In one embodiment, a method for bypassing transform and quantization steps in a video compression is provided. The method determines one or more threshold values that are computed for a bypass of the transform and quantization steps. A sum of absolute transformed differences (SATD) value from a motion estimation of a signal being compressed using H.26x is received. The SATD value is compared to at least one of the one or more threshold values. It is then determined if the transform and quantization can be bypassed based on the comparison. For example, if the SATD value is less than the at least one of the one or more threshold values, then it may be determined that the coefficients of the transform are expected to be quantized to zero. Accordingly, the transform and quantization steps may be bypassed.