Are taxes automatically deducted from CPP, or do I have to request taxes be deducted?
Canada Pension Plan (CPP) payments are fully taxable as income. You can request that federal taxes be deducted from your payments by completing the form Request for Voluntary Federal Income Tax Deductions form (ISP 3520). Speak to your financial advisor or tax professional to determine an appropriate amount for deduction based on your personal financial situation.
Learn more about CPP administration from Service Canada. Learn more about government benefits on GetSmarterAboutMoney.ca.