CRA announces CPP max pensionable earnings for 2024

The maximum pensionable earnings under the Canada Pension Plan for 2024 will be $68,500, up from $66,600 in 2023, according to the Canada Revenue Agency.

And beginning next year, a second earnings ceiling of $73,200 will be used to determine additional CPP contributions, known officially as the year’s additional maximum pensionable earnings. As a result, earnings between $68,500 and $73,200 will subject to a second tranche of CPP contributions as part of the plan’s expansion that began in 2019.

The basic exemption amount for 2024 remains at $3,500.

Employee and employer CPP contribution rates for 2024 remain at 5.95%, and the maximum contribution will be $3,867.50 each — up from $3,754.45 in 2023. The self-employed CPP contribution rate is double.

Employee and employer contribution rates for the second earnings tranche will be 4.00% in 2024, and the maximum contribution will be $188.00 each, with the self-employed rate double that.

The RRSP dollar limit, which is indexed, will be $32,490 for 2025 and $31,560 for 2024, up from $30,780 for 2023.

The TFSA limit for 2024, expected to be announced later this year, is expected to increase to $7,000, up from the current $6,500.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.