Guide · Canada · Updated June 1, 2026 · Reviewed by the NorthOS team

Self-Employed CPP in Canada: What You Actually Owe (2026)

When you work for yourself in Canada, there is no employer to split your Canada Pension Plan contribution. You pay both halves. For a lot of freelancers and gig workers, the CPP bill is a bigger surprise than income tax. Here is exactly what you owe in 2026 and why.

Why the self-employed pay double

When you have a regular job, you pay 5.95% of your pay into CPP and your employer pays the same 5.95% for you. You only ever see your own half come off the paycheque. When you are self-employed, you are both the worker and the employer, so you pay both halves yourself: 11.9%.

You pay it on your net business income, meaning what is left after your deductible expenses, not your gross revenue. And you only pay on the slice of income inside the contribution band.

What you pay in 2026

There are two tiers for 2026:

Income band (net)Self-employed rate
First $3,500 (basic exemption)0%
$3,500 to $74,600 (base CPP)11.9%
$74,600 to $85,000 (CPP2)8%
Above $85,0000%

$74,600 is the year’s maximum pensionable earnings (YMPE) and $85,000 is the year’s additional maximum pensionable earnings (YAMPE) for 2026, per the CRA.

Worked examples

$50,000 of net income:you contribute on $50,000 minus the $3,500 exemption, so ($50,000 − $3,500) × 11.9% = $5,533.50. You are below $74,600, so there is no CPP2.

$90,000 of net income:base CPP maxes out at ($74,600 − $3,500) × 11.9% = $8,460.90, then CPP2 adds ($85,000 − $74,600) × 8% = $832, for a total of $9,292.90.

The half you get back

CPP is not all cost. You deduct half of your total contribution on line 22200 of your return, which reduces the income you pay income tax on. The other half counts as a non-refundable tax credit. So while the headline rate is 11.9%, the after-tax sting is smaller once those offsets are applied.

Quebec: QPP instead of CPP

If you live in Quebec, you contribute to the Quebec Pension Plan rather than CPP. The self-employed QPP base rate for 2026 is 12.6% on the same $3,500 to $74,600 band, a little higher than the rest of Canada. The contribution ceilings are the same. For the precise QPP and QPP2 figures, check Revenu Quebec.

This guide is general information, not tax advice. Rates and ceilings are 2026 CRA figures and change each year. For GST/HST, T2125, and how to actually file, see NorthOS, our Canadian bookkeeping app for the self-employed.

Frequently asked questions

Do I have to pay CPP on a small side hustle?
Yes, once your net self-employment income for the year passes the $3,500 basic exemption. Below that, you owe no CPP on the self-employment income. There is no separate exemption for each gig: all of your self-employment income is combined into one figure first.
Is CPP the same as income tax?
No. CPP is a separate contribution that funds your future retirement pension. It is calculated on its own and comes on top of federal and provincial income tax. A common surprise for new freelancers is that the CPP bill alone can be 11.9% of net income.
What is CPP2?
CPP2 is a second tier of contributions phased in starting in 2024. For 2026 it applies to net income between the year's maximum pensionable earnings ($74,600) and the year's additional maximum pensionable earnings ($85,000). Self-employed people pay 8% on income in that band.
How is Quebec different?
Quebec residents contribute to the Quebec Pension Plan (QPP) instead of CPP. The self-employed QPP base rate for 2026 is 12.6%, slightly higher than the CPP rate, on the same $3,500 to $74,600 band. Check Revenu Quebec for the current QPP and QPP2 figures.
Can I deduct any of my CPP contributions?
Yes. You deduct half of your total CPP (or QPP) contribution on line 22200 of your T1 return, which lowers the income you pay income tax on. The other half is a non-refundable tax credit. The calculator shows the deductible half for you.

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