The short answer: under the GST/HST Quick Method you remit a flat percentage of your tax-included sales — for example 8.8% for an Ontario service provider — minus a 1% credit on your first $30,000, and you keep the rest of the tax you collected instead of claiming Input Tax Credits. It usually saves service businesses money when their taxable expenses are small. Enter your numbers below to see your break-even.
Goods rates need your cost of resale goods to be at least 40% of revenue. Most freelancers pick “services.”
Ontario · 13% GST/HST · Quick rate 8.8%
Roughly the sales tax on your taxable business spending. Under the Quick Method you forfeit most of these.
Quick Method saves you
$1,356
Choosing the Quick Method means remitting $1,356 less this year.
Quick Method
$9,644
you remit to CRA
Regular Method
$11,000
you remit to CRA
Break-even: the Quick Method wins whenever your yearly ITCs stay under $3,356. Yours are $2,000.
- GST/HST collected
- $13,000 13% embedded in revenue
- Quick @ 8.8%
- $9,944 revenue × remittance rate
- 1% credit
- − $300 on first $30,000
- Your ITCs
- $2,000 forfeited under Quick
Two eligibility gates the CRA enforces: your yearly taxable supplies (incl. GST/HST) must be ≤ $400,000, and your work can’t be on the excluded list — accountants, bookkeepers, lawyers, financial/tax consultants, and actuaries can’t use the Quick Method.
Estimate only, for a business that makes its supplies in the province where it’s based. Rates are the current CRA RC4058 remittance rates (see Sources below). This isn’t tax advice — confirm your situation, and your election deadline, with a Canadian accountant or the CRA.
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A worked example
Say you’re an Ontario freelancer providing services. You invoiced $100,000 plus 13% HST, so you collected $13,000 — $113,000 in the door. You spent lightly on taxable expenses, paying about $2,000 of GST/HST (your ITCs).
| Quick Method remittance | $113,000 × 8.8% | $9,944 |
| Less the 1% credit | 1% × first $30,000 | − $300 |
| Quick Method — you remit | $9,644 | |
| Regular Method: tax collected | 13% embedded in $113,000 | $13,000 |
| Less your ITCs | − $2,000 | |
| Regular Method — you remit | $11,000 |
The Quick Method has you remit $9,644 versus $11,000 — a $1,356 saving this year. The break-even sits at $3,356 of ITCs: below that, the Quick Method wins; above it, the Regular Method does. That’s why it tends to favour service businesses with light taxable spending, and why a reseller stocking taxable inventory often does better on the Regular Method.
Not sure you even need to charge GST/HST yet? Check the $30,000 registration rule, confirm the rate to charge by province, or read the full self-employed tax guide.
People also ask
What is the GST/HST Quick Method and how does it work?
The Quick Method is a simplified way to calculate the GST/HST you remit to the CRA. Instead of tracking the tax on every sale and every expense, you charge GST/HST as normal but remit a lower flat percentage of your total sales (including the tax). You keep the difference between what you collected and what you remit. The trade-off: you give up Input Tax Credits on most operating expenses (you can still claim ITCs on capital purchases like equipment). It usually wins for service businesses with low taxable expenses.
Who is not eligible for the GST/HST Quick Method?
Two gates. First, your annual worldwide taxable supplies (including the GST/HST) — yours plus any associated businesses — must be $400,000 or less over four consecutive fiscal quarters. Second, certain professions are excluded outright: accountants, bookkeepers, lawyers, financial consultants, tax consultants and tax-return preparers, and actuaries cannot use the Quick Method. Listed financial institutions, charities, and most public-sector bodies are also excluded.
What is the 1% credit on the first $30,000?
On top of the reduced remittance rate, the Quick Method gives you a 1% credit on the first $30,000 of your eligible supplies (including GST/HST) each fiscal year — worth up to $300. Your Quick Method election has to be in effect at the start of the fiscal year to claim the full amount. This calculator applies it automatically.
Is the Quick Method always better than the Regular Method?
No. The Quick Method wins when your Input Tax Credits are small relative to the tax you collect — typical for service providers with few taxable expenses. If you buy a lot of taxable goods, equipment or subcontractors, your ITCs can be worth more than the Quick Method spread, and the Regular Method remits less. The break-even in the calculator shows the exact ITC level where they tie: below it, Quick wins; above it, Regular wins.
Which remittance rate applies to me?
It depends on whether you mostly resell goods or provide services, and on your province’s GST/HST rate. For a business making its supplies where it’s based: service providers remit 3.6% in GST-only provinces, 8.8% in Ontario (13%), 9.4% in Nova Scotia (14%), and 10.0% in the 15% HST provinces. Goods resellers remit 1.8%, 4.4%, 4.7% and 5.0% respectively. If you sell across provincial lines a fuller RC4058 rate table applies — see the CRA source linked below.
Is this calculator official tax advice?
No. It applies the current CRA RC4058 Quick Method remittance rates, the 1% credit and the $400,000 eligibility cap to give a plain-language estimate for a business that makes its supplies in the province where it is based. It does not cover every situation — cross-province supplies, capital purchases, or partial years follow additional rules. Confirm your specifics, and your election deadline, with a Canadian accountant or the CRA.
Sources
Every rate and rule in this calculator is transcribed directly from the CRA (verified 30 July 2026):
- CRA Guide RC4058 — Quick Method of Accounting for GST/HST — remittance rate tables (goods resale and services), the 1% credit on the first $30,000, and the $400,000 eligibility cap and list of excluded businesses.
- Remittance rates used (business making supplies where it’s based): Services — 3.6% GST-only provinces, 8.8% ON (13%), 9.4% NS (14%), 10.0% NB/NL/PE (15%). Goods resale — 1.8%, 4.4%, 4.7%, 5.0% respectively.
- Provincial GST/HST rates cross-checked against our GST/HST rate-by-province tool (Nova Scotia 14% since 1 April 2025).
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