GST/HST Quick Method
The GST/HST quick method: every remittance rate, who can use it, a worked comparison, the return and how to elect.
The short version
- The quick method lets eligible small businesses remit a fixed percentage of their GST/HST-included sales, instead of tracking input tax credits on every operating expense.
- You can use it if your annual worldwide taxable sales (including GST/HST) are $400,000 or less. Lawyers, accountants, bookkeepers, tax preparers, financial consultants, charities and some others can't.
- The rate depends on whether you mainly provide services or resell goods, where your business is, and the rate charged to the customer. An Ontario service business remits 8.8% of HST-included sales made at 13%.
- You get a 1% credit on the first $30,000 of eligible sales each year, and you can still claim ITCs on capital purchases such as computers and vehicles.
- Elect on form GST74 (or online). It suits businesses with low taxable expenses; it costs money for businesses with high ones.
GST/HST Quick Method
The quick method is CRA admitting that for a lot of small businesses, tracking the tax on every coffee and printer cartridge isn't worth anybody's time. Instead, you remit a set percentage of your sales and keep the difference between that and what you collected. For a consultant with a laptop and a phone, it's often cheaper as well as simpler. For a business with big supply bills, it can be a quiet way to overpay. Here's how to tell which you are.
Remittance Rates
Rates apply to the GST/HST-included amount of sales. Use the row for where your permanent establishment is, and the column for the rate charged on the sale.
| Businesses providing services | Sales at 5% | Sales at 13% | Sales at 14% | Sales at 15% |
|---|---|---|---|---|
| Business in a GST-only province or territory | 3.6% | 10.5% | 11.3% | 12.0% |
| Business in Ontario | 1.8% | 8.8% | 9.6% | 10.4% |
| Business in Nova Scotia | 1.6% | 8.6% | 9.4% | 10.2% |
| Business in NB, NL or PEI | 1.4% | 8.4% | 9.2% | 10.0% |
| Businesses reselling goods (cost of goods at least 40% of revenue) | Sales at 5% | Sales at 13% | Sales at 14% | Sales at 15% |
|---|---|---|---|---|
| Business in a GST-only province or territory | 1.8% | 8.8% | 9.6% | 10.4% |
| Business in Ontario | 0% (2.8% credit) | 4.4% | 5.3% | 6.1% |
| Business in Nova Scotia | 0% (3.4% credit) | 3.9% | 4.7% | 5.6% |
| Business in NB, NL or PEI | 0% (4.0% credit) | 3.3% | 4.2% | 5.0% |
Nova Scotia rates reflect its 14% HST from April 1, 2025. Zero-rated sales (exports, basic groceries) and exempt sales aren't included in the quick method calculation.
Would the quick method save you money?
Enter your sales by province, your taxable expenses and capital purchases. The SmartFile calculates your net tax both ways for a full year and tells you which method costs less.
A Worked Comparison
| Ontario consultant, $80,000 of fees to Ontario clients | Regular method | Quick method |
|---|---|---|
| HST collected (13%) | $10,400 | $10,400 (kept within $90,400 of sales) |
| ITCs on operating costs (phone, software, supplies, fuel) | ($900) | Not claimed |
| Remittance | $9,500 | 8.8% x $90,400 = $7,955, less 1% x $30,000 = $7,655 |
| Saving | About $1,845 |
The same business with $15,000 of taxable expenses ($1,950 of ITCs) would still come out about $800 ahead with the quick method. A contractor buying $40,000 of materials a year usually wouldn't; see the driver example on rideshare taxes, where the regular method wins.
Who Can't Use It
- Businesses with annual worldwide taxable sales (including GST/HST, excluding zero-rated and some other items) over $400,000.
- Lawyers, accountants, actuaries, bookkeepers, financial consultants, tax consultants and tax return preparers.
- Listed financial institutions, charities, public institutions, qualifying non-profits, municipalities, universities, colleges, school authorities and hospital authorities.
How It Works on the Return
- Multiply your GST/HST-included eligible sales for the period by the remittance rate; enter the result on line 103.
- Subtract the 1% credit on the first $30,000 of eligible sales in the fiscal year, on line 107.
- Claim ITCs only on capital purchases (other than real property) and certain other items, on line 106.
- Calculate net tax as usual; see net tax calculation.
The difference between the tax you collected and the tax you remitted under the quick method is income for income tax purposes. Report it with your business income on form T2125.
Electing and Leaving
- Elect on form GST74, or through My Business Account, by the due date of the return for the first period you want to use it. Annual filers have until the due date of the return for that year.
- Stay at least one year before revoking, unless you become ineligible.
- Leave automatically if your sales go over $400,000; revoke voluntarily by filing the revocation form.
There's also a simplified method for calculating ITCs, which keeps the regular method but makes the bookkeeping easier. More on ITCs is on input tax credits explained, and registering on how to register. Back to the GST/HST guide.
Quick Method Questions
What is the GST/HST quick method?
An optional way for eligible small businesses to calculate GST/HST remittances as a fixed percentage of their GST/HST-included sales, instead of claiming input tax credits on most operating expenses.
What is the quick method rate in Ontario?
For an Ontario business that mainly provides services, 8.8% of HST-included sales made at 13%. For an Ontario business that mainly resells goods, 4.4%.
Who can use the quick method?
Most businesses with annual worldwide taxable sales, including GST/HST, of $400,000 or less. Legal, accounting, bookkeeping, tax preparation and financial consulting businesses cannot.
Can I claim ITCs under the quick method?
Only on capital purchases other than real property, such as computers, equipment and vehicles, and a few other items.
Is the quick method saving taxable income?
Yes. The difference between the GST/HST you collected and the amount you remitted is included in your business income for income tax.
Sources: CRA, RC4058 Quick Method of Accounting for GST/HST; Form GST74. Checked October 2026. The comparison is illustrative. The income tax treatment of the quick method difference is standard practice; we did not find it stated on the RC4058 page itself.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.