Tax and compliance

How much CPP do I pay if I am self-employed?

Both halves, which is 11.9% rather than 5.95%. On a good year that is a five-figure line on the return that nobody withheld along the way.

The sixty-second answer

An employee pays 5.95% of contributory earnings to CPP and their employer pays a matching 5.95%. A self-employed person is both, so the rate is 11.9%. For 2026 the ceiling is $74,600 of pensionable earnings, the basic exemption is $3,500, and maximum contributory earnings are therefore $71,100. The maximum employee contribution is $4,230.45 and the maximum self-employed contribution is $8,460.90. It is due with the rest of your balance on April 30.

The structural point

CPP is funded from two equal contributions. An employee has 5.95% withheld and their employer remits a matching 5.95% [1]. The employee sees one of those halves on a pay stub and often never thinks about the other.

Self-employment collapses the two roles into one person. There is no separate employer to pay the matching share, so the self-employed person pays both, at a combined 11.9% [1].

This is not a penalty on self-employment. The same total goes into the plan either way, and it buys the same entitlement. What changes is who writes the cheque and when they find out.

The 2026 numbers

Four figures define the calculation, and they move most years [1].

Maximum annual pensionable earnings: $74,600. Earnings above this do not attract a contribution under the first ceiling.

Basic exemption: $3,500. The first $3,500 is not contributory.

Maximum contributory earnings: $71,100. The ceiling less the exemption, and the figure the rate is applied to.

Rate: 5.95% each side, so 11.9% self-employed. Which gives a maximum employee contribution of $4,230.45 and a maximum self-employed contribution of $8,460.90 [1].

For comparison, the 2025 figures were a ceiling of $71,300, the same $3,500 exemption, contributory earnings of $67,800, and a maximum self-employed contribution of $8,068.20 [1]. Roughly $393 more in 2026 than in 2025 at the top end.

The exemption is shrinking without changing

A detail worth noticing. The basic exemption has been $3,500 since 1996 [1]. It is not indexed.

The ceiling, meanwhile, rises most years. The consequence is that the exemption protects a steadily smaller proportion of earnings over time. In 1996 it was a meaningful share of the ceiling; against a $74,600 ceiling it is under five percent.

For a low-earning sole proprietor this matters more than for anyone else, because the exemption is the whole of the relief available at that end of the scale.

CPP2, briefly

From January 1, 2024 there is a second additional CPP contribution on earnings above the first ceiling, up to a second and higher ceiling [1]. The CRA documents it separately and it is not included in the main rates table.

The practical point for a self-employed person is that the first ceiling is no longer the end of the calculation. Earnings above it were previously outside CPP entirely; a band above it is now contributory. Anyone whose net business income comfortably exceeds the first ceiling should treat $8,460.90 as the floor of their CPP exposure rather than the cap.

Why the bill is a surprise

An employee's CPP is withheld in small amounts across twenty-six pay periods and appears on a return only as a reconciliation. The money is gone before it is noticed.

A self-employed person's CPP is calculated once, on net business income from the T2125 [2], and appears on the return as a single number due in full on April 30 [3].

That combination - large, annual, and nobody withheld it - is why it lands badly. An owner who has mentally set aside money for income tax has frequently set aside nothing for this, and at maximum it is another $8,460.90 on top.

There is a second-order problem hiding in it. The self-employed filing deadline is June 15, but the payment deadline is April 30. So the CPP amount is due six weeks before the return that calculates it is due. Anyone estimating their April payment from income tax alone will be short by the CPP figure.

It is driven by the T2125

CPP for the self-employed is computed on net business income, which is the bottom of Form T2125 [2]. That makes the contribution a direct function of how completely expenses have been captured.

The relationship is worth stating plainly, because it changes the value of good record-keeping. A deductible expense that never made it onto the T2125 overstates net income. Overstated net income raises income tax and raises the CPP contribution alongside it, at 11.9% up to the ceiling.

So a missed receipt costs more for a self-employed person than the marginal income tax rate suggests. Below the ceiling it costs the tax and the CPP.

That is the case for capturing expenses as they happen rather than reconstructing them in May. MapleTax computes the T2125 from receipts already processed and categorised in MapleExpense, so what reaches the CPP calculation is the year's actual deductible expenses rather than the subset somebody could still find. And because the figures exist before April, the estimate that has to be paid on the balance-due day can include the CPP amount instead of omitting it.

Planning for it

Two habits make this manageable, and neither is sophisticated.

The first is setting money aside through the year at a rate that includes CPP, not just income tax. At 11.9% up to the ceiling, that is a material addition to whatever percentage you are already reserving.

The second is knowing your net income before April rather than in June. Everything about the balance-due day assumes you can estimate the year accurately six weeks before you finish calculating it, and that is a records question rather than a tax question.

Frequently asked questions

What is the CPP rate for a self-employed person?

Twice the employee rate. The employee and employer rate is each 5.95%, so a self-employed person pays 11.9% of contributory earnings, because they are both the employee and the employer.

What is the maximum CPP a self-employed person pays in 2026?

$8,460.90. That is double the maximum employee contribution of $4,230.45, and it is reached at the maximum pensionable earnings figure of $74,600.

What is the basic exemption?

$3,500, and it has been $3,500 since 1996. Because it is a flat amount that is not indexed, the practical effect is that it shields a steadily smaller share of earnings each year as the ceiling rises.

What are contributory earnings?

The amount contributions are actually computed on: pensionable earnings up to the annual ceiling, less the basic exemption. For 2026 that is $74,600 less $3,500, giving maximum contributory earnings of $71,100.

What is CPP2?

A second additional CPP contribution that applies from January 1, 2024 on earnings above the first ceiling up to a second, higher ceiling. It is separate from the figures in the main rates table and is documented by the CRA on its own page.

When do I have to pay my self-employed CPP?

With the balance on your return, by the balance-due day. For an individual that is April 30 in the following taxation year under paragraph (c) of the subsection 248(1) definition, which is the same date as the rest of your balance and earlier than the June 15 filing date a self-employed person gets.

Sources and evidence

Every link below was fetched and read on September 15, 2026. Where a source did not support a claim, the claim was cut rather than softened.

  1. Canada Revenue Agency - CPP contribution rates, maximums and exemptions For 2026, gives maximum annual pensionable earnings of $74,600, a basic exemption of $3,500, maximum contributory earnings of $71,100, an employee and employer rate of 5.95%, a maximum employee contribution of $4,230.45 and a maximum self-employed contribution of $8,460.90. For 2025 the corresponding figures are $71,300, $3,500, $67,800, 5.95%, $4,034.10 and $8,068.20. The basic exemption has been $3,500 since 1996. The page notes that a second additional CPP contribution (CPP2) applies from January 1, 2024 on earnings above the first ceiling up to a second ceiling, and is covered separately. Page last updated 2025-10-31.
  2. Canada Revenue Agency - Report business income and expenses States that the CRA encourages the use of Form T2125, Statement of Business or Professional Activities, to report business or professional income and expenses. Net income from that form is the figure on which self-employed CPP contributions are computed.
  3. Income Tax Act, section 248 (Definitions - "balance-due day") Paragraph (c) of the definition sets an individual's balance-due day at April 30 in the following taxation year, which is the date by which any amount owing on the return, including self-employed CPP contributions, must be paid.

CPP is calculated on net business income, so the accuracy of the T2125 drives the size of the bill. MapleTax computes it from expenses already captured in MapleExpense rather than from a year-end estimate.

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