CRA announced last month that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2018 will be $55,900, up from $55,300 in 2017.
Contributors who earn more than $55,900 in 2018 are not required or permitted to make additional contributions to the CPP. The basic exemption amount for 2018 remains $3,500, as it was for 2017.
CRA has also updated several of its indexed amounts, including the RRSP limit and the lifetime capital gains exemption. The TFSA contribution limit has also been set at $5,500 for 2018. We’ve summarized the most important figures in our Essential Tax Numbers guide.
Other pensionable earnings details
The employee and employer contribution rates for 2018 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the plan for 2018 will be $2,593.80 each and the maximum self-employed contribution will be $5,187.60. The maximums in 2017 were $2,564.10 and $5,128.20.