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Canada Pension Plan (CPP) Contribution Rates

See Quebec Pension Plan (QPP) Rates below.

Year	Maximum Pensionable Earnings (YMPE)	Rate⁽¹⁾	Employee/ Employer Maximum	Self- Employed Maximum
2023	$66,600	5.95%	$3,754.45	$7,508.90
2022	64,900	5.70%	3,499.80	6,999.60
2021	61,600	5.45%	3,166.45	6,332.90
2020	58,700	5.25%	2,898.00	5,796.00
2019	57,400	5.10%	2,748.90	5,497.80
2018	55,900	4.95%	2,593.80	5,187.60
2017	55,300	4.95%	2,564.10	5,128.20
2016	54,900	4.95%	2,544.30	5,088.60
2015	53,600	4.95%	2,479.95	4,959.90
2014	52,500	4.95%	2,425.50	4,851.00
2013	51,100	4.95%	2,356.20	4,712.40
2012	50,100	4.95%	2,306.70	4,613.40
2011	48,300	4.95%	2,217.60	4,435.20
2010	47,200	4.95%	2,163.15	4,326.30
2009	46,300	4.95%	2,118.60	4,237.20
2008	44,900	4.95%	2,049.30	4,098.60
2007	43,700	4.95%	1,989.90	3,979.80

Note:

	The basic annual exemption is $3,500.
	The employee contribution amount is calculated based on the pensionable earnings less the $3,500 exemption.
	The employer contribution is equal to the employee contribution.
	A self employed person pays the employee + employer amounts, so pays 2x the employee amount.

The Canadian Federation of Independent Business asked the federal government to hold the CPP premiums at current levels in 2021, in light of the pandemic, instead of implementing the planned increase of up to 9.3%, depending on earnings level.

(1)CPP Contributions on the Tax Return

The 2023 rate of 5.95% (2022 5.70%) is broken down into 2 parts on the tax return, with each part treated differently for the employee:

	4.95% + 1.00% for 2023,
	4.95% + 0.75% for 2022
	4.95% + 0.50% for 2021

a. 4.95%: The employee maximum for the non-refundable tax credit for CPP premiums:

- 2023 is ($66,600 - $3,500) x 4.95% = $3,123.45.

- 2022 is ($64,900 - $3,500) x 4.95% = $3,039.30.

- 2021 is ($61,600 - $3,500) x 4.95% = $2,875.95.

- 2020 is ($58,700 - $3,500) x 4.95% = $2,732.40.

b. 1.00% (2022 0.75%, 2021 0.50%, 2020 0.30%): The "additional contribution" for the Enhanced Canada Pension Plan, which is allowed as a deduction from income, not as a tax credit:

- of the 2023 maximum, $3,754.45 - $3,123.45 = $631.00 (also = ($66,600 - $3,500) x 1.00%)

- of the 2022 maximum, $3,499.80 - $3,039.30 = $460.50 (also = ($64,900 - $3,500) x 0.75%)

- of the 2021 maximum, $3,166.45 - $2,875.95 = $290.50 (also = ($61,600 - $3,500) x 0.50%)

- of the 2020 maximum, $2,898.00 - $2,732.40 = $165.60 (also = ($58,700 - $3,500) x 0.30%)

The employer portion of CPP contributions is tax-deductible for the employer.

For a self-employed individual, half of their contributions are considered their employee portion, and the other half is their employer portion. Their employer portion is tax-deductible, as is the "additional contribution" part of their employee contribution.

Enhanced Canada Pension Plan

Starting in 2019, there is an additional contribution of 0.15% x the YMPE, which is included in the 5.10% above. This is called the "first additional contribution" for the Enhanced CPP. On the tax return, the additional contribution will be allowed as a deduction. Employers will also pay the 0.15% additional contribution. Self-employed will pay both the employee and employer additional contributions, and will be able to deduct 100% of the additional contribution on their tax return. The first additional contribution will increase each year, so that in 2023 the total rate will be 5.95%, as follows:

2019 0.15% +4.95% = 5.10% total rate

2020 0.30% +4.95% = 5.25%

2021 0.50% +4.95% = 5.45%

2022 0.75% +4.95% = 5.70%

2023 1.00% +4.95% = 5.95%

2024 and Later Year's Additional Maximum Pensionable Earnings (YAMPE)

In 2024 there will be a Year's Additional Maximum Pensionable Earnings (YAMPE) calculated, which will be 107% x the YMPE. In 2025 the YAMPE will be 114% x the YMPE.

The contribution amount (2nd additional contribution) will be 4% of the difference between the YAMPE and the YMPE. Self-employed will pay 8%.

The 2nd additional contribution will also be deductible from income.

Contributors who make more than the YMPE are not required or permitted to make additional CPP contributions.

TaxTips.ca Tax Calculators and CPP + Enhanced CPP Contributions

In the Detailed Canadian Income Tax Calculator for 2019 and later years, the total CPP + Enhanced CPP for employment income is shown near the bottom of the calculator, in the calculation of Total taxes, clawbacks, CPP/EI premiums. Since the CPP on self-employment income is calculated on the tax return and remitted in the same manner as income tax, it is shown separately and included in the total payable by the taxpayer.

TaxTips.ca Resources

Payroll Tax Calculators for different methods of checking payroll deductions, and an online payroll calculator which employers can use for calculating payroll deductions.

Self-employed and filing a tax return more than 4 years late?

Canada Pension Plan (CPP) Retirement Benefit Rules

Government of Canada Information

Canada Pension Plan Enhancement

Canada's Finance Ministers Agree to Strengthen Canada Pension Plan - June 20, 2016.

T4032 Payroll Deduction Tables - for calculating payroll deductions

CPP contribution rates, maximums and exemptions for rates from current and earlier years.

Quebec Pension Plan (QPP) Contribution Rates

The QPP factors are the same as the CPP factors up to and including 2011. However, Revenue Quebec announced changes to the QPP contribution rate. The employee and employer rates each increased by 0.075% per year starting in 2012, until each of these rates reached 5.4% in 2017. The self-employed rate is 2x the employee rate.

Year	Maximum Pensionable Earnings (YMPE)	Rate	Employee/ Employer Maximum	Self- Employed Maximum
2023	$66,600	6.40%	$4,038.40	$8,076.80
2022	64,900	6.15%	3,776.10	7,552.20
2021	61,600	5.90%	3,427.90	6,855.80
2020	58,700	5.70%	3,146.40	6,292.80
2019	57,400	5.55%	2,991.45	5,982.90
2018	55,900	5.40%	2,829.60	5,659.20
2017	55,300	5.40%	2,797.20	5,594.40
2016	54,900	5.325%	2,737.05	5,474.10
2015	53,600	5.250%	2,630.25	5,260.50
2014	52,500	5.175%	2,535.75	5,071.50
2013	51,100	5.100%	2,427.60	4,855.20
2012	50,100	5.025%	2,341.65	4,683.30
2011	48,300	4.95%	2,217.60	4,435.20
2010	47,200	4.95%	2,163.15	4,326.30
2009	46,300	4.95%	2,118.60	4,237.20
2008	44,900	4.95%	2,049.30	4,098.60
2007	43,700	4.95%	1,989.90	3,979.80

Note: The basic annual exemption is $3,500.

Enhanced Quebec Pension Plan

Quebec will enhance the QPP in the same manner to which the CPP is being enhanced. The resulting rates will be:

2019 0.15% +5.40% = 5.55% total rate

2020 0.30% +5.40% = 5.70%

2021 0.50% +5.40% = 5.90%

2022 0.75% +5.40% = 6.15%

2023 1.00% +5.40% = 6.40%

As with the CPP, the additional contribution to the QPP is a deduction on the tax return, while the 5.40% contribution will be allowed as a non-refundable tax credit.

The QPP will use the same YMPE and YAMPE as the CPP, and it will be increased in the same manner, using the same 2nd additional contribution rate, as the CPP.

Quebec Pension Plan information

Enhancement of the Quebec Pension Plan

Source deductions and contributions - for calculating payroll deductions

TP-1015.G-V - Guide for Employers: Source Deductions and Contributions

Maximum pensionable salary or wages and QPP contribution rate

Quebec Pension Plan - information about retirement pension, disability pension, and survivors' benefits

Revised: November 01, 2022