A gift is not automatically tax-free
In British Columbia, gifting a vehicle is a tax event as well as a transfer of ownership. The Ministry of Finance says you must pay PST on a vehicle you receive as a gift unless a specific exemption applies. If no exemption applies, the tax is calculated on the fair market value of the vehicle, not on a zero dollar bill of sale.
If you receive the vehicle as a gift outside B.C. and then bring it into the province, PST is based on fair market value on the date the vehicle enters B.C.
A gift does not include a loan takeover or anything else of value given in return. If money changes hands, or if the recipient takes over the loan, the ministry treats that as a purchase, not a gift. A purchase follows the private-sale tax rules on the used-car tax guide, not the gift form.
Who counts as a related individual
The common exemption for gifting a vehicle in BC is a gift between related individuals. It is not enough that you are family in everyday language. The donor must also have paid an applicable tax (or another province’s sales tax) on the vehicle and not be eligible for a refund, credit, or rebate of that tax — or have been exempt from PST (or the older TDP or SST taxes) — or have received the vehicle as a gift in B.C. before April 1, 2013.
Bulletin PST 308 (revised August 2026) lists a related individual as: a person’s spouse (legally married, or living for a continuous period of at least two years with another person in a marriage-like relationship), child, grandchild, great grandchild, parent, grandparent, great grandparent, or sibling; the spouse of a person’s child, grandchild, or great grandchild; or the child, parent, grandparent, or great grandparent of a person’s spouse.
Cousins, in-laws outside that list, friends, and “we have always treated them like family” do not qualify. Confirm the current list on gov.bc.ca before you treat the transfer as tax-free.
Only one gift of a specific vehicle between related individuals is eligible for the exemption in a 12-month period. PST applies to a later gift of that same vehicle within 12 months, unless the vehicle is gifted back from the recipient to the original donor.
The ICBC gift letter is FIN 319
The ICBC gift letter people look up is the provincial Gift of a Vehicle form, numbered FIN 319. It is a Ministry of Finance form, not a letter ICBC writes for you. You and the person giving the vehicle both complete and sign it.
Take the signed FIN 319 to an Autoplan broker with the ICBC Transfer/Tax Form (APV9T) and the signed vehicle registration. If the vehicle is coming from outside B.C., you also need proof that the donor paid tax on it. The broker collects any PST that is still due when the new owner registers and insures the vehicle.
Do not copy the official form. Download FIN 319 from the Government of B.C. forms page, or use the sale and transfer kit on this site to build a personal checklist that points to the official documents. Keep a copy. The ministry may audit the transfer.
Transferring ownership to a family member vs selling
Transferring ownership of a car to a family member in B.C. still uses the same ICBC transfer paperwork as a private sale: APV9T plus the signed registration. The difference is tax. A true related-family gift may use FIN 319. A sale, even to a child or parent, uses the private-sale PST rules (greater of price or Canadian Black Book average wholesale value) and, if the car is worth less than book, the FIN 320 appraisal form.
FIN 319 and FIN 320 are different jobs. FIN 319 claims a gift exemption. FIN 320 records an appraised value for a purchase. One does not replace the other.
If you are not sure which path you are on, start with the sale and transfer kit and pick “gifting or transferring a vehicle to family.” The kit does not decide your tax. Your Autoplan broker applies the current rules to the documents you bring.
When the gift is taxable
If the recipient is not a related individual, or the donor has not paid a qualifying tax, or consideration was given, PST is due on fair market value. For a passenger vehicle the rate follows the same bands as other private transfers: 12% on most cars, 15% from $125,000, and 20% from $150,000. Those bands are explained on the luxury car tax page. There is no GST on a private gift from a person who is not a GST registrant.
Do not guess the dollar amount from this page. Use the BC vehicle tax calculator to see the rate bands, then confirm the number with your Autoplan broker. The ministry can assess extra tax, penalty, and interest if the documented value does not match fair market value.
A high-value gifted car can land in the 15% or 20% band the same way a private sale can. That is still PST, not a separate federal luxury tax.
Inheritance and relationship-breakdown transfers
Two other exemptions sit beside gifting and use different proof. If you receive a vehicle as part of a deceased person’s estate, PST is not charged when you provide a copy of the death certificate and will (the usual documents the bulletin describes).
A transfer from a spouse or former spouse can be exempt when it is done under a Family Law Act property-division agreement, a written separation or marriage agreement, or a court order on the breakdown of a marriage or marriage-like relationship. If that exemption does not apply, PST is generally due on 50% of fair market value.
Those paths are not FIN 319 gifts. Bring the estate or family-law papers the broker asks for. This page is only about gifting a vehicle in BC.
What this website can do today
Use the free sale and transfer kit to prepare a personal record and a checklist for a gift or family transfer. Use the tax calculator if the gift may be taxable. This website publishes information and free tools. It is not a licensed appraisal service today, and it cannot issue an official gift letter or a signed FIN 319 for you.
If a later licensed appraisal is offered, that will be a separate service. Until then, treat everything here as a guide to the official forms. Confirm current rules on gov.bc.ca and with an Autoplan broker before you register the vehicle.
FAQs
Is gifting a vehicle in BC tax-free?
Not automatically. PST is charged on the fair market value of a gifted vehicle unless a specific exemption applies. The usual exemption is a gift from a related individual who already paid (or was exempt from) a qualifying tax, claimed with FIN 319.
What is an ICBC gift letter?
People call it an ICBC gift letter, but the document is the provincial Gift of a Vehicle form, numbered FIN 319. You and the donor both sign it. You take it to an Autoplan broker with the ICBC Transfer/Tax Form (APV9T). ICBC does not write this letter for you.
What is FIN 319?
FIN 319 is the Government of B.C. Gift of a Vehicle form used to claim a PST exemption on a vehicle received as a gift from a related individual or, in other cases, a registered charity. It is not the FIN 320 appraisal form used when a purchased car is worth less than book value.
Can I transfer ownership of a car to a family member in BC without tax?
Only if the transfer qualifies as an exempt gift (or another listed exemption such as inheritance or a qualifying relationship-breakdown transfer). Being related is not enough on its own. The donor must meet the tax-paid (or exempt) tests, and you must complete FIN 319. A sale to a family member is taxed as a private sale.
Does taking over the car loan count as a gift?
No. If the recipient takes over a loan or gives anything of value in return, the ministry treats it as a purchase, not a gift. PST then follows the private-sale rules, not FIN 319.
Can the same car be gifted tax-free twice in one year?
Generally no. Only one gift of a specific vehicle between related individuals is eligible for the exemption in a 12-month period, except if the vehicle is gifted back to the original donor.
How do I gift a car in BC, step by step?
Confirm the recipient is a related individual and that the donor meets the tax-paid or exempt tests. Complete FIN 319 and the ICBC Transfer/Tax Form (APV9T). The new owner takes those papers, identification, and the signed registration to an Autoplan broker to register and insure the vehicle. Use the sale and transfer kit on this site as a checklist, then follow the official forms.
Informational only, not tax or legal advice or an ICBC determination. Gift and family-transfer rules can change; confirm current PST exemptions and forms at gov.bc.ca and with an Autoplan broker before you register a vehicle.