What's the difference between CPP1 and CPP2?

CPP1 is the original CPP contribution: 5.95% on earnings between the basic exemption ($3,500) and the Year's Maximum Pensionable Earnings (YMPE, $71,300 for 2025). CPP2 is the second enhancement that began in 2024: 4% on earnings between the YMPE ($71,300) and the Year's Additional Maximum Pensionable Earnings (YAMPE, $81,200 for 2025). Higher-earning workers pay both.

What are the 2025 maximums?

Maximum employee CPP1 contribution: $4,034.10 ((71,300 − 3,500) × 5.95%). Maximum employee CPP2 contribution: $396.00 ((81,200 − 71,300) × 4%). Combined max employee contribution: $4,430.10. Employers match these amounts.

How does this differ for self-employed?

Self-employed individuals pay both the employee and employer share — double the calculator's output. The doubled portion can be partially deducted on your return as a business expense.

Quebec residents contribute to the Quebec Pension Plan (QPP) instead of CPP. The QPP rate is similar (5.4% base + 1% enhancement = 6.4% on earnings to YMPE) but the calculation differs slightly. This calculator estimates federal CPP only — use the QPP calculator if you live in Quebec.

When do I stop contributing?

You can opt out of CPP contributions at age 65–70 if you're already collecting CPP retirement benefits. Below 65, contributions are mandatory. Above 70, contributions stop automatically.

CPP & CPP2 Contribution Calculator

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Free CPP contribution calculator. Compute your 2025 CPP1 deduction (5.95% on pensionable earnings between $3,500 and the YMPE of $71,300) and the new CPP2 enhancement (4% on earnings between the YMPE $71,300 and the YAMPE $81,200). See your annual employee contribution and the doubled self-employed equivalent. Quebec workers contribute to QPP instead — use the QPP calculator if you're in Quebec.

Gross annual income (CAD)

Self-employed (doubles contribution)

2025 · YMPE $71,300 · YAMPE $81,200 · Basic exemption $3,500

CPP1 5.95% · CPP2 4% · Quebec uses QPP (separate calculator)

Employee CPP / yr

$4,182.10

CPP1 (5.95%)

$4,034.10

CPP2 (4%)

$148.00

Employer match$4,182.10

Total funded$8,364.20

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

Frequently Asked Questions

References

CPP contribution rates, maximums and exemptions — Canada Revenue Agency

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Frequently Asked Questions

References and sources

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