CPP Maximum 2025 | CPP Rates
The CPP rate, effective January 1, 2025, is set at 5.95% of pensionable earnings. The maximum CPP contribution for the 2025 taxation year is $4,200.
Basic Exemption Amount
The basic exemption amount for 2025 is $3,600. Individuals with earnings below this level are not required to contribute to the CPP.
Self-Employed Contributions
The CPP contribution rate for self-employed individuals is 11.90% as it covers both the employee and employer portions. The maximum self-employed contribution for 2025 is $8,400. Previous years featured lower maximum contribution amounts.
CPP Contribution Schedule
At the start of 2025, contributions are made at the lower rate until the maximum contribution limit is reached. After this limit is met, the higher rate applies for the rest of the year. With each new year, contributions begin again at the lower rate until the maximum is reached.
Effect on Net Pay
Many employees reach their maximum CPP contribution level during the year. Once the maximum is reached, CPP deductions stop, resulting in an increase in net pay. This cycle resets with the start of the new year.
For more details, please visit the Canada Revenue Agency.