How much tax do you pay on a used car in Ontario?
Private sale: 13% retail sales tax, paid at ServiceOntario when you register, on the purchase price or the wholesale value in the UVIP, whichever is higher. From a dealer: 13% HST on the price, collected by the dealer.
Private sale: how it's calculated
The UVIP lists the car's average wholesale value from the Canadian Red Book. Ontario uses that as the floor, so writing a low price on the bill of sale doesn't lower your tax.
| You pay | UVIP wholesale value | Taxed on | Tax at 13% |
|---|---|---|---|
| $12,000 | $10,500 | $12,000 | $1,560 |
| $8,000 | $10,000 | $10,000 | $1,300 |
| $4,500 | $4,000 | $4,500 | $585 |
If the car is worth much less than the book value, for example because of damage, ask ServiceOntario before you register how to have a lower value considered. Don't understate the price on the bill of sale.
When you pay it
You pay when you register the car in your name at ServiceOntario, which you have to do within 6 days of buying it. Bring the UVIP with the bill of sale filled in, the signed ownership, proof of insurance, your licence and, if you're plating it, a Safety Standards Certificate. Registration and plate fees are separate.
Check the VIN on the car you're looking at
See where it was built and its model year, then check its title history for salvage, flood, odometer and theft records.
Buying from family
A transfer from a close family member can be exempt from the sales tax. ServiceOntario will ask for a sworn statement.
Buying from a dealer
The dealer charges 13% HST and handles the paperwork. Under Ontario's all-in pricing rule, the advertised price must include every fee except HST and licensing, so the price you saw plus HST and licensing should be close to the total.
Budget before you negotiate
On a $10,000 private sale, plan for about $1,300 in tax, plus registration, plates, a safety inspection and insurance. Knowing the full number helps you decide how far to negotiate.
Questions
Do I pay HST on a private used car sale in Ontario?
No. You pay 13% retail sales tax (RST) at ServiceOntario instead, at the same rate.
What if I paid less than the wholesale value?
Tax is normally charged on the higher of the two. Ask ServiceOntario about the process if the car is worth less because of its condition.
How long do I have to register a used car in Ontario?
6 days from the date of purchase.
Sources
General information, not legal advice. Rules change, so check the official source before you rely on a detail.