The GST/HST Quick Method is an optional simplified accounting method that lets eligible small businesses remit a fixed percentage of their gross sales to the CRA instead of calculating the difference between GST/HST collected and Input Tax Credits (ITCs) claimed. For many service-based freelancers, it reduces paperwork and often results in a lower GST/HST payment.
How the Quick Method Works
Under the standard GST/HST method, you:
- Collect GST/HST from clients (e.g., 13% in Ontario)
- Claim ITCs on your business expenses
- Remit the difference to the CRA
Under the Quick Method, you simply:
- Collect GST/HST from clients as normal
- Remit a fixed percentage of your total GST/HST-included revenue to the CRA
- Keep the difference as profit
You do not track ITCs individually (except for purchases of real property and capital assets, which are still eligible for ITCs).
Quick Method Remittance Rates for 2026
The remittance rate you use depends on your province and type of business. For service-based businesses (which covers most freelancers):
| Province | Rate on taxable supplies |
|---|---|
| Ontario (HST 13%) | 8.8% |
| BC, Alberta, Saskatchewan, Manitoba (GST 5%) | 3.6% |
| Nova Scotia (HST 14%) | 9.7% |
| New Brunswick, NL, PEI (HST 15%) | 10.5% |
| Quebec (GST 5% only, QST separate) | 3.6% (federal only) |
You also get a 1% credit on the first $30,000 of sales in the year you register for the Quick Method.
Example: Ontario Freelancer Saving with Quick Method
Scenario: Ontario-based consultant, $100,000 in billings to Canadian clients (HST-exclusive), minimal claimable expenses.
Standard method:
- GST/HST collected: $100,000 × 13% = $13,000
- ITCs on $8,000 expenses: $8,000 × 13% = $1,040
- Remittance: $13,000 − $1,040 = $11,960
Quick Method:
- Total revenue including HST: $113,000
- Remittance: $113,000 × 8.8% = $9,944
- Savings: $11,960 − $9,944 = $2,016
The Quick Method saves this freelancer $2,016 with less paperwork. The savings are larger when your business expenses are low relative to your revenue — typical for service-based freelancers with few claimable supplies.
Who the Quick Method Does NOT Benefit
The Quick Method is less beneficial (or detrimental) if:
- You have significant HST-bearing business expenses (equipment, software, rent in an HST province) — you give up those ITCs
- You sell goods rather than services (different remittance rates apply)
- You serve primarily zero-rated clients (exports, US clients) — Quick Method is less useful with low or zero GST/HST collected
Run the numbers for your situation before electing. A CPA can compare both methods in 15 minutes using your actual numbers.
Who Qualifies for the Quick Method
To use the Quick Method you must:
- Be registered for GST/HST
- Have total annual revenues of $400,000 or less (including GST/HST)
- Have been registered for GST/HST for at least one year (in most cases)
Certain businesses are excluded: accountants, lawyers, and some financial services — check CRA’s Excise Tax Act or consult your accountant.
How to Elect the Quick Method
- File Form GST74 (Election and Revocation of an Election to Use the Quick Method of Accounting) with the CRA
- The election takes effect on the first day of the reporting period you specify
- You remain on Quick Method until you revoke it or your revenue exceeds $400,000
You can elect the Quick Method through CRA My Business Account online — no paper form required.
Quick Method and Your GST/HST Return
Under Quick Method, your GST/HST return is simpler. You report total revenue (including GST/HST) and multiply by your remittance rate. The filing deadlines remain the same — quarterly or annual depending on your filing period. The 1% credit on your first $30,000 is applied automatically on the first return after electing.
Frequently Asked Questions
Can I switch back to the standard method if the Quick Method stops benefiting me?
Yes. You can revoke the election once per year, effective the first day of a reporting period. File Form GST74 to revoke.
Do I still collect GST/HST from clients on Quick Method?
Yes. You collect HST at the normal rate (13% in Ontario, etc.). Only the remittance calculation changes — your clients are unaffected.
Is the “profit” from the Quick Method taxable?
Yes. The amount you keep (the difference between HST collected and the Quick Method remittance) is included in your business income and reported on your T2125. It is not tax-free money — it is a permanent difference that gets taxed as income.
Does the Quick Method apply to my provincial QST in Quebec?
Quebec has its own Quick Method for QST through Revenu Québec, similar to the federal version. You elect them separately.