Your net business income — revenue minus expenses (line 15000-ish, before tax). CPP is charged on your profit, not your revenue.
As a self-employed person you pay both halves of CPP — the employee half and the employer half — because you're both. That's why the rate is 11.9%, not 5.95%.
Total CPP owed
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Enter your net income to see your total CPP, split into base CPP and CPP2.
The tax treatment split
Employer half (50%) — deductible
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Comes off your net income, lowering the income you're taxed on.
Employee half (50%) — tax credit
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Claimed as a non-refundable credit, reducing the tax you owe.
Estimate only. Uses the verified 2026 CPP figures — YMPE $74,600, $3,500 basic exemption, base self-employed rate 11.9% (max $8,460.90), and CPP2 at 8% between $74,600 and $85,000 (max $832.00), for a combined maximum of $9,292.90. Quebec residents pay QPP instead, at a different rate. Not tax advice; confirm specifics with a Canadian accountant.
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The short answer: in 2026 a self-employed Canadian pays 11.9% on net income between $3,500 and $74,600 (base CPP, up to $8,460.90), plus 8% on income between $74,600 and $85,000 (CPP2, up to $832.00). The combined maximum is $9,292.90. You pay both halves — the employee's and the employer's — because you are both.
Why self-employed CPP feels like double
An employee pays 5.95% of their pensionable earnings toward CPP, and their employer quietly pays the matching 5.95% — the employee rarely sees that second half. When you're self-employed, you are both the worker and the employer, so you pay both halves yourself: 11.9% combined. It's the number that surprises most people on their first self-employed return.
The same doubling applies to CPP2, the second additional contribution being phased in since 2024. Once your income passes the first ceiling ($74,600 in 2026), a second rate applies to the slice up to the second ceiling ($85,000): 8% for the self-employed, up to $832.00. Most older calculators stop at the first ceiling and never mention CPP2 — which is exactly the slice this tool adds back.
A worked example
Take $80,000 of net self-employment income in 2026:
- Base CPP — income is above the $74,600 ceiling, so you pay on the full band: ($74,600 − $3,500) × 11.9% = $8,460.90 (the base maximum).
- CPP2 — on the slice above the first ceiling: ($80,000 − $74,600) × 8% = $432.00.
- Total CPP = $8,460.90 + $432.00 = $8,892.90.
Of that total, the employer half ($4,446.45) is deductible from your net income, and the employee half ($4,446.45) is claimed as a non-refundable tax credit. That's an explainer of the treatment, not tax advice.
Where this fits in your set-aside
CPP is only one part of what you owe. To see the whole picture — federal + provincial income tax and CPP, by the month — use the tax set-aside calculator. If you're weighing a job offer against contracting, the employee vs self-employed calculator shows both halves of CPP side by side. And for the full map, start with the self-employed taxes in Canada guide.
Sources
Every 2026 figure in this tool was verified against the Canada Revenue Agency on 2026-07-30:
- Base CPP — YMPE $74,600, basic exemption $3,500, self-employed rate 11.9%, maximum $8,460.90: CRA — CPP contribution rates, maximums and exemptions
- CPP2 — second ceiling (YAMPE) $85,000, self-employed rate 8%, maximum $832.00: CRA — Second additional CPP (CPP2) contribution rates and maximums
- Both-halves rule & the CPP enhancement: CRA — Canada Pension Plan (CPP) and the CPP enhancement
People also ask
How much CPP do self-employed people pay in 2026?
A self-employed Canadian pays 11.9% on net income between $3,500 and $74,600 (base CPP, max $8,460.90), plus 8% on income between $74,600 and $85,000 (CPP2, max $832). The combined maximum for 2026 is $9,292.90. You pay both the employee and employer halves because you are both.
Do self-employed people pay both halves of CPP?
Yes. An employee pays 5.95% and their employer pays the matching 5.95%. A self-employed person is both the worker and the employer, so they pay both halves — 11.9% in total on base CPP. The same doubling applies to CPP2 (8% self-employed vs 4% for an employee).
What is CPP2 and why do most calculators miss it?
CPP2 is the second additional CPP contribution, phased in since 2024. It applies a separate rate on earnings above the first ceiling (the YMPE, $74,600 in 2026) up to a second ceiling (the YAMPE, $85,000 in 2026). For self-employed people that is 8%, up to $832. Many older calculators only compute base CPP and stop at the first ceiling, so they understate what higher earners actually owe.
Is any of my self-employed CPP deductible?
Yes. Of your total self-employed CPP, the "employer half" (50%) is deductible from your net income on your return, which lowers the income you are taxed on. The other "employee half" (50%) is claimed as a non-refundable tax credit. This is an explainer, not tax advice — confirm the exact lines with a Canadian accountant.
Do self-employed people pay CPP in Quebec?
No — Quebec has its own plan, the QPP (Quebec Pension Plan), with its own rate. If you file in Quebec, this calculator will not match your return. This tool covers CPP for the rest of Canada.
VRITTI sets aside your CPP as you earn.
CPP is part of what the app tracks in your growing CRA set-aside — so the money is already there when your return is due, both halves and all.
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