CPP Contribution Rates & Maximums 2026
In 2026, employees contribute 5.95% of pensionable earnings between $3,500 and $74,600, for a maximum contribution of $4,230.45. CPP2 adds 4% on earnings from $74,600 to $85,000 (max $416.00).
First-Tier CPP Contributions
| Year's Maximum Pensionable Earnings (YMPE) | $74,600 |
| Basic Exemption | $3,500 |
| Maximum Contributory Earnings | $71,100 |
| Employee Rate | 5.95% |
| Employer Rate | 5.95% |
| Self-Employed Rate | 11.9% |
| Max Employee Contribution | $4,230.45 |
Sources
- Canada Revenue Agency, CPP contribution rates, maximums and exemptions (Table "CPP contribution rates, maximums and exemptions", 2026 row (maximum pensionable earnings, basic exemption, maximum contributory earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.3 Canada Pension Plan / Quebec Pension Plan 2026 contribution rates and amounts, row CPP (Canada except QC)). Checked September 28, 2026.
How CPP Is Taxed
CPP comes straight off your paycheque, but not all of it is treated the same way at tax time.
| Base portion: 4.95% (max $3,519.45) | Non-refundable tax credit |
| First additional portion: 1% (max $711.00) | Deducted from income |
| CPP2: 4% (max $416.00) | Deducted from income |
Sources
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.4 Base Canada Pension Plan / Quebec Pension Plan 2026 rates and amounts, row CPP (Canada except QC) (0.0495; 3,519.45) and Table 8.5 First additional Canada Pension Plan / Quebec Pension Plan 2026 rates and amounts, row CPP (Canada except QC) (0.0100; 711.00); Chapter 4, Step 2, K2 applies the credit to C x (0.0495/0.0595)). Checked September 28, 2026.
- Canada Revenue Agency, Line 30800 - Base CPP or QPP contributions through employment income (Section "Completing your tax return" (base contributions from Schedule 8 or Form RC381 are entered on line 30800) and section "Overpayment" (base and enhanced contributions are claimed separately, at lines 30800 and 22215)). Checked September 28, 2026.
- Canada Revenue Agency, Line 22215 - Deduction for CPP or QPP enhanced contributions on employment income (Section "Your CPP or QPP contributions consist of" (a first additional amount, and a second additional amount on pensionable earnings between the YMPE and the YAMPE) and section "Calculating your deduction"). Checked September 28, 2026.
CPP2 (Second Additional Contribution)
CPP2 was introduced January 1, 2024, and applies to earnings above the YMPE. It provides additional pension benefits on higher earnings.
| Year's Additional Maximum (YAMPE) | $85,000 |
| CPP2 Earnings Range | $74,600 – $85,000 |
| Employee Rate | 4% |
| Max CPP2 Employee Contribution | $416.00 |
Sources
- Canada Revenue Agency, Second additional CPP (CPP2) contribution rates and maximums (Table "CPP2 contribution rates and maximums", 2026 row (additional maximum pensionable earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.6 Second additional Canada Pension Plan / Quebec Pension Plan 2026 rates and amounts, row CPP (Canada except QC)). Checked September 28, 2026.
Total Maximum Contributions 2026
Employee
$4,646.45
First tier $4,230.45 + CPP2 $416.00
Employer
$4,646.45
Matches employee contribution
Self-Employed
$9,292.90
Both employee + employer portions
Sources
- Canada Revenue Agency, CPP contribution rates, maximums and exemptions (Table "CPP contribution rates, maximums and exemptions", 2026 row (maximum pensionable earnings, basic exemption, maximum contributory earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.3 Canada Pension Plan / Quebec Pension Plan 2026 contribution rates and amounts, row CPP (Canada except QC); Chapter 8, Table 8.6 Second additional Canada Pension Plan / Quebec Pension Plan 2026 rates and amounts, row CPP (Canada except QC)). Checked September 28, 2026.
- Canada Revenue Agency, Second additional CPP (CPP2) contribution rates and maximums (Table "CPP2 contribution rates and maximums", 2026 row (additional maximum pensionable earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
What This Means At Your Income
| Income | CPP Contribution | % of Income |
|---|---|---|
| $50,000 | $2,766.75 | 5.5% |
| $75,000 | $4,246.45 | 5.7% |
| $100,000 | $4,646.45 | 4.6% |
| $150,000 | $4,646.45 | 3.1% |
Calculated by the same engine as the drained.ca calculator.
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Calculate Your Tax Burden→Frequently Asked Questions
How much is CPP in 2026?
In 2026, employees contribute 5.95% of pensionable earnings between $3,500 and $74,600, for a maximum contribution of $4,230.45 on that first tier. CPP2 adds 4% on earnings between $74,600 and $85,000 (max $416). Total maximum employee contribution is $4,646.45.
What is CPP2 and how does it work?
CPP2 (second additional CPP contribution) was introduced January 1, 2024. It applies to earnings between the YMPE ($74,600) and YAMPE ($85,000). The employee rate is 4%, with a maximum contribution of $416 in 2026. Self-employed pay both the employee and employer portions (8%).
What is the YMPE for 2026?
The Year's Maximum Pensionable Earnings (YMPE) for 2026 is $74,600. This is the upper limit for first-tier CPP contributions. Earnings above this amount (up to YAMPE of $85,000) are subject to CPP2.
Is CPP taxed?
Partly. Of the 5.95% you pay on the first tier, 4.95% earns a non-refundable tax credit at the lowest federal and Alberta rates. The other 1%, plus all of CPP2, is deducted from your income before tax is calculated.
Rates verified against CRA sources on September 28, 2026. View methodology →