Canada Tax Agency Announces Maximum Pensionable Earnings, Contributions for 2025

The Canadian Revenue Agency Nov. 1 announced maximum pensionable earnings and contributions for 2025. The announcement includes increases in: 1) the year’s maximum pensionable earnings (YMPE) under the Canada Pension Plan (CPP), to C$71,300 (US$51,213) from C$68,500 (US$49,203), with the basic exemption amount remaining unchanged at $3,500 (US$2,513); 2) maximum employee and employer CPP contribution rates, each to C$4,034.10 (approximately US$2,897) from C$3,867.50 (approximately US$2,777); 3) the year’s additional maximum pensionable earnings (YAMPE), to C$81,200 (US$58,313) from C$73,200 (US$52,568); and 4) maximum second additional Canada Pension Plan contributions (CPP2) for employees and employers, each to C$396 (US$284) from C$188 (US$135). ...