Gifting a Car to a Family Member in Quebec: SAAQ and QST

Gifting a car to a family member in Quebec is allowed and, in most cases, it escapes the 9.975% QST, whether it is a child who just got a licence, the family SUV passed to a parent or simply helping a loved one. But the exemption is not automatic. It depends on a precise legal definition of the word “family,” and above all on a form that many people discover at the counter. Here is how it really works, verified with the SAAQ and Revenu Québec.

The basic rule is surprising: a gift is taxable

Contrary to intuition, the starting point of the law is not the exemption. Revenu Québec is clear: under the QST regime, the gift of a used road vehicle that must be registered is generally taxable at the rate of 9.975%, and the tax is then calculated on the estimated value of the vehicle, not on zero, even if no money changes hands.

The QST does not apply in three specific situations: the vehicle is the subject of a transaction between related individuals (or between an aunt or uncle and their niece or nephew), with form VD-80.1 filled out and signed by both people; the vehicle is given by the estate of a deceased person, according to their will or the rules of transmission of property; or the vehicle is transferred between individuals in payment of rights arising from their marriage, or following a divorce, a legal separation, an annulment of marriage or a death.

In other words: it is not the free nature of the gesture that removes the tax, it is the proven relationship between the two people. The rest of this article follows from that.

Who exactly is a “related individual”

The list is not a matter of interpretation: it is written on Revenu Québec's form VD-80.1. In addition to being related to their spouse, an individual is related to:

• their child, biological or adopted (legally or in fact);
• the spouse of their child (son-in-law or daughter-in-law);
• their grandchildren and great-grandchildren;
• their brother or sister;
• the spouse of their brother or sister (brother-in-law or sister-in-law);
• their stepson or stepdaughter, that is, the child of their spouse;
• the spouse of their stepson or stepdaughter;
• the grandchildren and great-grandchildren of their spouse;
• the brothers and sisters of their spouse, and their spouses.

The word spouse also has a strict definition: a person united by a marriage or civil union in force at the time of the transaction, or a common-law spouse at that time. And a common-law spouse is someone who lives maritally with the other and is the biological or adoptive parent of at least one of their children, or who has lived maritally with the other for at least 12 consecutive months (a breakup of less than 90 days does not interrupt that count).

The uncle, niece and cousin trap

This is where most articles get it wrong. Form VD-80.1 says it in black and white: an individual is not related to their uncles, aunts, cousins, nephews and nieces, nor to those of their spouse, unless they are related to them in one of the ways listed above.

But a separate provision catches some of these cases: Revenu Québec treats the transfer of a used road vehicle between an aunt or uncle and their niece or nephew as a transfer between related individuals. The practical result is therefore the same for them.

The consequence is clear: giving a car to your nephew works, giving a car to your cousin does not. A cousin, a friend, a roommate or a neighbour is covered by neither rule. The transaction then becomes ordinary and the QST applies, on the price paid or on the estimated value, whichever is higher.

“I'll sell it to my son for $1”: what really happens

The most widespread belief in Quebec is that the SAAQ automatically re-taxes a symbolic sale on the valuation guide value. That is not what Revenu Québec says.When a used vehicle is the subject of a transaction between related individuals for a price lower than the estimated value, whether or not any money is paid, the QST is calculated on the sale price agreed between the parties. The estimated value does not enter the calculation.

A “$1 sale” between a parent and their child therefore costs about ten cents of QST, and not 9.975% of the valuation guide value. The usual warning is false for related people. For everyone else, it remains perfectly true: between two unrelated individuals, the QST is calculated on the higher of the price paid and the estimated value, and a courtesy invoice changes nothing.

That said, the free gift remains the best tool between eligible relatives. There is no price to justify, no consideration to document, and the form is the same. A sale at a symbolic price adds a variable for no gain.

The real risk: showing up without the form or the proof

Here is the sentence that should appear on every page covering this subject, and it comes straight from form VD-80.1: if the individuals do not present this declaration or the documents proving the relationship between them, the SAAQ will collect the QST on the higher of the agreed price and the estimated value, and, in the case of a gift, on the estimated value of the vehicle.

On a car with a valuation guide value of $12,000, that comes to about $1,197 of QST paid at the counter for a vehicle received for free, simply because a birth certificate was missing from the file.

Two other points are worth knowing. First, the verification doesn't stop at the counter: it is Revenu Québec that determines, after the SAAQ has sent it the declaration, whether the QST should have been collected and on what amount. It can then request documents and claim a balance from the acquirer, with interest and penalties. Second, if the donor has a debt on the vehicle and the recipient takes it on, in whole or in part, the amount assumed is added to the sale price (or to zero, in the case of a gift) and the QST is collected on that total. A “gift” of a financed car is therefore not necessarily a gift at zero.

If you are unable to provide proof of the relationship, there is a way out: ask Revenu Québec, before registration, for a QST determination certificate using form VD-55.1. This certificate allows you to be exempted in whole or in part from payment at the counter, or to have the value on which the tax will be collected set.

The SAAQ steps, one by one

The gift cannot be settled online. The SAAQ states it unambiguously: the person you are giving the vehicle to and you must go to a service point to do the transfer. This is a fundamental difference from an ordinary private sale, which goes through SAAQclic in most cases. If one of the two people cannot be present, the other must bring a power of attorney, available at a service point or on the SAAQ website.

1. Check that the vehicle is in good standing. The donor must have paid their outstanding amounts (registration, tickets). A stored vehicle will have to be re-registered or transferred as the case may be.
2. Fill out form VD-80.1 (Déclaration de transaction entre particuliers liés portant sur un véhicule routier). Both people fill it out and sign it, stating the exact relationship between them; it is this declaration that removes the QST.
3. Bring proof of the relationship and the identification of both people, as well as the vehicle's registration certificate.
4. Register in the recipient's name. The SAAQ records the new owner and collects the applicable fees.

What it really costs in 2026

Even without QST, fees remain payable by the recipient. Here are the official SAAQ rates for 2026:

Additional contributions may apply depending on the vehicle and the place of residence: duties for a luxury vehicle, duties for a high-displacement vehicle, and a public transit contribution within the ARTM territory. Check your exact situation with the SAAQ before going in. If the family relationship is ultimately not eligible and the QST applies, our tax calculator gives the exact amount based on the agreed price or the estimated value. For the full procedure of an ordinary change of owner, see our guide on the transfer of ownership and registration at the SAAQ.

Documents to prepare before you go

• the vehicle's registration certificate (the “little paper”);
• the valid photo identification of the donor and the recipient;
• the form VD-80.1 filled out and signed by both people;
• the proof of the relationship: long-form birth certificate, copy of the birth record, adoption judgment, marriage contract or certificate, copy of the marriage record, civil union certificate or copy of the record, or driver's licence as the case may be;
• a power of attorney if one of the two people cannot attend;
• proof of insurance in the new owner's name: third-party liability is mandatory from registration, and driving without it exposes you to a fine of $325 to $2,800.

A few points not to overlook

Once the vehicle is in their name, the recipient is responsible for its maintenance and compliance. Think about winter tires, mandatory in Quebec from December 1 to March 15 (mountain/snowflake symbol), especially for a young driver. If the gift concerns an end-of-life vehicle, it is not a transfer but taking the vehicle off the road with an approved recycler, a different procedure: see our guide on taking a vehicle off the road or selling it (or, if the vehicle no longer runs, selling a scrap car). And if the relative doesn't plan to use the vehicle right away, they can store it (suspend the registration) and then take it out of storage later.

Finally, if the gift is meant to free up space or help a relative get on the road, we can help on the other side of the transaction. You can sell your vehicle or get a free appraisal of its value, or explore our used vehicle inventory in the North Shore of Montreal and the Laurentians, from Saint-Joseph-du-Lac to Saint-Eustache, Deux-Montagnes, Mirabel and Saint-Jérôme. And if financing comes into play, our payment calculator gives a quick idea of the monthly budget.

Giving a vehicle to a relative remains one of the simplest transactions in Quebec, on one condition: arrive at the counter with the right form and the proof of the relationship. The gesture is free, the law is not by default. It is the VD-80.1 that makes the difference between $0 and several hundred dollars of QST.