What is the GST/HST Quick Method?

The GST/HST Quick Method is a simplified accounting option for small businesses registered for GST/HST. Instead of remitting every dollar of GST/HST you collected minus ITCs on every expense, you remit a fixed percentage of your total sales including GST/HST. The Quick Method has two remittance rates: a service rate (for businesses that primarily provide services) and a goods rate (for businesses that primarily sell goods). The rates vary by province because they are calibrated to approximate average business input costs in each sector. You still charge your clients the full applicable GST/HST rate (e.g., 13% in Ontario), but you remit only the Quick Method rate (e.g., 8.8% for services in Ontario). The difference stays in your pocket as a benefit. You can claim no ITCs under the Quick Method except for capital property costing $10,000 or more (you claim ITCs on those separately).

Who is eligible to use the GST/HST Quick Method?

To use the Quick Method, your annual taxable revenues (including GST/HST) from all your businesses must be $400,000 or less in the last fiscal year. Excluded businesses that cannot use Quick Method regardless of size: accountants and bookkeepers providing financial services; financial institutions; charities; anyone providing legal, accounting, or actuarial services for a fee; air service businesses; businesses that primarily sell goods they buy for resale at a fixed price determined by a supplier; non-profit organizations in most cases. Most freelancers, consultants, contractors, and small service businesses are eligible. File CRA Form RC4058 (or look up current Quick Method remittance rates in the RC4058 guide) and elect on Form RT-1 per the instructions for your filing period.

When does the Quick Method save me money vs the regular method?

The Quick Method saves money when your actual ITC claims on regular expenses would be less than the spread between the full GST/HST rate and the Quick Method remittance rate. Simple test: collect the GST/HST you charged; calculate your Quick Method remittance; compare to what you would actually remit under the regular method (GST/HST collected minus all ITCs). For a typical service-based consultant in Ontario with few business expenses other than a home office and phone, the Quick Method almost always wins — the difference between 13% collected and 8.8% remitted (4.2%) represents automatic savings, while actual ITCs on modest expenses would be far less. The Quick Method loses ground when you have significant HST-paid business expenses — for example, buying equipment or running a business with many suppliers with large GST/HST invoices.

How do I elect to use the Quick Method?

File a completed Form RT-1 (Election and Revocation of the Quick Method of Accounting) with CRA. You can file it through My Business Account online or mail it to the CRA tax centre. The election takes effect the first day of a reporting period, and you must file it by the due date of your return for the reporting period in which you want it to take effect. You can revoke the election by filing another RT-1. The election is generally locked in for one year before you can revoke it (though CRA may grant exceptions). Once elected, you must use the Quick Method for all your GST/HST-registrant business activities — you cannot use it for some activities and not others. You also become ineligible to claim ITCs on normal operating expenses (only on capital purchases over $10,000 and on the first $30,000 of annual eligible capital property).

Do I get any ITC credit under the Quick Method?

Yes — two. First, you get a 1% credit on the first $30,000 of eligible revenue annually. This means on the first $30,000 of your annual GST/HST-inclusive sales, you multiply by the Quick Method rate minus 1%. This is built into the Quick Method remittance calculation on your return. Second, you can claim ITCs on purchases of capital property costing $10,000 or more (computer systems, equipment, vehicles) — these are excluded from the Quick Method and claimed normally. You cannot claim ITCs on ordinary operating expenses (phone bills, software subscriptions, professional development, supplies) under the Quick Method. This is why the Quick Method works best for businesses with low recurring taxable expenses — the spread between collected and remitted rates exceeds the forgone ITCs on small operating expenses.

GST/HST Quick Method vs Regular Method Canada 2026 — Which Saves More?

Quick Method Remittance Rates by Province (2026)

Province	Full Rate Charged to Client	Quick Method — Services Rate	Quick Method — Goods Rate
Ontario	13% HST	8.8%	1.8%
Nova Scotia	15% HST	10.0%	2.0%
New Brunswick	15% HST	10.0%	2.0%
PEI	15% HST	10.0%	2.0%
Newfoundland & Labrador	15% HST	10.0%	2.0%
British Columbia	5% GST	3.6%	0.6%
Alberta	5% GST	3.6%	0.6%
Saskatchewan	5% GST	3.6%	0.6%
Manitoba	5% GST	3.6%	0.6%
Quebec (federal GST portion only)	5% GST	3.6%	0.6%

Note: QST in Quebec is separate — a similar Quick Method exists for QST, administered by Revenu Québec. Rates effective for 2026 filing periods; always confirm current rates via CRA RC4058 guide.

Quick Method vs Regular — Which Saves More?

Example: Ontario-based management consultant, $100,000 revenue, service-only

Item	Regular Method	Quick Method
Gross billings (excl. HST)	$100,000	$100,000
HST collected (13%)	$13,000	$13,000
Total invoiced to clients	$113,000	$113,000
HST remittance rate	13% − ITCs	8.8% of $113,000
ITCs on expenses (phone, software, supplies — est.)	−$500	N/A
1% credit on first $30,000 ($30,000 × 1%)	N/A	−$300
Net HST remitted to CRA	$12,500	$9,644
Annual saving with Quick Method	—	$2,856

Example: Ontario consultant with high business expenses ($15,000 in taxable purchases)

Item	Regular Method	Quick Method
HST collected	$13,000	$13,000
ITCs on $15,000 expenses (13%)	−$1,950	N/A (forgone)
Quick Method remittance (8.8% × $113,000 − $300)	N/A	$9,644
Net remitted	$11,050	$9,644
Quick Method still wins by	—	$1,406

When Regular Method wins: if ITCs exceed the Quick Method spread.

Break-even ITC point (Ontario services): 4.2% × ($113,000) = $4,746. If your annual ITCs on operating expenses exceed ~$4,746, the regular method saves more. For most consultants with low overhead, Quick Method is better.

Eligibility Summary

Rule	Detail
Revenue limit	Total taxable revenues ≤ $400,000 (including GST/HST, last fiscal year)
Business type exclusions	Accountants/bookkeepers, actuaries, lawyers charging fees, financial institutions, air services
First-year eligibility	Can elect on first return if expected revenue ≤ $400,000
Mixed goods/services	Use whichever rate (services or goods) applies to ≥90% of revenue; if split, must apportion
Revocation lock	Must use for minimum 1 full year before revoking

ITC Claims Still Allowed Under Quick Method

Claim Allowed	Details
Capital property $10,000+	Purchase GST/HST claimed in full as ITC on that return
1% credit on first $30,000 annual revenue	Automatically applied in remittance calculation
Qualifying passenger vehicle if business use tracked	ITC on capital cost; see CCA rules
NOT allowed	ITCs on routine operating expenses (phone, supplies, software, professional fees, advertising)

How to File Quick Method Returns

Line calculations on GST/HST return:

Line	Description
Line 101	Total sales and other revenue (before GST/HST)
Line 105	GST/HST collected (full rate — what you charged clients)
Line 135	Quick Method remittance amount (rate × [Line 101 + Line 105])
Line 107	Subtract ITC for capital property ≥ $10,000 if applicable
Line 109	Net tax owing = Line 135 − Line 107

Making the RT-1 Election

Step	Action
1	Log into My Business Account on CRA website
2	Under GST/HST, select “File Form RT-1”
3	Choose effective date (must be first day of a reporting period)
4	File before the due date of the return for that period
5	Confirm election is in place before filing first Quick Method return
Revoke	File another RT-1 with a revocation effective date

Quick Method and provincial sales tax (PST/QST)

The Quick Method applies only to federal GST/HST. It does not change how you handle provincial sales taxes:

Province	Situation
Ontario, Nova Scotia, New Brunswick, PEI, Newfoundland	HST covers both federal and provincial components — Quick Method applies to the full HST rate
Quebec	GST Quick Method election applies to GST only; QST has a separate “simplified method” election administered by Revenu Québec using Form VDQ-1
BC, Alberta, Saskatchewan, Manitoba	Only GST (5%) remittance is affected; provincial PST/RST remains separate and unchanged

In Quebec specifically, you must elect both the federal Quick Method and the QST simplified method separately if you want simplified reporting on both components.

Annual vs. quarterly filers and the Quick Method

The Quick Method is available regardless of your filing frequency. Most small businesses file quarterly, but annual filers (revenue under $1.5M) can use the Quick Method on an annual return. Semi-monthly and monthly filers are typically larger businesses where the Quick Method is less commonly used — but still available if eligible.