GST/HST quick method calculator
The quick method lets small service businesses remit a flat percentage of sales instead of tracking every input tax credit. Whether it saves you money depends on how much GST/HST you pay on expenses. Put in your numbers and see both methods side by side.
Showing a worked example: an Ontario service business with $90,000 in sales and $1,500 of GST/HST paid on expenses. Change the numbers to see yours.
The quick method would save you about $1,234 a year.
| Sales before tax | $79,646 |
| GST/HST collected at 13% | $10,354 |
| Input tax credits (tax paid on expenses) | − $1,500 |
| You remit | $8,854 |
| 8.8% of tax-included sales | $7,920 |
| 1% credit on the first $30,000 | − $300 |
| You remit | $7,620 |
Break-even: the two methods remit the same when your GST/HST paid on expenses is about $2,734. Below that, the quick method wins; above it, the regular method does.
How the quick method works
Under the regular method you remit the GST/HST you collected minus the GST/HST you paid on business expenses (your input tax credits). You need receipts for every credit you claim.
Under the quick method you still charge customers the full GST/HST, but you remit a fixed percentage of your tax-included sales (8.8% in Ontario for a service business, 3.6% in GST-only provinces, 10% in the 15% HST provinces). You keep the difference and give up most input tax credits. A 1% credit applies to the first $30,000 of tax-included sales each fiscal year.
The quick method tends to win for businesses with few taxable expenses: consultants, developers, designers, trades with low material costs. It tends to lose once you buy a lot of taxable goods or services.
Who can elect it
- Worldwide taxable sales, GST/HST included, of $400,000 or less in the last four quarters (or the last fiscal year), counting associated businesses.
- You have been registered for GST/HST for at least a year, unless you are a new registrant electing from your first day.
- Not a listed financial institution, charity, public institution, or a business providing legal, accounting, bookkeeping, tax, actuarial or financial consulting services.
- You elect by filing form GST74 or online in CRA My Business Account, generally by the due date of the first return for the period you want it to start. Once elected, it stays until you revoke it, and a revocation locks you out for a year.
Questions
Can I still claim GST/HST on a laptop or a vehicle under the quick method?
Yes. Input tax credits on capital property, such as computers, vehicles and equipment, can still be claimed under the quick method. Only credits on operating expenses are given up.
Does the quick method change what I charge my clients?
No. You charge and show the normal GST/HST on every invoice. The quick method only changes how much of it you remit to the CRA.
Is the amount I keep taxable income?
Yes. The portion of GST/HST you collect but do not remit is business income for income-tax purposes and belongs on your T2125.
What if I sell to clients in other provinces?
The quick-method rate depends on where your business is located and where each sale is made. This calculator assumes all sales are in your own province. If a large share of your clients are elsewhere, run the CRA worksheet in guide RC4058 with the split rates.
Loonie Logs does this with your real numbers
Every expense you scan carries its GST/HST, so the app shows collected, paid, quick vs regular, and your instalment schedule all year, then hands your preparer the package.
Get the appThis is general information, not tax advice. Your situation may differ; confirm with your tax preparer or the CRA. Rates shown are CRA figures for 2025. Source: CRA guide RC4058, Quick Method of Accounting for GST/HST.