How much CPP do self-employed Canadians pay?

The Canada Pension Plan (CPP) is Canada's mandatory public pension system. As a self-employed person, you pay both the employer and employee portions of CPP contributions — unlike employees who split the cost with their employer. For 2024, the combined self-employed CPP contribution rate is 10.9% of net self-employment income. The key thresholds for 2024 are: - **Exemption amount**: C$3,500 (you don't pay CPP on the first C$3,500) - **Maximum pensionable earnings**: C$68,500 - **Maximum CPP contribution**: approximately C$7,136 (2024) So the maximum net income subject to CPP in 2024 is C$65,000 (C$68,500 − C$3,500), and the maximum contribution is roughly C$7,085. The good news is that half of your CPP contributions (the employer portion) is deductible as a business expense on your T1 Return, and the other half qualifies for a non-refundable tax credit. CPP2 (enhanced CPP) also applies for 2024: an additional 4% on income between C$68,500 and C$73,200, capped at C$188.

• Self-employed pay both employer + employee CPP: 10.9% combined (2024)
• Exemption: first C$3,500 of net income is exempt
• Maximum pensionable earnings: C$68,500 (2024)
• Maximum contribution: ~C$7,136 (2024)
• Half is deductible; other half is a tax credit
• CPP2: extra 4% on C$68,500–C$73,200 capped at C$188