Tax exemption
You do not have to pay retail sales tax if:
You are a qualifying Diplomat or Status Indian. You can complete a transfer by showing your identity card.
You receive a vehicle as a gift from a close family member, such as:
Spouse
Parent or step-parent
Grand-parent
Son or step-son
Daughter or step-daughter
Grandson or granddaughter
Step-grandson or Step-granddaughter
Son-in-law
Daughter-in-law
Father-in-law
Mother-in-law
Brother or Sister
Half Siblings (siblings with a common parent)
Adopted Siblings (siblings with a common parent by way of adoption)
Siblings-in-law (siblings of a spouse of spouse of a sibling)
Note: Only one tax-free transfer per vehicle is allowed every 12 months within your close family.
For some transfers, such as gifts between close family members (describe above), are sales tax exempt if a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario is provided when registering your vehicle at a ServiceOntario Driver and Vehicle Licence Issuing Office. http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml