The CRA also updated the RRSP dollar limit
The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan for 2023 will be $66,600, up from $64,900 in 2022.
Contributors who earn more than $66,600 in 2023 are not permitted to make additional contributions to the CPP. The basic exemption amount for 2023 remains at $3,500, according to a release from the CRA.
The RRSP dollar limit, which is indexed, will be $31,560 for 2024 and $30,780 for 2023, up from $29,210 for 2022.
The TFSA limit for 2023 will be announced later this year and is expected to increase to $6,500.
Employee and employer CPP contribution rates for 2023 will be 5.95%, up from 5.70% in 2022, and the self-employed contribution rate will be double that. The increase in contribution rate is due to the continued implementation of the CPP enhancement.
The maximum employer and employee contribution to the CPP for 2023 will be $3,754.45 each and the maximum self-employed contribution will be double that. The maximums in 2022 were $3,499.80 and $6,999.60, respectively.