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Canada: Personal Taxation

Social Security Taxes

This page was last updated on 6 June 2019.

There are two pension plan systems in operation in Canada: the Quebec pension plan (QPP) for Quebec only and the Canada pension plan (CPP) for everywhere else. Employees pay CPP contributions at a rate of 5.1% and QPP contributions at 5.55% of their salary. Minimum and maximum pensionable earnings apply – for 2019, these are C$3,500 (CPP) and C$57,400 (QPP).  This contribution is matched by the employer. Self-employed individuals are required to pay both employee and employer contributions, effectively paying 10.2% (or 11.1%) of income within the minimum and maximum earnings thresholds.

Employees also pay 1.62% (1.25% in Quebec) employment insurance on salary of up to C$53,100 (for 2019). Employers contribute a multiple of 1.4 times the employee’s contribution. The employer’s contribution can be reduced where it provides a short-term disability plan for its employees. From January 2010, self-employed individuals can make voluntary employment insurance contributions.

Some provinces and territories also require healthcare contributions, at varying rates.

 

 

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