CPP Contribution Rates 2026 Canada: What You'll Pay This Year
Understanding exactly how much CPP comes off your paycheque - including the new CPP2 enhanced contributions.
2026 CPP Numbers at a Glance
5.95%
Employee Rate
$4,230
Max Contribution
$74,600
YMPE
$3,500
Basic Exemption
Every paycheque, a chunk goes to CPP. But do you actually know how much? With the CPP enhancement rolling out in phases, the rates have been changing yearly. Here's exactly what you'll pay in 2026.
2026 CPP Contribution Rates
| Component | Employee | Self-Employed |
|---|---|---|
| Base CPP Rate | 5.95% | 11.90% |
| Maximum Pensionable Earnings (YMPE) | $74,600 | |
| Basic Exemption | $3,500 | |
| Maximum Annual Contribution | $4,230.45 | $8,460.90 |
CPP2: The Second Ceiling (Enhanced CPP)
Since 2024, there's a second layer of CPP contributions for higher earners. This is called CPP2 or the "second additional CPP contribution."
2026 CPP2 Details:
- Applies to: Earnings between $74,600 (YMPE) and $85,000 (YAMPE)
- Employee Rate: 4.00%
- Self-Employed Rate: 8.00%
- Maximum CPP2 Contribution: $416 (employee) / $832 (self-employed)
So if you earn over $85,000, you'll pay the maximum: $4,230.45 (CPP) + $416 (CPP2) = $4,646.45 total for employees.
How to Calculate Your CPP
Here's the formula:
CPP = (Income - $3,500) × 5.95%
Capped at $4,230.45 for employees
Example Calculations
Earning $60,000/year:
- Pensionable earnings: $60,000 - $3,500 = $56,500
- CPP contribution: $56,500 × 5.95% = $3,361.75
- Monthly deduction: ~$280
Earning $90,000/year:
- Base CPP: Maximum $4,230.45 (hit the YMPE cap)
- CPP2: ($85,000 - $74,600) × 4% = $416
- Total: $4,646.45
- Monthly deduction: ~$387
CPP Rates Over Time
| Year | Rate | YMPE | Max Contribution |
|---|---|---|---|
| 2026 | 5.95% | $74,600 | $4,230.45 |
| 2025 | 5.95% | $71,300 | $4,034.10 |
| 2024 | 5.95% | $68,500 | $3,867.50 |
| 2023 | 5.95% | $66,600 | $3,754.45 |
| 2022 | 5.70% | $64,900 | $3,499.80 |
Self-Employed? You Pay Double
If you're self-employed, you pay both the employee AND employer portions. That's 11.90% up to the YMPE, plus 8% on earnings between YMPE and YAMPE.
Self-Employed Maximum 2026:
- Base CPP: $8,460.90
- CPP2 (if applicable): $832.00
- Total Maximum: $9,292.90
The good news: half is tax-deductible as a business expense.
Why CPP Matters for Your Budget
CPP contributions affect your take-home pay directly. When budgeting, you need to account for these mandatory deductions. The difference between gross and net pay can be significant:
- CPP: Up to $4,646.45/year
- EI: Up to $1,077.48/year
- Federal + Provincial Tax: Varies by income
On a $70,000 salary, CPP alone takes about $3,900 per year - that's $325/month that never hits your bank account.
The Bottom Line
CPP contributions are mandatory, but understanding them helps you budget accurately. For 2026, expect to contribute up to $4,230.45 (base) plus up to $416 (CPP2) if you're a higher earner.
The upside? These contributions fund your future CPP retirement pension. The more you contribute over your working life, the higher your monthly CPP payment in retirement.
Related Guides:
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