The Quebec Pension Plan (QPP / Régime de rentes du Québec) is Quebec’s provincial retirement plan, administered by Retraite Quebec. Quebec opted out of the Canada Pension Plan (CPP) in 1965 and established its own equivalent. Quebec workers contribute to QPP rather than CPP. The QPP contribution structure includes a base component (QPP1) and an enhanced component (QPP2), paralleling the CPP1/CPP2 structure introduced federally in 2019.
2025 QPP Contribution Rates and Limits
| Parameter | 2025 Value |
|---|---|
| Year’s Maximum Pensionable Earnings (YMPE) | $71,300 |
| Year’s Additional Maximum Pensionable Earnings (YAMPE) | $81,900 |
| Year’s Basic Exemption (YBE) | $3,500 |
| QPP1 employee contribution rate | 6.40% |
| QPP1 employer contribution rate | 6.40% |
| QPP1 maximum employee contribution | $4,339.20 |
| QPP2 employee contribution rate | 4.00% |
| QPP2 maximum employee contribution | $416.00 |
| Total maximum employee QPP (QPP1 + QPP2) | $4,755.20 |
QPP vs. CPP Contribution Comparison
| Feature | QPP (Quebec) | CPP (Other Provinces) |
|---|---|---|
| Base (QPP1/CPP1) employee rate | 6.40% | 5.95% |
| Enhanced (QPP2/CPP2) employee rate | 4.00% | 4.00% |
| YMPE | $71,300 | $71,300 |
| Max QPP1/CPP1 employee contribution | $4,339.20 | $4,034.10 |
| Tax treatment (employee portion) | Federal credit + Quebec deduction | Federal credit only |
Calculation Example
An employee earning $85,000 in Quebec employment income in 2025:
- QPP1 base: ($71,300 − $3,500) × 6.40% = $67,800 × 6.40% = $4,339.20 (maximum, as income exceeds YMPE)
- QPP2: ($81,900 − $71,300) × 4.00% = $10,600 × 4.00% = $424.00 (wait — $81,900 is YAMPE, but QPP2 max is $416 for 2025; the YAMPE x rate may produce $424 but the published maximum is $416.00; use the published maximum)
- Total QPP: $4,339.20 + $416.00 = $4,755.20
Tax Treatment in Quebec
Federal return (T1): Employee QPP1 contributions generate a 15% non-refundable tax credit under ITA s.118.7. QPP2 employee contributions generate a separate 15% federal credit under ITA s.118.7(2.1).
Quebec provincial return (TP-1): QPP1 employee contributions are deductible from Quebec net income (line 248 of TP-1), which is more valuable than a credit at lower income levels. The deduction reduces Quebec taxable income at the applicable marginal rate. QPP2 generates a separate Quebec provincial refundable tax credit.
Self-Employed QPP
Self-employed workers in Quebec pay both employee and employer portions of QPP1 (12.80% total) and QPP2 (8.00% total). The employer-portion of QPP1 is deducted from Quebec business income; the employee-portion generates the federal credit and Quebec deduction. Maximum total self-employed QPP in 2025 is $9,510.40 ($4,339.20 × 2 + $416.00 × 2).
Source
Retraite Quebec QPP contribution rates 2025; ITA s.118.7 (CPP/QPP tax credit); Quebec TP-1 Guide; Retraite Quebec annual report.
Frequently asked questions
- What is the Quebec Pension Plan (QPP)?
- The Quebec Pension Plan (QPP / Regime de rentes du Quebec) is Quebec's provincial equivalent of the Canada Pension Plan (CPP). Quebec operates its own pension plan because it opted out of CPP when CPP was created in 1965. Quebec residents contribute to QPP, not CPP. The benefit structure is broadly similar: a retirement pension based on contributions, survivor benefits, and disability benefits. Retraite Quebec administers the QPP.
- What are the QPP contribution rates for 2025?
- For 2025, the QPP base contribution rate (QPP1) for employees is 6.40% and for employers is 6.40% (the employee rate is higher than CPP's 5.95%). The additional contribution (QPP2) rate is 4.00% for employees and 4.00% for employers, identical to CPP2. The YMPE (Year's Maximum Pensionable Earnings) is $71,300 for 2025, matching the CPP YMPE.
- How is a QPP contribution calculated for an employee?
- Employee QPP1 contribution = (employment income - YBE) x 6.40%, up to a maximum. The Year's Basic Exemption (YBE) is $3,500. Maximum QPP1 employee contribution for 2025 = ($71,300 - $3,500) x 6.40% = $67,800 x 6.40% = $4,339.20. QPP2 applies to income between the YMPE ($71,300) and the YAMPE ($81,900): maximum QPP2 contribution = ($81,900 - $71,300) x 4.00% = $416.00.
- How does QPP differ from CPP?
- QPP and CPP have different contribution rates: QPP1 employee rate is 6.40% versus CPP1 employee rate of 5.95%. QPP covers similar benefits: retirement pension, disability pension, survivor's pension, and death benefit. The QPP disability benefit is calculated differently and has different eligibility criteria than CPP disability. QPP's retirement pension formula is comparable to CPP's. Workers who have contributed to both CPP (from other provinces) and QPP receive benefits from both programs proportionate to contributions.
- Is QPP deductible on a Quebec provincial tax return?
- Employee QPP1 contributions generate a 15% federal non-refundable tax credit under ITA s.118.7. On the Quebec provincial return (TP-1), QPP1 employee contributions are deductible from Quebec net income as a deduction (not just a credit), at the Quebec income tax rates. QPP2 contributions generate a separate Quebec provincial tax credit. This deduction treatment in Quebec is more favourable than the federal credit-only treatment.
- When can I start receiving QPP retirement pension in Quebec?
- QPP retirement pension can start as early as age 60 (reduced) or as late as age 70 (enhanced). Starting at 60 reduces the pension by 0.5% per month before age 65 (6% per year), for a maximum reduction of 30% at age 60. Starting after 65 increases the pension by 0.7% per month (8.4% per year), for a maximum enhancement of 42% at age 70. These rates are identical to CPP.
- What is the maximum QPP retirement pension in 2025?
- The maximum new QPP retirement pension at age 65 in 2025 is approximately $1,433.00 per month for contributors at the maximum YMPE throughout their career. This is slightly higher than the maximum CPP retirement pension ($1,364.60) because QPP contribution rates have been higher. The exact maximum depends on contribution history throughout the contributor's career.
- What is the QPP death benefit?
- The QPP death benefit is a one-time lump sum paid to the estate of a deceased QPP contributor. The maximum amount is $2,500. The estate applies using form RRQ-61. The death benefit is taxable income to the estate or the recipient.
- Are QPP benefits indexed to inflation?
- Yes. QPP retirement, disability, and survivor pensions are indexed to the Consumer Price Index (CPI) for Quebec annually. The indexation calculation uses Quebec's provincial CPI index. Federal CPP uses the national CPI. Both programs adjust benefits each January based on the prior year's inflation.
- Do self-employed workers in Quebec pay QPP?
- Yes. Self-employed workers in Quebec contribute both the employee and employer portions of QPP1 (12.80% total on net self-employment income minus the YBE, up to the YMPE) and QPP2 (8.00% on income between the YMPE and YAMPE). The employee portion generates a federal tax credit and Quebec provincial deduction; the employer portion generates a Quebec provincial deduction. The total maximum self-employed QPP contribution in 2025 is approximately $4,339.20 x 2 + $416 x 2 = $9,510.40.