The HST Quick Method: keep more of the tax you collect
Most Ontario contractors don't know the Quick Method exists — and it can hand you real money. Instead of tracking HST on every receipt, you remit a flat 8.8% of your HST-included sales and keep the rest. On $90,000 of service revenue that's about $3,050 back in your pocket. This tells you your number — and, honestly, when it's not worth it.
On $90,000 of revenue, the Quick Method remittance is:
$8,650
you collected $11,700 in HST — so about $3,050 stays in your pocket
Worth it as long as the HST you'd reclaim on expenses stays under $3,050 a year. That amount you keep is taxable income.
See exactly where every dollar goes
You have the number. The 2026 Tax-Year Pass shows the working behind it:
- Line-by-line breakdown with the CRA rule cited for each amount
- An accountant-ready PDF of your numbers to hand over or keep
- The incorporation break-even tool — should you incorporate, and what it saves
- Your numbers saved on this site through the whole filing season
$5 · one time · covers the entire 2026 tax year
Get the 2026 Pass →Already paid? Restore your pass →Checking for an existing pass…
What this assumes (read before you rely on it)
- Ontario rates only: 13% HST, 8.8% service / 4.4% goods Quick Method rate on HST-included revenue.
- Other provinces' Quick Method rates differ (15% HST provinces and GST-only provinces aren't covered here yet).
- You keep input tax credits on capital property (vehicle, major equipment) under both methods, so they're left out of the comparison.
- You must formally elect the Quick Method with the CRA (form GST74); you can't just start using it.
- A planning estimate, not tax advice — confirm with your accountant before electing.
How it works, in one line
You charge customers the normal 13% HST. Under the regular method you'd remit that minus the HST on your purchases. Under the Quick Method you instead remit just 8.8% of your total HST-included sales (4.4% if you mostly resell goods), plus a 1% credit on your first $30,000. The gap between the 13% you collected and the ~8.8% you remit is yours to keep. It works because a labour-heavy trade doesn't buy enough taxable supplies to make tracking real input tax credits worth more than that gap.
Two worked examples (Ontario, 2026)
| $90,000 revenue, services, low expenses | keeps ~$3,050 |
|---|---|
| $150,000 revenue, services, modest expenses | keeps ~$4,884 |
“Keeps” is the HST collected minus the Quick Method remittance, before income tax. Remember it's taxable income. Change the numbers in the tool above for your own case.
Before you elect it
- Do you even have to register?The $30,000 small-supplier threshold, and when to register early.
- What should you charge?Your rate is before HST — work out the rate that nets you a living.
- Your income tax and CPPThe HST you keep is taxable — see the full-year bill.
- Quarterly installmentsOnce you're established, income tax comes due four times a year.
Common questions
What is the HST Quick Method and how much can it save?
The Quick Method is a simplified way to remit HST: instead of tracking the HST on every purchase, you remit a flat percentage of your HST-included sales — in Ontario, 8.8% for a service business or 4.4% if you mostly buy goods to resell. You keep the difference between the 13% you collected and what you remit. On $90,000 of service revenue with modest expenses, that's about $3,050 kept, and roughly $1,850 better than the regular method.
Who is eligible for the Quick Method?
Most small businesses whose annual worldwide taxable supplies (including the GST/HST, and including associates) are $400,000 or less. A few businesses are excluded — accountants, bookkeepers, financial consultants and some others — but the trades generally qualify. You have to formally elect it with the CRA using form GST74.
What is the 1% credit?
On top of the reduced rate, the Quick Method gives you a 1% credit on the first $30,000 of your HST-included eligible supplies each fiscal year — worth up to $300. The calculator applies it automatically.
When is the Quick Method NOT worth it?
When you pay a lot of HST on your business purchases. Under the Quick Method you give up your input tax credits on operating expenses, so if those credits are large you're better off with the regular method. The break-even here is the amount you keep: on the $90,000 example that's about $3,050 — if your reclaimable HST on expenses is below that, the Quick Method wins; above it, it doesn't.
Can I still write off my truck or equipment under the Quick Method?
Yes. You keep your input tax credits on capital property — a work vehicle, major tools, equipment — even on the Quick Method. It's only the ITCs on routine operating expenses (fuel, supplies, phone) that you give up. That's why capital purchases don't change the quick-vs-regular comparison.
Does the Quick Method change my income tax?
Indirectly. The HST you keep under the Quick Method counts as taxable income, so you pay income tax and CPP on it. It's still a net gain, just not tax-free — budget for the tax on the amount you keep.
The Quick Method rewards clean records — you still track sales and capital purchases. Blue Crane captures the receipts and totals your invoiced sales so electing the Quick Method is a decision, not a shoebox.