CPP for Non-Residents: Apply and Report Canadian Pension Income

Applying for CPP as a non-resident of Canada

Maryann, here is a clear overview of what you need to know about applying for the Canada Pension Plan (CPP) while living outside Canada, plus related issues such as U.S. Social Security and Old Age Security (OAS). I’ll explain who can apply, how residency affects payments and taxes, and options you might consider for timing your benefits.

Who can apply for CPP

You can apply for a Canada Pension Plan retirement pension even if you live outside Canada. Residency does not affect eligibility: CPP is based on contributions you and your employers made while you worked in Canada. Service Canada keeps a record of contributions starting from when you turned 18.

CPP can begin as early as age 60 and as late as age 70. Delaying your application increases the monthly amount, so choosing when to start is an important decision depending on your health, finances and other retirement income.

The application route is more limited for non-residents. While residents often use the My Service Canada Account online portal, non-residents must apply by mail using the official application form. Service Canada recommends applying about six months before you want payments to begin, and pension payments can be made retroactively for up to 12 months.

CPP can also be deposited into a foreign bank account and paid in a foreign currency. If you receive CPP as a non-resident you will get an NR4 tax statement showing amounts paid and any tax withheld; that income may be taxable in the country where you live. For U.S. residents, 85% of CPP income is taxable and must be reported on the U.S. federal tax return (Form 1040).

What’s the maximum CPP pension?

The maximum CPP retirement pension requires many years of maximum contributions—typically around 39 years—to reach the top benefit. As of the reference period in the original article, the maximum was $1,455 per month at age 65.

Based on your timeline—graduating in 1987 and working full time by 1988—you would have about 37 eligible contribution years through the end of 2024. Since you have been living and working in the U.S. for three years, you are likely a bit short of the full 39 years required to receive the absolute maximum pension amount.

You can request a CPP Statement of Contributions from Service Canada to verify your recorded contribution years and amounts; that will tell you exactly where you stand.

CPP child-rearing provision

One provision that often increases a CPP entitlement is the child-rearing dropout. If you were the primary caregiver for children under seven, some years with reduced or no contributions can be excluded from the CPP calculation. That exclusion can raise your calculated pension amount and may apply to the years when you took maternity leave. This adjustment may not always be visible in an online statement, so be sure to confirm it on your formal Statement of Contributions.

U.S. Social Security for Canadians

U.S. Social Security is similar to CPP but generally requires 40 quarters of coverage (about 10 years) to qualify. However, the U.S.-Canada Totalization Agreement allows combining periods of work in both countries to meet eligibility thresholds. Under that agreement, Canadians may be able to qualify for U.S. Social Security with fewer than 40 quarters by counting eligible CPP contributions toward the requirement.

Given your few years of work in the U.S., you may be eligible for a small Social Security benefit once you meet the adjusted requirement. Historically, Social Security’s Windfall Elimination Provision (WEP) reduced benefits for people who also receive non-covered pensions such as CPP, but recent legislative changes mean WEP no longer applies after December 2023.

OAS for non-residents

Old Age Security (OAS) eligibility is tied to years of residency in Canada after age 18. Generally, you need at least 20 years of Canadian residency after age 18 to qualify as a non-resident, and 40 years to qualify for the maximum OAS pension. The maximum OAS cited in the original article was $728 per month for a 65-year-old in early 2025.

Withholding tax rules for OAS depend on your country of residence; U.S. residents generally do not face Canadian withholding tax on OAS, but OAS is taxable in the U.S. Some non-residents must complete an annual Old Age Security return of income depending on their country of residence; under the terms referenced, U.S. residents do not need to file that specific Canadian form. Also, if your worldwide income exceeds the OAS recovery threshold—reported as $93,464 for 2025—you could see a reduction in OAS, though U.S. residents are not subject to a separate high-income withholding in the same way.

Pension income planning for non-residents of Canada

In summary: you can apply for CPP while living in the U.S. provided you are at least 60. Non-residents must apply by mail, and CPP payments can be sent to foreign bank accounts. CPP income will generally be taxable in the U.S. and reported on the U.S. tax return. Check your Statement of Contributions to confirm how many contributing years you have and whether the child-rearing dropout applies.

Your CPP contributions may also help you qualify for a U.S. Social Security benefit under the U.S.-Canada agreement, and recent changes to Social Security rules remove the historic WEP reduction for many retirees. You can apply for OAS at age 65 if you meet the residency requirements.

If you are in good health, have a conservative risk profile or limited other pension income, you may want to consider deferring CPP and OAS up to age 70 to maximize lifetime income—especially if you do not need the benefits immediately. The decision to delay should factor in your life expectancy, financial needs, and other retirement resources.

Read more about pensions:

• OAS payment dates, and more to know about Old Age Security
• CPP payment dates, and more to know about the Canada Pension Plan
• How much money should I have saved by age 40?
• How to plan for retirement when you have no pension