Quick Method vs regular method: which HST remittance is lower in Ontario?
If you are a sole proprietor or freelancer in Ontario charging 13% HST, CRA gives you two ways to work out what you send in: the regular method and the Quick Method. Here is how each one works, a worked example with real numbers, and the expense level where they come out equal.
Last reviewed October 2026 · Educational information, not tax advice.
How the regular method works
Under the regular method you remit the HST you charged your clients minus the HST you paid on business purchases. The HST you paid comes back to you as input tax credits (ITCs). If you charge 13% on $60,000 of services you collect $7,800; if you paid $1,000 of HST on software, a laptop, phone service and supplies, you remit $6,800. You need receipts for every ITC you claim, and CRA expects you to keep those records for six years.
How the Quick Method works
Under the Quick Method you still charge your clients 13% HST, but you remit a fixed percentage of your HST-included sales instead of tracking the HST on most purchases. For a service business with a permanent establishment in Ontario, CRA RC4058 sets that remittance rate at 8.8% of tax-included supplies. You also get a credit of 1% on the first $30,000 of eligible tax-included supplies each fiscal year (up to $300) when the election is in effect at the start of that year. You generally cannot claim ITCs on everyday expenses, but you can still claim them on capital purchases such as computers and vehicles, and on real property.
Worked example: $60,000 of consulting income
Take an Ontario graphic designer with $60,000.00 of 13%-taxable sales in a fiscal year:
| Line | Amount |
|---|---|
| Sales before HST | $60,000.00 |
| HST charged at 13% | $7,800.00 |
| Tax-included sales | $67,800.00 |
| Quick Method: 8.8% × tax-included sales | $5,966.40 |
| Less 1% credit on the first $30,000 | −$300.00 |
| Quick Method remittance | $5,666.40 |
| Regular method with $1,000 of ITCs | $6,800.00 |
| Regular method with $3,000 of ITCs | $4,800.00 |
The Quick Method keeps $2,133.60 of the HST you collected. That is the break-even ITC amount: if the HST you paid on purchases that are not capital assets is below $2,133.60, the Quick Method leaves you with more money; above it, the regular method wins. At 13% HST, $2,133.60 of ITCs means roughly $16,412.31 of taxable expenses before HST, about 27.4% of sales.
Does the Quick Method still win if your numbers change?
The worked example uses one set of numbers. This grid repeats the same math across different sales levels and expense levels. Each cell shows how much less GST/HST you would remit in a year under the Quick Method (+) or how much more (−), compared with the regular method.
| Sales before HST | 0% | 10% | 20% | 25% | 30% | 40% | Break-even |
|---|---|---|---|---|---|---|---|
| $30,000 | +$1,217 | +$827 | +$437 | +$242 | +$47 | −$343 | 31.2% |
| $50,000 | +$1,828 | +$1,178 | +$528 | +$203 | −$122 | −$772 | 28.1% |
| $75,000 | +$2,592 | +$1,617 | +$642 | +$155 | −$333 | −$1,308 | 26.6% |
| $100,000 | +$3,356 | +$2,056 | +$756 | +$106 | −$544 | −$1,844 | 25.8% |
| $150,000 | +$4,884 | +$2,934 | +$984 | +$9 | −$966 | −$2,916 | 25.0% |
| $200,000 | +$6,412 | +$3,812 | +$1,212 | −$88 | −$1,388 | −$3,988 | 24.7% |
Assumptions: an Ontario service business with a permanent establishment in Ontario, 13% HST on all sales, the 8.8% Quick Method rate and the 1% credit on the first $30,000 of tax-included sales from CRA RC4058, a full fiscal year, and no capital purchases (you can claim ITCs on those under either method). Expenses are before HST. Educational estimate, not tax advice.
The plain-English rule: if the business expenses you pay HST on add up to less than about a quarter of your sales, the Quick Method usually leaves you with more money. The exact break-even falls from 31.2% of sales at $30,000 to 24.7% at $200,000, because the $300 credit matters less as sales grow. Above the break-even, the regular method remits less.
To test your own figures, enter them in the free Ontario HST calculator. It shows your exact break-even input tax credits.
Side-by-side comparison
| Feature | Regular method | Quick Method |
|---|---|---|
| What you remit | HST collected − ITCs | Fixed rate × tax-included sales (8.8% for Ontario services) |
| ITCs on day-to-day expenses | Yes, with receipts | No |
| ITCs on capital assets (computers, vehicles) and real property | Yes | Yes |
| Extra credit | None | 1% of the first $30,000 (max $300 a year) |
| Who can use it | Every registrant | Eligible businesses with up to $400,000 of worldwide taxable supplies; some professions are excluded |
| Bad debts | Bad-debt adjustment available | No bad-debt adjustment |
| Switching | Elect the Quick Method with Form GST74 or online | Stays in place at least one year before you can revoke |
Who tends to come out ahead with the Quick Method?
Service businesses with low taxable expenses: writers, designers, consultants, tutors, trades people who bill mostly labour, and many rideshare drivers. Businesses with large HST-bearing costs (subcontractors who charge HST, inventory, equipment leases, big software bills) usually do better on the regular method. Bookkeepers, accountants, lawyers, tax preparers and financial consultants cannot use the Quick Method at all, whatever the numbers say.
Remember the Quick Method also saves time: you do not have to separate the HST on every receipt for regular expenses. That has value even when the dollar difference is small. Keep your receipts anyway, because income tax rules still need them.
Frequently asked questions
Is the Quick Method always cheaper than the regular method?
No. It is cheaper only when the HST you paid on day-to-day business purchases is below the break-even amount. In the $60,000 Ontario services example that break-even is $2,133.60 of ITCs. Above that, the regular method leaves you with more.
Do I still charge 13% HST to clients under the Quick Method?
Yes. The Quick Method changes how you calculate the amount you remit, not the HST you charge. Your invoices still show 13% HST in Ontario.
Can I claim HST on a new laptop under the Quick Method?
Generally yes. RC4058 lets Quick Method users claim ITCs on capital assets such as computers and vehicles, and on real property, as well as some other listed items. Day-to-day expenses such as supplies, phone and software subscriptions are not claimed separately.
Does the Quick Method still save money as my sales grow?
Only while your HST-bearing expenses stay low. For an Ontario service business the break-even is about 31% of sales at $30,000 and about 25% at $200,000. If the expenses you pay HST on are below that share of sales, the Quick Method usually remits less; above it, the regular method does. The grid on this page shows the dollar difference.
Sources
- CRA RC4058, Quick Method of Accounting for GST/HST
- Streamlined Accounting (GST/HST) Regulations (SOR/91-51)
Rates and thresholds are taken from the CRA pages above. CRA can change them, so check the source before you file.