Ontario Private Car Sale Tax & Red Book Rules (2026)

How ServiceOntario compares Bill of Sale price vs Red Book wholesale value

Primary sources: Ontario: Specified vehicles Retail Sales Tax (RST); Ontario: Used Vehicle Information Package.

Every private used car transfer in Ontario requires the seller to provide a $20 Used Vehicle Information Package (UVIP), which prints the Ministry's Canadian Red Book wholesale valuation for that specific 17-character VIN. At the counter, the clerk applies this valuation matrix:

When an appraisal or family gift exemption applies

Primary sources: Ontario: Specified vehicles Retail Sales Tax (RST); Ontario: Buy or sell a used vehicle.

You can only pay 13% RST below the Red Book wholesale value if you meet specific Ontario Ministry of Finance criteria:

• Damaged or high-mileage vehicles (Appraisal Rule): If the vehicle has severe mechanical wear, collision damage, or excessive mileage and you paid less than the Red Book wholesale value, an authorized dealer or licensed independent appraiser can complete an official Motor Vehicle Appraisal Record (FIN 320) within 60 days of purchase. ServiceOntario will then charge 13% RST on the greater of the purchase price or the appraised value.
• Vehicles with Red Book value under $1,000: If the UVIP lists a Red Book value below $1,000, tax is assessed on the actual purchase price without needing an appraisal.
• Qualifying family gifts (0% RST): Transfers between qualifying family members (spouse, parent, step-parent, grandparent, child, step-child, grandchild, sibling, or in-laws) are exempt from the 13% RST once per 12-month period when accompanied by a sworn Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (Form 1157E).
• Settlers and diplomats: Specific exemptions apply to new Ontario residents bringing personal vehicles owned for at least 30 days prior to moving.

Step-by-step Ontario private buyer registration checklist

Before handing over cash or visiting ServiceOntario within the mandatory 6-day registration window, complete these steps:

1. Verify the 17-character VIN: Run the vehicle's VIN through our Free VIN Decoder and VIN Listing Match Checker to confirm the door-jamb plate matches the green Ontario Vehicle Permit and UVIP.
2. Check liens and history: Compare page 2 of the UVIP with a commercial report—see our Ontario UVIP vs CARFAX comparison guide and Ontario UVIP Checklist.
3. Complete the Bill of Sale: Use the interactive generator above (or open the full Ontario Bill of Sale Generator) to print a dual-copy buyer/seller receipt with VIN, odometer reading, price, and signatures.
4. Bring required documents to ServiceOntario: Signed green Vehicle Permit (Application for Transfer portion), completed UVIP, Safety Standards Certificate (unless registering as "Unfit"), proof of Ontario auto insurance, and valid driver's licence.

Methodology and limitations

Tax calculations follow the Ontario Retail Sales Tax Act (R.S.O. 1990, c. R.31) and Ontario Ministry of Finance guidance for specified vehicles (13% RST). This guide and calculator provide pre-registration estimates and document templates; they do not replace official ServiceOntario counter assessment, Canadian Red Book database lookups on your printed UVIP, or legal advice on lien encumbrances. Verified October 24, 2026.

Sources: Ontario Ministry of Finance: Specified Vehicles Retail Sales Tax (RST); Ontario.ca: Buy or sell a used vehicle in Ontario; Ontario.ca: Used Vehicle Information Package (UVIP).