GST/HST Quick Method Calculator

Under the regular GST/HST method, you collect GST/HST from customers and remit the net amount after deducting input tax credits (ITCs) for GST/HST you paid on eligible business expenses. This requires careful bookkeeping of every business purchase.

The CRA Quick Method lets you instead remit a flat percentage of your GST/HST-inclusive revenue directly to CRA — without tracking most individual ITCs. You keep the difference between what you collected and what you remit. It is designed to simplify GST/HST for smaller businesses.

Quick Method rates apply to GST/HST-inclusive revenue (revenue + tax collected). Rates vary by the rate in your province and by whether your business primarily sells services or goods:

• 5% GST provinces: 1.8% (service) / 3.6% (goods)
• 13% HST Ontario: 8.8% (service) / 4.4% (goods)
• 15% HST provinces (NB, NL, PE): 10.5% (service) / 5.0% (goods)

Nova Scotia uses 14% HST and the standard Quick Method rate table published by CRA does not include a 14% rate. Confirm eligibility and the applicable rate directly with CRA.

When using the Quick Method, you are entitled to a 1% credit on the first $30,000 of your annual GST/HST-included revenue. This credit reduces your remittance in the first filing period of your fiscal year where you reach the $30,000 of GST-included revenue.

This calculator applies the 1% credit to up to $30,000 of your annual GST/HST-included revenue. The maximum credit is $300 (1% × $30,000).

The Quick Method is generally available to GST/HST registrants with annual taxable supplies (including GST/HST) under $400,000. You generally must have been registered for at least one year before electing. Some businesses are excluded:

• Accountants and bookkeepers
• Financial services
• Businesses that sell new residential housing
• Certain listed financial institutions
• Registrants using other special GST/HST accounting methods

Confirm your eligibility with CRA before electing the Quick Method. The election generally applies for one year and is renewed automatically unless cancelled.

The Quick Method is generally beneficial when your business expenses that include GST/HST are relatively low — typical of many service-based freelancers and consultants with minimal equipment or inventory.

If you have significant eligible business expenses with GST/HST (equipment purchases, inventory, rent with HST, professional services), the ITCs you could claim under the regular method may exceed the savings from the Quick Method flat rate. Enter your estimated annual ITCs above to compare.

To use the Quick Method, you must file an election with CRA (form GST74 or an online election through My Business Account). The election generally takes effect at the start of the next reporting period after CRA receives it and is generally irrevocable for one year. You must be registered and generally must have been registered for at least one year. Check CRA’s website for the current deadline and requirements.

If you are new to GST/HST, start with the GST/HST Registration Checker to confirm whether registration applies to your business first.

It depends on your business. For service businesses with low GST/HST-bearing expenses, the Quick Method typically results in a lower remittance. For businesses with significant eligible expenses (equipment, inventory, materials), the regular method’s input tax credits may reduce remittance more. This calculator estimates both — enter your annual ITCs to refine the comparison.

Yes. Under the Quick Method, you collect the full GST/HST rate from your customers and only remit the Quick Method percentage to CRA. The difference between what you collected and what you remit is yours to keep and is generally considered business income (and thus taxable income for income tax purposes). It is not an additional tax deduction — it is a reduction in the amount you owe to CRA.

Generally no, with some exceptions. Under the Quick Method, you generally cannot claim ITCs for most business operating expenses. However, you may still be able to claim ITCs on certain capital purchases, such as real property and other large capital assets. Check with CRA or a qualified tax professional for the current rules on capital ITC claims under the Quick Method.

Annual taxable supplies (including GST/HST) generally must be under $400,000 to use the Quick Method. If you expect to exceed this threshold, confirm with CRA whether you must revert to the regular method mid-year.

Quebec is not listed in this calculator because Quebec GST and QST are administered by Revenu Québec under separate rules. Revenu Québec has its own Quick Method equivalent. If you are in Quebec, contact Revenu Québec or a qualified professional for the current rules.

No. This calculator provides an educational estimate for planning purposes only. Confirm your actual Quick Method eligibility, applicable rate, and election timing with CRA or a qualified Canadian tax professional.