Sorry for your loss. If you are speaking of the one time payment, please see the Canada Revenue Agency (CRA) for information. 

Not taxable in certain circumstances

A CPP/QPP death benefit will generally not be taxable if the recipient is not the estate or a beneficiary of the estate, and all of the following circumstances apply:

• The taxpayer who received the death benefit paid the deceased's funeral expenses
• The amount of the death benefit is not more than the funeral expenses
• The deceased has no heirs, and there is no other property in the estate

To clarify further information, please contact the CRA by calling them at 1-800-959-8281.

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