As an employee, half of your Canada Pension Plan (CPP) contributions come off your pay and your employer pays the other half. When you're self-employed, you pay both halves yourself on your net business income when you file your tax return. It surprises a lot of first-year freelancers, so plan for it.
| Item | 2026 |
|---|---|
| Basic exemption (no CPP on the first) | $3,500 |
| Year's maximum pensionable earnings (first ceiling) | $74,600 |
| Self-employed rate, base + first additional (5.95% × 2) | 11.9% |
| Maximum self-employed CPP contribution | $8,460.90 |
| Second ceiling (CPP2) | $85,000 |
| Self-employed CPP2 rate on earnings between $74,600 and $85,000 (4% × 2) | 8% |
| Maximum self-employed CPP2 contribution | $832 |
| Net self-employment income | CPP | CPP2 | Total |
|---|---|---|---|
| $3,000 | $0 (under the $3,500 exemption) | $0 | $0 |
| $50,000 | ($50,000 − $3,500) × 11.9% = $5,533.50 | $0 | $5,533.50 |
| $80,000 | $8,460.90 (maximum) | ($80,000 − $74,600) × 8% = $432 | $8,892.90 |
"Net self-employment income" here means your business profit from Form T2125 after expenses, not your gross sales. That's one reason tracking every deductible expense matters: it lowers both your income tax and your CPP. See the T2125 categories guide.
If you also had a job where CPP was deducted, Schedule 8 accounts for what you already paid through your T4 slips, so your self-employed amount will be lower.
CPP on self-employment income is part of your income tax balance owing, so it's due April 30, even though self-employed individuals have until June 15 to file. If the CRA asks you to pay tax instalments, CPP is included in the amounts.
Generally, people aged 18 to 70 with self-employment earnings over the basic exemption. If you're 65 to 70 and already receive a CPP retirement pension, you can choose to stop contributing (Form CPT30). Contributions are prorated in the year you turn 18 or 70.
Set money aside from every invoice for income tax, CPP and (if registered) GST/HST, ideally in separate buckets. At the 2026 rates, CPP alone is about 11.9 cents of each dollar of profit between $3,500 and $74,600.
Free tool: estimate your 2026 CPP and CPP2 with the self-employed CPP calculator.
Want this in a spreadsheet? The Canada Self-Employed Income, Expense & GST/HST Tracker ($19 CAD, Excel/Google Sheets) logs income, expenses by T2125 line, and GST/HST collected and paid, with monthly totals.
11.9% of net self-employment earnings between $3,500 and $74,600 (maximum $8,460.90), plus 8% CPP2 on earnings between $74,600 and $85,000 (maximum $832). Self-employed people pay both the employee and employer shares.
You calculate it on Schedule 8 when you file your income tax return, and it's part of the balance owing, due April 30 even though self-employed people have until June 15 to file. If you pay instalments, CPP is included in those.
Partly. Schedule 8 splits them: the 'employer' half and the enhanced parts are claimed as a deduction on line 22200, and the base part of the 'employee' half is claimed as a non-refundable tax credit on line 31000.
Quebec residents contribute to the Quebec Pension Plan (QPP) instead, with different rates. This page covers the CPP.