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CPP for Self-Employed

2025
Earnings Details
$

Net business income after expenses

All provinces except Quebec contribute to CPP

Your CPP Contributions

Total CPP (Both Portions)

$8,892.90

Deductible Portion (Employer Half)

$4,446.45

% of Earnings

11.1%

Self-Employed vs Employee

If Employed (Your Share)

$4,446.45

CPP @ 5.95%

Self-Employed (Both)

$8,892.90

CPP @ 11.90%

Additional cost of self-employment: $4,446.45

This is the employer portion that you pay yourself. Half is deductible from taxable income.

Contribution Details
Net Self-Employment Earnings$80,000.00
Maximum Pensionable Earnings$74,600.00
Basic Exemption$3,500.00
CPP (employee portion)$4,230.45
CPP (employer portion)$4,230.45
Total CPP (first ceiling)$8,460.90
CPP2 Second Ceiling ($74,600.00 to $85,000.00)$432.00
Total Contributions$8,892.90
Deductible from Income (employer half)$4,446.45
Understanding CPP/QPP for Self-Employed

How Canada Pension Plan works for self-employed Canadians

Employed workers split CPP contributions 50/50 with their employer. Each pays 5.95% on pensionable earnings. Self-employed individuals have no employer, so they must pay both portions — a combined rate of 11.9%. However, you can deduct the employer-equivalent half (5.95%) from your taxable income, partially offsetting the extra cost.
When calculating your taxable income on the T1 return, you claim a deduction (line 22200) for the enhanced CPP contributions — essentially the employer-equivalent portion. This reduces your taxable income. The employee-equivalent portion is claimed as a non-refundable tax credit (line 30800) at the lowest federal rate (15%).
The Quebec Pension Plan (QPP) is Quebec's equivalent of CPP, managed by Retraite Quebec. The QPP rate is slightly higher (6.4% employee, 12.8% self-employed for 2025) and has some different benefit rules. Quebec residents contribute to QPP instead of CPP. Both plans provide similar retirement, disability, and survivor benefits.
If you have zero or low self-employment earnings, you cannot voluntarily contribute additional amounts to CPP. However, you can make voluntary contributions to top up years with low earnings through the CPP Post-Retirement Benefit if you are over 60 and still working. There is no voluntary "extra" contribution mechanism for most workers.
Starting in 2024, CPP2 applies an additional 4% contribution rate on earnings between the first ceiling ($71,300 in 2025) and the second ceiling ($81,200 in 2025). For self-employed, this is 8% (both portions) on this earnings range. The maximum additional CPP2 contribution for self-employed is $792 (2025). This increases future pension benefits.
Your CPP/QPP retirement pension is based on your contributions over your working life. Maximum pension at age 65 is approximately $1,364/month (2025). Self-employed individuals who pay both portions accumulate pension credits at the same rate as employees. You can take CPP as early as age 60 (reduced) or defer to age 70 (increased by 42%).
No. If your net self-employment earnings exceed $3,500, CPP contributions are mandatory. Unlike EI (which is voluntary for the self-employed), there is no option to opt out of CPP/QPP. The only exception is if you are over 65 and already receiving CPP pension — you can elect to stop contributing.

CRA-Aligned: Rates and thresholds are based on 2025 CRA/Retraite Quebec figures. CPP employee rate: 5.95%, self-employed: 11.9%. CPP2 rate: 4% (employee), 8% (self-employed). Consult a tax professional for personalised advice.

More Information

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

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