HST Small Supplier Threshold Canada 2026: When You Must Register ($30K Rule Explained)
2026 Key Facts — HST & GST Registration
- Small supplier threshold: $30,000 in taxable supplies over any four consecutive calendar quarters
- Employment income does NOT count toward the threshold
- Ontario HST rate: 13% (5% federal GST + 8% provincial)
- Mandatory registration deadline: 29 days after you exceed $30,000 in a single calendar quarter
- Voluntary registration available at any time — recommended once taxable supplies exceed $20,000/year
- Quebec QST threshold: $30,000 (same basis, separate Revenu Québec registration required)
If you run a business in Canada, the GST/HST small supplier threshold is one of the most important tax compliance milestones you will cross. Miss it, and CRA can assess back-tax, interest, and penalties from the day you should have registered.
What is the GST/HST small supplier threshold in Canada for 2026?
The threshold is $30,000 in total taxable supplies over any single calendar quarter, or over any four consecutive calendar quarters. The $30,000 threshold is not indexed to inflation.
Does employment income count toward the $30,000 GST/HST threshold?
No. Employment income is not a taxable supply. If you earn $80,000 as an employee and $25,000 from freelance consulting, only the $25,000 consulting revenue applies to the threshold test.
How is the four consecutive calendar quarters test calculated?
CRA adds your taxable supplies from the most recent four calendar quarters. If the total exceeds $30,000, you have exceeded the threshold and have 29 days to register. During those 29 days you are not required to charge GST/HST, but once the 29 days pass — or once you exceed $30,000 in a single quarter — you must begin collecting immediately.
What happens if I exceed $30,000 in a single calendar quarter?
Your small supplier status ends immediately at the moment of the sale that pushed you over. You must register and begin charging GST/HST on the very next taxable supply. There is no 29-day grace period for the single-quarter test.
What types of income count toward the GST/HST threshold?
Only taxable supplies count — standard-rated sales (5% GST / 13% HST in Ontario) and zero-rated supplies. The following do NOT count: exempt supplies (residential rent, most health care, educational services, financial services); employment income; investment income; sale of a capital property.
Does the Revenu Québec QST threshold work the same way?
Yes — Quebec’s QST uses the same $30,000 threshold, but registration is with Revenu Québec, not CRA, and the QST rate is 9.975% on top of GST.
Can I register for GST/HST voluntarily before reaching $30,000?
Yes. Voluntary registration lets you claim Input Tax Credits (ITCs) — refunds of GST/HST paid on business expenses. If you spend heavily on equipment, software, or professional services, ITCs can exceed your collected tax in early years, resulting in a net refund.
What are the penalties for not registering on time?
CRA can assess failure-to-register penalties and charge interest on all GST/HST that should have been collected. CRA also expects you to remit as if you had charged GST/HST on all sales since the registration date — meaning the tax comes out of your pocket retroactively.
Which provinces use HST vs. GST + PST?
HST applies in: Ontario (13%), Nova Scotia (15%), New Brunswick (15%), Newfoundland and Labrador (15%), and PEI (15%). All other provinces apply the federal 5% GST separately from their own PST.
Reviewed by: Bader A. Chowdry, CPA CA LPA — Insight Accounting CPA Professional Corporation, Mississauga, Ontario. Last reviewed: .
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Insight Accounting CPA has helped hundreds of Ontario small businesses navigate GST/HST registration, voluntary enrolment, and Input Tax Credit claims. LPA-licensed. Mississauga-based.
