HST/GST: Quick Method vs Regular
If you're a Canadian freelancer or sole proprietor registered for GST/HST, the Quick Method lets you keep a slice of the tax you collect instead of tracking every input tax credit. See which method remits less for 2026 — and the exact expense level where the answer flips.
Which method wins as expenses rise
Net GST/HST you'd remit under each method as your HST-taxable expenses climb from $0 to half your revenue. They cross at your break-even.
Where the Quick Method money comes from
The quick method charges a flat rate on tax-included sales, then hands back a 1% credit on your first $30,000 and any capital-purchase ITCs. Regular remits all tax collected minus all ITCs.
Side-by-side breakdown
Every line in both calculations, for your numbers.
| Line | Regular | Quick Method |
|---|
How this is calculated
The regular method (input tax credits)
You collect GST/HST on every sale and remit it, minus the tax you paid on business purchases (input tax credits, or ITCs). Net remittance is revenue × rate − expenses × rate − capital × rate. Nothing is kept — the tax simply flows through you to the CRA.
The Quick Method
Instead of tracking ITCs on operating costs, you remit a flat percentage of your tax-included sales and keep the rest. Net remittance is revenue × (1 + rate) × quickRate − 1% × min($30,000, revenue × (1 + rate)) − capital × rate. The 1% credit applies to your first $30,000 of GST/HST-included eligible supplies each fiscal year. Crucially, you still claim full ITCs on capital purchases (equipment, computers, vehicles) even on the quick method — but not on day-to-day expenses.
2026 remittance rates (permanent establishment supplying its own province)
Services: Ontario 8.8%, Nova Scotia 9.4%, 15% HST provinces (NB/NL/PE) 10.0%, GST-only 5% provinces 3.6%. Goods resale: Ontario 4.4%, Nova Scotia 4.7%, 15% HST 5.0%, GST-only 1.8%. Nova Scotia's HST dropped to 14% on 1 April 2025, with matching quick rates. The lower goods rates apply only if the cost of goods you buy for resale is at least 40% of your total taxable supplies. Rates verified July 2026 against CRA RC4058.
Your break-even
Set the two methods equal and solve for expenses: E = revenue − revenue × (1 + rate) × quickRate ÷ rate + 1% × credit ÷ rate. If your HST-taxable operating expenses come in below that figure, the Quick Method remits less; above it, the regular method wins. (Capital ITCs cancel out, so they don't move the break-even.)
Eligibility & election
You can elect the Quick Method if your worldwide taxable supplies (including GST/HST) were $400,000 or less over the last four consecutive fiscal quarters, and you're not an excluded profession (accountants, bookkeepers, financial or tax consultants, lawyers, listed financial institutions). Elect with Form GST74, effective on or before the first day of the reporting period it applies to — you can file it in your CRA My Business Account. You must register for GST/HST once your revenue passes $30,000 over any single quarter or four consecutive quarters.
What this doesn't model
The saving shown is before income tax. The amount you keep is taxable business income on your T2125 — enter your marginal rate above to see the after-tax figure. This tool also ignores provincial PST/QST (which is separate and not covered by the quick method), mixed goods/services businesses, the 40%-of-supplies test for goods rates, sales to other provinces, and the special first-year rules. Confirm with your accountant before electing. See also the freelance rate calculator and income tax calculator.