This guide reflects the rules for the tax year ending December 31, 2025.
It applies to individuals filing their 2025 tax return in 2026.
The GST/HST Quick Method is an alternative way for small businesses to calculate the GST/HST they owe. Instead of claiming Input Tax Credits (ITCs) on expenses, you apply a reduced remittance rate to your sales — and keep the difference.
For many freelancers and contractors, the Quick Method results in significant tax savings.
🧭 1. What Is the GST/HST Quick Method? #
Under the Quick Method:
- You charge GST/HST at the normal rate
- But you remit less to CRA using a reduced rate
- You keep the difference as profit
- You do not claim ITCs (except on capital assets)
This method is ideal for service‑based businesses with low expenses.
📈 2. Who Is Eligible? #
You can use the Quick Method if:
- Your worldwide taxable revenues (including zero‑rated supplies) were $400,000 or less in the previous year
- You are a GST/HST registrant
- You are not in an excluded profession
Excluded businesses include: #
- Accountants
- Lawyers
- Bookkeepers
- Financial consultants
- Real estate agents
- Charities
- Public institutions
Most freelancers, contractors, and online businesses are eligible.
📊 3. Quick Method Remittance Rates (2025) #
Rates depend on your province and whether you sell goods or services.
Example rates for service businesses: #
| Province | GST/HST Charged | Quick Method Rate |
|---|---|---|
| Ontario | 13% | 8.8% |
| Nova Scotia | 15% | 10.4% |
| New Brunswick | 15% | 10.4% |
| Newfoundland & Labrador | 15% | 10.4% |
| PEI | 15% | 10.4% |
| All GST provinces | 5% | 3.6% |
You also get a 1% credit on the first $30,000 of eligible sales.
🧮 4. How the Quick Method Works (Step-by-Step) #
Step 1 — Charge GST/HST normally #
Example (Ontario):
You charge 13% HST on your invoices.
Step 2 — Apply the Quick Method rate #
Instead of remitting 13%, you remit 8.8%.
Step 3 — Keep the difference #
This difference is your profit.
Step 4 — Claim the 1% credit #
On the first $30,000 of eligible sales.
🧮 5. Full Example: Ontario Freelancer #
You bill $100,000 in Ontario.
GST/HST collected: #
\[ 100,000 \times 0.13 = 13,000 \]Quick Method remittance: #
\[ 100,000 \times 0.088 = 8,800 \]1% credit on first $30,000: #
\[ 30,000 \times 0.01 = 300 \]Total remitted: #
\[ 8,800 - 300 = 8,500 \]Your profit: #
\[ 13,000 - 8,500 = 4,500 \]You keep $4,500 — tax‑free.
💰 6. When the Quick Method Saves You Money #
The Quick Method is ideal if:
- You have low expenses
- You do not pay much GST/HST on purchases
- You are a service‑based business
- You want simpler bookkeeping
It is not ideal if:
- You buy expensive equipment
- You pay a lot of GST/HST on expenses
- You rely heavily on ITCs
🧾 7. How to Register for the Quick Method #
You must file:
Form GST74 — Election and Revocation of an Election to Use the Quick Method #
You can file:
- Through CRA My Business Account
- By mail
- Through your accountant
The election takes effect:
- At the start of your next reporting period
- Or immediately if you register at the beginning of your business
🔄 8. Leaving the Quick Method #
You can revoke the election by filing Form GST74 again.
You must leave the Quick Method if:
- Your revenues exceed $400,000
- You become an excluded business
❓ 9. Frequently Asked Questions #
Do I still charge GST/HST normally? #
Yes — clients see no difference.
Do I still claim ITCs? #
Only on capital assets (e.g., computers, equipment).
Can I switch back to the regular method? #
Yes — by filing Form GST74.
Does the Quick Method reduce my income tax? #
No — the savings are treated as business income.
Is the Quick Method good for freelancers? #
Often yes — especially for low‑expense service businesses.
🔗 10. Related Guides #
- GST/HST for Self-Employed Canadians
- Self-Employment Expenses
- Self-Employment Tax Deductions
- T2125 Step-by-Step Guide
