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# The GST/HST Quick Method: keep more of the tax you collect

Most contractors don't know the Quick Method exists — and it can hand you real money. Instead of tracking sales tax on every receipt, you remit a flat percentage of your tax-included sales and keep the rest. On $90,000 of Ontario service revenue that's about **$3,050** back in your pocket. Pick your province below for your number — and, honestly, when it's *not* worth it.

Your provinceThe Quick Method rate follows your province's HST rate (13.0%).

Annual revenue (before HST)What you invoice in a year, before adding HST.

What kind of business?Most trades bill labour, so the 8.8% service rate usually applies here.

HST you pay on operating expenses a yearThe HST you'd otherwise claim back on tools, fuel, supplies, phone and software (not capital items — you keep those either way). Low input costs are what make the Quick Method win.

On $90,000 of revenue in Ontario, 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:

- Your printable **2026 Contractor Tax Report** — every calculator in one accountant-ready PDF
- Line-by-line breakdown with the CRA rule cited for each amount
- 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 →](https://buy.stripe.com/cNicN49A9csD49lfL4enS0j)[Already paid? Restore your pass →](https://tradestaxcalculator.ca/unlock/)Checking for an existing pass…

### What this assumes (read before you rely on it)

- Quick Method rate follows your province: 3.6% (5% GST provinces), 8.8% (Ontario, 13% HST) or 10.4% (15% HST provinces) for services; goods-for-resale rates are lower.
- Applies to the common case where your business and your customers are in the same province.
- In GST-only provinces, any separate provincial sales tax (PST/RST) is not part of this and is remitted separately.
- 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). A planning estimate, not tax advice.

## How it works, in one line

You charge customers the normal GST/HST. Under the regular method you'd remit that minus the tax on your purchases. Under the **Quick Method** you instead remit a flat, lower percentage of your total tax-included sales, plus a **1% credit on your first $30,000**, per [the CRA's RC4058 Quick Method guide](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4058/quick-method-accounting-gst-hst.html). The gap between what you collected and what 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.

## The service rate by province (2026)

Same $90,000 of service revenue, same modest expenses — what you keep depends on your province's rate:

| Alberta / BC (5% GST) — 3.6% rate | keeps ~$1,398 |
| --- | --- |
| Ontario (13% HST) — 8.8% rate | keeps ~$3,050 |
| Nova Scotia (15% HST) — 10.4% rate | keeps ~$3,036 |

A higher HST province collects more tax, so even at a higher Quick Method rate there's more to keep. Change the numbers in the tool above for your own case — it's taxable income.

## Before you elect it

Electing the Quick Method doesn't change whether you have to charge GST/HST in the first place — that still turns on [the CRA's $30,000 small-supplier threshold](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html).

- [Do you even have to register?The $30,000 small-supplier threshold, and when to register early.](https://tradestaxcalculator.ca/gst-hst-threshold/)
- [What should you charge?Your rate is before tax — work out the rate that nets you a living.](https://tradestaxcalculator.ca/hourly-rate-calculator/)
- [Employee vs self-employedThe tax you keep here is taxable income — see the bigger picture.](https://tradestaxcalculator.ca/employee-vs-self-employed/)
- [Quarterly installmentsOnce you're established, income tax comes due four times a year.](https://tradestaxcalculator.ca/tax-installments/)

## Common questions

### What is the GST/HST Quick Method and how much can it save?

The Quick Method is a simplified way to remit sales tax: instead of tracking the GST/HST on every purchase, you remit a flat percentage of your tax-included sales — for a service business that's 3.6% in 5% GST provinces, 8.8% in Ontario, or 10.4% in the 15% HST provinces. You keep the difference between what you collected and what you remit. On $90,000 of Ontario service revenue with modest expenses, that's about $3,050 kept, roughly $1,850 better than the regular method.

### What are the Quick Method rates by province?

For a service business whose customers are in the same province: 3.6% in the 5% GST provinces (Alberta, BC, Saskatchewan, Manitoba and the territories), 8.8% in Ontario (13% HST), and 10.4% in the 15% HST provinces (Nova Scotia, New Brunswick, Newfoundland, PEI). Businesses that mostly buy goods to resell use lower rates: 1.8%, 4.4% and 6.1% respectively. Quebec has its own system and isn't covered.

### 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 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 tax-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 GST/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 is the amount you keep: on the $90,000 Ontario example that's about $3,050 — if your reclaimable tax 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, which is why capital purchases don't change the quick-vs-regular comparison.

**The Quick Method rewards clean records** — you still track sales and capital purchases. [Blue Crane](https://bluecraneworks.ca/) captures the receipts and totals your invoiced sales so electing the Quick Method is a decision, not a shoebox.

Quick Method rates verified 2026-08-03: [CRA — RC4058 Quick Method of Accounting for GST/HST](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4058/quick-method-accounting-gst-hst.html). A planning estimate, not tax advice — you must elect the Quick Method with the CRA (form GST74).

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Source: https://tradestaxcalculator.ca/hst-quick-method/