GST/HST Quick Method Calculator 2026 Canada
Calculate GST/HST Quick Method savings for Canadian small businesses in 2026. The Quick Method lets businesses with up to $400,000 in annual taxable supplies remit a flat percentage of GST/HST collected rather than tracking input tax credits (ITCs). Compare to the regular method to see which saves more. Free CRA-aligned tool — runs in your browser.
How the GST/HST Quick Method Works
The Quick Method is an alternative way to calculate GST/HST owing to the Canada Revenue Agency for small businesses. Instead of tracking every Input Tax Credit (ITC) on business expenses, you charge customers the regular GST/HST rate (5% GST, 13% HST in Ontario, 15% HST in Atlantic provinces) but remit only a fixed Quick Method percentage of your GST/HST-included revenue. The difference between collected and remitted is your business\'s tax saving. You\'re also entitled to a 1% credit on the first $30,000 of taxable supplies each fiscal year. To use the Quick Method, your annual worldwide taxable revenue (including associated parties) must not exceed $400,000 — this threshold was raised from $200,000 effective Budget 2018. Most service businesses save money with Quick Method; goods retailers with high cost of goods sold typically do not. Source: CRA RC4058 — Quick Method of Accounting.
2026 Quick Method Remittance Rates by Province
The Quick Method rate depends on (a) the type of supply (selling goods vs providing services) and (b) the province where the customer is located. For service businesses selling to Ontario (HST 13%), the remittance rate is 8.8%; selling to non-HST provinces (Alberta, BC, etc., GST 5% only), the rate is 3.6%. For goods retailers selling to Ontario, the rate is 4.4% (lower because goods typically have larger ITC pools); selling to non-HST provinces, the rate is 1.8%. Atlantic HST provinces (NB, NS, PE, NL — all 15%) have higher remittance rates because the collected tax is higher. The 1% credit on the first $30,000 of supplies further reduces remittance. See the full rate matrix at CRA Quick Method Rates Table.
Election and Election Cancellation
To use the Quick Method, file Form GST74 (Election and Revocation of an Election to Use the Quick Method of Accounting) by the due date of the first GST/HST return for which the election will apply. The election must be made by the first day of the second fiscal quarter in which you want to start using the method, or earlier. Once elected, you must continue using the Quick Method for at least one full fiscal year before revoking. You cannot use Quick Method if you are: a charity that has elected to use the net tax calculation for charities, a public service body, certain real-estate-focused businesses, financial institutions, or a person whose primary activity is providing certain services like legal accounting, bookkeeping, financial consulting, tax preparation, or actuarial services to its own clients (these are explicitly excluded by §227(4) ETA). Source: CRA Form GST74.
When Quick Method Saves Money — and When It Doesn\'t
Quick Method generally saves money when your business has LOW input costs (mostly labour and intangible expenses) — typical for consultants, freelancers, IT services, marketing agencies, and personal trainers. For a $100,000 service business in Ontario (HST 13%): Regular method remittance after $3,000 of ITCs = $13,000 - $3,000 = $10,000. Quick Method remittance = ($113,000 × 8.8%) - 1% credit on first $30,000 = $9,944 - $300 = $9,644. Quick Method saves $356. Quick Method does NOT save money for goods retailers with high inventory cost (because ITCs on inventory would exceed the Quick Method discount), restaurants (high food/beverage cost), and capital-intensive businesses (large equipment purchases). Always run both calculations annually — your inputs may shift between years and change which method wins. See our GST/HST Calculator for the regular method. Last updated May 2026.
Frequently Asked Questions
What is the GST/HST Quick Method?
The Quick Method is a simplified way for small Canadian businesses to calculate GST/HST owing to the CRA. Instead of tracking individual Input Tax Credits (ITCs), you remit a fixed percentage of your GST/HST-included sales. You also get a 1% credit on the first $30,000 of supplies each fiscal year. To qualify, your worldwide annual taxable revenue (including associated parties) must not exceed $400,000.
Who can use the Quick Method?
Most small businesses with annual taxable supplies under $400,000 (raised from $200,000 in Budget 2018). Excluded: charities using the net-tax-calculation-for-charities method, public service bodies, financial institutions, and certain professional service providers (legal accounting, bookkeeping, financial consulting, tax preparation, actuarial services — these are explicitly excluded by §227(4) of the Excise Tax Act).
What are the 2026 Quick Method rates?
For service businesses: Ontario customer (HST 13%) → 8.8% remittance rate; Atlantic provinces (HST 15%) → 10.0%; Quebec → 3.6%; GST-only provinces (AB/BC/SK/MB/Territories) → 3.6%. For goods retailers: Ontario → 4.4%; Atlantic → 5.0%; Quebec → 1.8%; GST-only → 1.8%. Rates are set by CRA and have been stable for many years.
How do I elect to use the Quick Method?
File Form GST74 (Election and Revocation of an Election to Use the Quick Method of Accounting) by the due date of the first GST/HST return for which you want the election to apply. The election must be effective by the first day of the second fiscal quarter in which you want to use it. Once elected, you must use Quick Method for at least one full fiscal year before revoking via the same Form GST74.
Can I still claim ITCs on capital purchases under Quick Method?
Yes, for limited categories. Under Quick Method, you cannot claim ITCs on most operating expenses (the Quick Method rate is already discounted to account for typical ITC pools). However, you CAN claim ITCs on capital purchases like equipment, vehicles, and real property — and on improvements to capital property. These ITCs are claimed in addition to the Quick Method remittance reduction. Track capital purchases separately.
Does Quick Method work for Quebec QST?
No — Quick Method is a federal GST/HST election only. Quebec QST (9.975%) is administered by Revenu Quebec and has a separate (though similar) Quick Method election for QST purposes under the QST regime. You can elect both — the federal Quick Method handles your GST 5% remittance on Quebec sales, and the Quebec QST Quick Method handles your QST 9.975% remittance.
When should I NOT use Quick Method?
Three situations: (1) Goods retailers with high inventory cost — ITCs on inventory typically exceed the Quick Method discount. (2) Restaurants and food businesses with high food/beverage cost. (3) Capital-intensive businesses making large equipment purchases — the year of purchase, regular method may dominate. (4) Mixed-supply businesses where some sales are zero-rated (exports, basic groceries) — Quick Method generally treats zero-rated supplies less favourably. Run both calculations annually.