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-included eligible sales (sales + tax collected). Rates vary by the GST/HST rate zone and by whether your business is in the service/other group or the CRA-qualified goods/resale group, assuming your permanent establishment and the eligible supplies are in the same rate zone:

• 5% GST provinces/territories: 3.6% (service/other) / 1.8% (qualifying goods)
• 13% HST Ontario: 8.8% (service/other) / 4.4% (qualifying goods)
• 14% HST Nova Scotia: 9.4% (service/other) / 4.7% (qualifying goods)
• 15% HST provinces (NB, NL, PE): 10.0% (service/other) / 5.0% (qualifying goods)

The lower goods/resale rate group generally requires that the GST/HST-included cost of qualifying goods purchased for resale or for use in goods produced/manufactured for sale be at least 40% of relevant GST/HST-included taxable sales for the applicable CRA test period. Businesses making eligible supplies across more than one GST/HST rate zone may need more than one Quick Method remittance rate — this calculator only models a single same-rate-zone scenario.

When your Quick Method election was in effect at the beginning of your fiscal year (or, for a new registrant, on the day you became a registrant), you are entitled to a 1% credit on the first $30,000 of your GST/HST-included eligible revenue. For monthly or quarterly filers, the credit generally applies through reporting periods until the first $30,000 of eligible annual revenue has been used; for annual filers, it applies to the first $30,000 in the fiscal year. Unused credit does not carry forward.

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

CRA generally bases this test on your prior fiscal year. If you began using the Quick Method in the current fiscal year, CRA may require the calculation using the applicable first or last four consecutive quarters of the previous five quarters. This calculator does not reconstruct that history automatically — enter the applicable numerator (qualifying goods purchases) and denominator (taxable sales) yourself for the correct CRA test period.

Exactly 40.000% qualifies for the lower goods/resale rate. Below 40%, the service/other-business rate applies instead.

One condition is that GST/HST-included worldwide taxable supplies (including those of associates, over the applicable CRA test period) are not more than $400,000. The applicable test period differs for an established business (generally either of the first four or last four of the last five fiscal quarters) versus a new registrant (a reasonable expectation for the first full year). Passing this revenue condition alone does not confirm overall eligibility — CRA also considers business type exclusions, continuous-registration or new-registrant conditions, prior revocation, and permanent establishment in Canada, among other requirements.

Some business types are excluded from the Quick Method, including:

• Bookkeeping services
• Financial consulting
• Tax consulting
• Tax return preparation
• Legal professional services
• Accounting professional services
• Actuarial professional services
• Listed financial institutions
• Certain charities, public institutions and public service bodies

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 be a GST/HST registrant and 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. 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 inputs with low GST/HST-bearing expenses, the Quick Method typically results in a lower net GST/HST amount. For businesses with significant eligible expenses (equipment, inventory, materials), the regular method’s input tax credits may reduce net GST/HST more. This calculator estimates both — enter your ITCs to refine the comparison. The result depends on your actual revenue, ITCs, and business circumstances.

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 amounts CRA still permits, such as qualifying capital-property or real-property items. Check with CRA or a qualified tax professional for the current rules on ITC claims under the Quick Method.

One condition is that GST/HST-included worldwide taxable supplies (including those of associates) are not more than $400,000 over the applicable CRA test period. For an established business, CRA looks at the first four or last four of the last five fiscal quarters; for a new registrant, CRA has a separate reasonable-expectation rule for the first full year. If you expect to exceed the applicable threshold, confirm with CRA whether you must revert to the regular method.

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.