The Burning Question: How Much CPP Will I Pony Up in Ontario in 2023? (Spoiler Alert: It Ain't Free Beer)
Ah, the Canada Pension Plan (CPP). For many of us working folks in Ontario (or anywhere in Canada, really), the CPP is a bit of a mystery box. We know it's there, silently siphoning off a chunk of our hard-earned cash each paycheck, but exactly how much is anyone's guess. Well, fret no more, my fellow financially curious comrades! Today, we're cracking open the CPP piggy bank and taking a peek inside.
 |
| How Much Is Cpp In Ontario 2023 |
Buckle Up, Buttercup: Here's the Lowdown on 2023 CPP Contributions
The Big Kahuna: In 2023, both employees and employers in Ontario (and all of Canada) coughed up a contribution rate of 5.95% on earnings up to a maximum of $66,600.
Translation: Let's say you're a salary samurai pulling in a cool $50,000 a year. In this case, you and your employer would each be chipping in $2,975 to the CPP kitty (for a grand total of $5,950).
But Wait, There's More! (Except There Really Isn't)
Tip: Take a sip of water, then continue fresh.
There's a handy dandy basic exemption amount of $3,500 that you don't have to pay CPP on. So, if you're a part-timer making less than that, you're off the hook (score!).
Self-Employed Superstars? We Got You Covered (Kind Of)
If you're the boss of you (and possibly a few others), the CPP game changes a bit. Us self-employed folks are responsible for the entire contribution, which means you'll be paying 11.90% on your earnings up to the same $66,600 limit. So, essentially, you're footing the bill for both the employee and employer portions.
Tip: Don’t overthink — just keep reading.
But Remember, It's an Investment (Hopefully)
While it might feel like the CPP is constantly asking for a loan you never plan to repay, it's actually a social security program designed to provide you with a sweet retirement income later in life. The more you contribute, the bigger your payout!
FAQ: Your CPP Conundrums Conquered!
How to Check My CPP Contributions?
QuickTip: Look for patterns as you read.
 |
Your friendly neighborhood employer should be able to provide a breakdown of your CPP contributions on your pay stub.
How Much CPP Will I Get When I Retire?
The amount you receive in retirement depends on how much you contributed and for how long. You can estimate your future CPP payments using the Canadian Retirement Income Calculator [on the Government of Canada website].
QuickTip: Highlight useful points as you read.
How to Avoid Paying CPP Altogether?
Unfortunately, unless you plan on living off the grid and hunting squirrels for sustenance, CPP contributions are mandatory for most working Canadians. Sorry!
How to Make Extra CPP Contributions?
While there's no way to directly contribute more than the maximum, some voluntary contribution options might be available depending on your employment situation. Check with the Canada Revenue Agency for more info.
How to Invest My Leftover CPP Cash (That I Totally Wish I Had)?
Well, that's a whole other topic, my friend! But hey, at least you're now a CPP pro. Now go forth and conquer your financial goals!
 |
💡 This page may contain affiliate links — we may earn a small commission at no extra cost to you.
