
| Family Gift | Tax-exempt with Form 1157E (Notarized) |
| Safety Certificate | Required for plates (Valid 36 days) |
Source: Verified via ServiceOntario & Ministry of Transportation (MTO).
Last Updated: 07.04.2026
Are you planning on selling or buying a vehicle in Ontario? Navigating the paperwork and legal requirements can be overwhelming. While the summary above covers the basics, the transfer process involves specific legal steps and documentation that vary depending on whether you’re selling privately, buying from a dealer, or gifting to a family member.
In this guide, we will break down the exact steps to ensure your transfer is completed legally and you avoid common tax pitfalls.
The “Wholesale Value” Rule: How Much Tax Will You Actually Pay?
One of the most common surprises at ServiceOntario is the tax bill. Many buyers assume they will only pay 13% of the price written on the Bill of Sale. In reality, Ontario uses a “higher of” rule to prevent people from under-reporting sale prices.
1. The UVIP vs. Your Purchase Price
When you register the vehicle, ServiceOntario will look at two numbers:
- The Purchase Price: What you actually paid the seller.
- The Wholesale Value: The “book value” listed in the Used Vehicle Information Package (UVIP), which is based on the Canadian Red Book.
The Law: You must pay 13% Retail Sales Tax (RST) on whichever number is higher.
Example: You buy a car for $5,000, but the UVIP wholesale value is $7,000. You will be charged 13% tax on $7,000, resulting in a tax bill of $910, not $650.
2. What if the car is in poor condition?
If you paid less than the wholesale value because the car has high mileage, mechanical issues, or body damage, you don’t have to overpay on tax. You can have the vehicle appraised by a licensed dealer or professional appraiser. If the appraised value is lower than the Red Book value, ServiceOntario will use the appraised value to calculate the tax.
3. The “20-Year Rule” for Older Vehicles
If you are transferring a vehicle that is 20 years or older, the process changes slightly because the Canadian Red Book often stops listing values for older cars.
- Appraisal Requirement: For most vehicles 20 years or older, ServiceOntario requires a professional appraisal or an insurance document showing the vehicle’s value.
- Tax Calculation: The tax will be calculated on the higher of the purchase price, the appraised value, or the insurance replacement value.
Always get your appraisal done before heading to ServiceOntario to avoid being turned away or overcharged.
How to Transfer Vehicle Ownership in Ontario?
What Documents Required to Change Ownership?
When buying or selling a vehicle in Ontario, it’s important to understand what documents are required for a smooth transfer of ownership. The following are the necessary documents needed to complete the process:
- Firstly, you will need the vehicle’s original registration permit. This document contains critical information about your car, such as its make and model, year of manufacture, VIN (Vehicle Identification Number), and license plate number.
- Secondly, you will need a bill of sale from the seller with their name and address on it. Make sure that all details on the bill of sale match those on the registration permit.
- Thirdly, if there is an outstanding loan balance on your vehicle purchase, then ensure that form UVIP (Used Vehicle Information Package) is available with all details regarding any liens or encumbrances against your new car.
- Fourthly, you must present proof of insurance for your new car before transferring ownership.
- Finally, a government-issued photo ID such as a driver’s licence or passport is essential to verify identity during vehicle transactions.
Having all these documents ready when starting the transfer process is crucial so that everything goes smoothly without any hiccups along the way.
Selling a Vehicle
Selling a vehicle in Ontario requires following certain procedures and providing specific documents. Firstly, you need to have ownership of the vehicle, and it should be free from any liens or loans. If there are any outstanding fines on the vehicle, they must be paid before selling it.
Next, you need to get a Used Vehicle Information Package (UVIP) from ServiceOntario. The UVIP contains all important information about the vehicle, such as its history, accidents, and previous owners.
Once you have found a buyer for your car, both parties will need to sign a Bill of Sale, which includes details such as the sale price and date of transfer. It is also advisable to provide a receipt for payment made by the buyer.
After completing these steps, you can then transfer ownership at ServiceOntario within six days of selling the car. This process involves providing necessary documents, such as a bill of sale, a UVIP package, and signed application forms for registration and vehicle insurance.
By following these guidelines when selling your vehicle in Ontario, you can ensure that everything goes smoothly while transferring ownership.
Pro Tip: Don’t Lose Your “Plate Portion”
When you sell your vehicle, the green ownership permit is designed to be separated into two halves.
- The “Vehicle Portion” (Right Side): You sign this and give it to the buyer. This officially releases your interest in the car.
- The “Plate Portion” (Left Side): YOU KEEP THIS. Do not give it to the buyer.
Why you need it: You must have the Plate Portion to attach your existing plates to a new vehicle later. Additionally, if you do not plan on getting a new car, you can take this slip to ServiceOntario to see if you are eligible for a refund on any remaining months of your registration.
Buying a Vehicle
Buying a vehicle can be an exciting experience, but ensuring you have all the necessary documentation and information before purchasing is important.
- Firstly, make sure you are buying from someone legally able to sell the vehicle. It’s also crucial to obtain a Used Vehicle Information Package (UVIP) which provides details about the history of the car.
- When inspecting the car, take note of any damages or issues with its condition. Consider taking it for a test drive as well. Once you’ve decided to purchase the vehicle, make sure to obtain proof of ownership from the seller and complete a bill of sale.
- When transferring ownership at ServiceOntario, bring all relevant documents, including proof of insurance and driver’s license. You will also need to pay for applicable fees, such as registration and licensing costs.
- Buying a vehicle requires attention to detail and careful consideration to ensure that both parties are protected throughout the transaction process.
Transfer of Ownership Process
Ontario’s transfer of ownership process is a crucial step that must be completed when buying or selling a vehicle. It involves the legal transfer of ownership from one person to another and requires specific documents to be provided.
To begin, both parties involved in the transfer must complete the necessary paperwork. This includes completing and signing an Application for Transfer along with providing proof of insurance.
Once this has been done, the seller should remove their license plates and registration sticker from the vehicle while also keeping their portion of the Vehicle Registration Document (VRD). The buyer then takes possession of the vehicle and its remaining documentation.
It’s important for both parties to notify ServiceOntario about the completed transaction within six days. Penalties or fines may apply if this is not done.
While it may seem like a daunting task, following these steps will ensure a smooth transfer of ownership process that is legally binding and properly documented for all parties involved.
Transfer of License Plates
The transfer of license plates is an important step in the process of transferring vehicle ownership in Ontario. This allows the new owner to keep the same license plate number and avoid purchasing new ones.
To transfer your license plates, you must first remove them from your current vehicle by visiting a ServiceOntario location and completing a plate surrender form. You will then be issued a plate ownership certificate to give to the new owner.
The new owner will need this certificate, along with their proof of insurance and registration, when they visit a ServiceOntario location to complete the transfer of ownership process. They will also need to pay any applicable fees during this visit.
It’s important to note that personalized or specialty plates cannot be transferred between individuals. These types of plates are registered specifically to one person and cannot be transferred without cancelling and reapplying for a new personalized or specialty plate.
By following these steps, you can successfully transfer your license plates and ensure a smoother transition of ownership for both parties involved.
Transferring Out of Province Vehicles
Transferring out-of-province vehicles can be a bit more complicated than transferring ownership within Ontario. In order to transfer an out-of-province vehicle, the owner must provide proof of ownership and registration from their previous jurisdiction.
The first step is to obtain a Safety Standards Certificate (SSC) from an approved inspection station in Ontario. This will ensure that the vehicle meets safety standards and can be registered in this province.
Once the SSC has been obtained, the owner must bring it along with their existing registration and proof of insurance for the vehicle to a ServiceOntario location. They will also need to provide identification, such as a driver’s license or passport.
If there is any outstanding financing on the vehicle, it is important to contact the lienholder before attempting to transfer ownership. The lienholder may have specific requirements or documentation needed for the transfer process.
It’s worth noting that some provinces require emissions testing prior to transferring an out-of-province vehicle. If your previous jurisdiction requires this, you will need to provide proof of compliance before registering your car in Ontario.
While transferring an out-of-province vehicle may seem daunting at first, following these steps should help make things go smoothly and get you on your way with your newly acquired ride!
Dealing With Loans and Liens
When it comes to transferring ownership of a vehicle that still has an outstanding loan, there are some extra steps involved in the process. First and foremost, contacting your lender and informing them of your intention to transfer ownership is important.
The lender will likely require you to pay off the remaining balance on the loan before allowing you to transfer ownership. This means you’ll need to work out a payment plan or find other sources of financing if needed.
Once the loan is paid off, you can proceed with transferring ownership as usual by completing all necessary paperwork and submitting it to ServiceOntario. Keep in mind that this process may take longer than normal due to the additional steps involved.
It’s also worth noting that if you’re buying a vehicle with an outstanding loan, you’ll want to ensure that the seller pays off their debt before transferring ownership. Otherwise, you could end up responsible for paying off their remaining balance yourself.
Dealing with loans when transferring vehicle ownership can be a bit more complicated but manageable with proper communication and planning.
How to Transfer Ownership to a Family Member?
Transferring ownership to a family member in Ontario is relatively straightforward. The process is similar to transferring ownership when selling a car, but some important differences exist.
First and foremost, the seller must have proof of ownership and provide it to the buyer (the family member). This can be done by showing the vehicle’s registration certificate or bill of sale. If the current owner has lost these documents, they will need to apply for duplicates before proceeding with the transfer.
Next, both parties must complete and sign an Application for Transfer form (available online or at ServiceOntario locations). The buyer must also show identification that proves their name and address.
Once all necessary documentation is gathered, the new owner needs to visit a ServiceOntario location within six days of completing the transaction. They will also need to pay any applicable fees and taxes at this time.
Transferring ownership within a family should be relatively easy as long as both parties have all required documentation ready beforehand.
How to Transfer Ownership When Selling a Car?
Selling a vehicle can be an exciting but overwhelming experience. Knowing the steps required to transfer ownership when selling a car in Ontario is important.
First, ensure that you have all the necessary documents, such as the vehicle registration, insurance certificate and safety standards certificate. You will also need a signed bill of sale from both parties involved in the transaction.
Next, visit your nearest ServiceOntario location with all the required documentation to complete the transfer of ownership process. The buyer must provide identification and payment for any fees associated with transferring ownership.
It is crucial that both parties sign off on the back of the vehicle registration permit and keep their respective copies for future reference. This document acts as proof of ownership transfer and protects both parties from potential legal issues down the road.
Remember to cancel your insurance policy once you have completed the transfer process. Failure to do so could result in paying for unnecessary coverage expenses.
By following these simple steps, you can successfully transfer ownership when selling a car in Ontario without any hassle or confusion.
How to Transfer Vehicle Ownership After Death?
Losing a loved one is never easy, and dealing with the transfer of their vehicle ownership can add another layer of complexity. If the deceased owned a vehicle in Ontario, knowing how to properly transfer ownership is important.
Firstly, you will need to obtain a copy of the death certificate. This document is required for any legal transactions related to the estate. Once you have this, you will need to fill out an Application for Transfer form and provide proof that the deceased person owned the vehicle.
If more than one surviving spouse or executor is listed on the will, all parties must sign off on transferring ownership. Additionally, if there are any outstanding liens or loans on the vehicle, those debts must be settled before the transfer can occur.
It’s also worth noting that there may be tax implications when transferring ownership after death. Consult with an accountant or lawyer who specializes in estate planning to ensure compliance with relevant tax laws.
Transferring vehicle ownership after death requires careful attention and adherence to legal procedures. Don’t hesitate to seek professional assistance if needed during this process.
Tax Exemption on Vehicle Transfer
When it comes to transferring vehicle ownership in Ontario, there are certain tax exemptions that you should be aware of. These exemptions apply to specific situations, such as transfers between family members or spouses and transfers due to the death of the owner.
If you’re transferring a vehicle to a family member or spouse, you may be eligible for a tax exemption. Both parties must complete an affidavit confirming their relationship and sign the appropriate sections on the transfer application form to qualify for this exemption.
In cases where a vehicle is transferred due to the owner’s death, a tax exemption is also available. The executor or administrator of the estate can claim this exemption by providing proof of their authority and completing the necessary forms.
It’s important to note that any outstanding fines or fees associated with the transferred vehicle will still need to be paid in full before completing the transfer process.
Understanding these tax exemptions can help make your vehicle ownership transfer process smoother while saving you money along the way.
Final Checklist: Don’t Leave Home Without These
To ensure you don’t have to make two trips to ServiceOntario, use these checklists to verify you have everything.
For the Seller (Your Responsibilities)
- The UVIP: Provide the buyer with a Used Vehicle Information Package (ordered within the last 30 days is best).
- The Permit: Sign the back of the “Vehicle Portion” (the right side of your green ownership paper).
- The Plates: Remove your license plates. You keep these; they do not go with the car.
- Bill of Sale: Complete and sign the Bill of Sale (usually found inside the UVIP).
For the Buyer (What to Bring to ServiceOntario)
- The Signed Permit: The “Vehicle Portion” given to you by the seller.
- The UVIP: Ensure the lien information is clear.
- Identification: Your Ontario Driver’s License or valid Passport.
- Proof of Insurance: A valid Ontario digital or paper pink slip.
- Safety Certificate: The DriveON Safety Standards Certificate (if you want “Fit” status/plates).
- Payment: Be ready to pay the $32 fee plus the 13% Retail Sales Tax (RST).
Conclusion
After going through the transfer of vehicle ownership process in Ontario, it is clear that there are many rules and regulations to follow. It can be overwhelming for some individuals, but it can be a smooth process with proper guidance and documentation.
One important thing to remember is that the documents required may vary depending on the situation. For example, transferring ownership after death requires different paperwork than selling a vehicle or transferring plates. It is also crucial to note that dealing with loans during the transfer process can be complex. It’s best to contact your lender beforehand to ensure all necessary steps are taken care of.
When it comes to transferring vehicle ownership in Ontario, being organized and informed will make a significant difference in completing the process successfully.
FAQ – How to Transfer Vehicle Ownership in Ontario?
Can you transfer car ownership online in Ontario?
Not for most private sales. While Ontario is expanding digital services, most private person-to-person transfers in 2026 still require an in-person visit to a ServiceOntario centre. The physical “vehicle portion” of the green permit must be surrendered, and the buyer typically needs to collect new physical plates. Online transfers are currently primarily available for specific dealership transactions or through the “Digital Dealer” pilot program.
What is needed to change ownership of a car in Ontario?
To complete a transfer, the buyer must bring the following to ServiceOntario:
- Proof of Identity: A valid Ontario Driver’s License.
- The Vehicle Permit: The “vehicle portion” (right side) signed by the seller.
- Used Vehicle Information Package (UVIP): Provided by the seller, containing the Bill of Sale and lien history.
- Proof of Insurance: A valid Ontario auto insurance policy.
- Safety Standards Certificate (SSC): Required if you intend to plate the vehicle and drive it immediately.
Do you need insurance to transfer ownership in Ontario?
Yes. You cannot register a vehicle in your name or obtain license plates without providing proof of a valid Ontario auto insurance policy. If you are buying a car, you must call your insurance provider with the VIN (Vehicle Identification Number) to add the car to your policy before heading to ServiceOntario.
How much does it cost to transfer ownership in Ontario?
The standard administrative fee for a vehicle permit and ownership transfer is $32. However, the buyer is also responsible for paying 13% Retail Sales Tax (RST). This tax is calculated based on the higher of the purchase price or the Canadian Red Book wholesale value listed in the UVIP.
How long do I have to register a car after buying it?
In Ontario, you are legally required to register the transfer of ownership within 6 days of the sale. While you will receive your new ownership permit immediately at the ServiceOntario counter, failure to register within the 6-day window can result in fines or complications if the vehicle is pulled over or involved in an incident.
Essential Official Links:
- Find a ServiceOntario Location Near You (Check hours and book appointments).
- Order a UVIP Online (Cost: $20, delivered by mail).
- Download Form 1157E (For Tax-Free Family Transfers).
