CPP contributions in 2026
Every paycheque between 18 and 70 carries two Canada Pension Plan deductions at most, and the 2026 ceilings decide when each one stops.
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In 2026, employees pay 5.95 % of their earnings between the basic exemption of $3,500 and the yearly maximum pensionable earnings of $74,600, for a maximum base contribution of $4,230.45. Earnings above that ceiling and up to $85,000 carry the second additional contribution, CPP2, at 4 %, which adds at most $416. An employee therefore pays no more than $4,646.45 for the year, and the employer pays the same amount again. Self-employed workers pay both shares: up to $8,460.90 for base CPP and $832 for CPP2. On a salary of $50,000, the base contribution comes to $2,766.75, with no CPP2. Contributions start the month after you turn 18 and stop after the month you turn 70. Between 65 and 70, someone already receiving a CPP or QPP retirement pension can choose to stop, and an employee considered disabled under the CPP does not contribute. The amounts actually deducted are those on your pay stubs and your notice of assessment.
Your 2026 CPP and CPP2 contributions
Your contributions for 2026
$3,361.75
| Base CPP | $3,361.75 |
| CPP2 (earnings above the YMPE) | $0.00 |
| Your employer adds | $3,361.75 |
| Per month on average | $280.15 |
Base CPP stops at $74,600, CPP2 at $85,000.
The 2026 parameters
| Parameter | 2026 value |
|---|---|
| Basic exemption | $3,500 |
| Yearly maximum pensionable earnings (YMPE) | $74,600 |
| Maximum contributory earnings (YMPE minus exemption) | $71,100 |
| Employee and employer rate, base CPP | 5.95 % |
| Maximum employee contribution, base CPP | $4,230.45 |
| Year’s additional maximum pensionable earnings (YAMPE) | $85,000 |
| Employee and employer rate, CPP2 | 4 % |
| Maximum employee contribution, CPP2 | $416 |
| Maximum self-employed contribution, base CPP plus CPP2 | $9,292.90 |
The base figures come from the CRA page on contribution rates, maximums and exemptions (CRA, CPP contribution rates, maximums and exemptions), and the CPP2 figures from its page on the second additional contribution (CRA, Second additional CPP contribution (CPP2) rates and maximums). The YMPE went up from $71,300 in 2025 to $74,600 in 2026, so the maximum contribution rose with it, even though the rate did not change.
What you pay at different earnings
| Earnings | Base CPP | CPP2 | Employee total | Self-employed total |
|---|---|---|---|---|
| $30,000 | $1,576.75 | $0.00 | $1,576.75 | $3,153.50 |
| $50,000 | $2,766.75 | $0.00 | $2,766.75 | $5,533.50 |
| $74,600 | $4,230.45 | $0.00 | $4,230.45 | $8,460.90 |
| $80,000 | $4,230.45 | $216.00 | $4,446.45 | $8,892.90 |
| $85,000 | $4,230.45 | $416.00 | $4,646.45 | $9,292.90 |
| $120,000 | $4,230.45 | $416.00 | $4,646.45 | $9,292.90 |
The base contribution grows in a straight line from the exemption to the YMPE and then stops. CPP2 only begins above the YMPE and stops at the YAMPE, so it touches a narrow band of $10,400. Beyond $85,000 the total is flat: someone earning $120,000 pays exactly what someone earning $85,000 pays.
Three workers, three bills
A student who earns $12,000 over the year in a part-time job pays $505.75: only the slice above the exemption is charged, so the effective rate on the whole income is 4.2 %. A nurse earning $80,000 reaches the base maximum of $4,230.45 and pays $216.00 of CPP2 on the $5,400 above the YMPE, $4,446.45 in all; her employer adds the same. A self-employed graphic designer with $45,000 of net business income pays $4,938.50, twice what an employee with the same earnings would see on a pay stub, because there is no employer to share the cost.
The designer’s bill surprises people most, because no payroll spreads it across the year. Setting aside about 11.9 % of each invoice above the exemption avoids the shock.
Your 2026 CPP and CPP2 contributions
Your contributions for 2026
$3,361.75
| Base CPP | $3,361.75 |
| CPP2 (earnings above the YMPE) | $0.00 |
| Your employer adds | $3,361.75 |
| Per month on average | $280.15 |
Base CPP stops at $74,600, CPP2 at $85,000.
Two layers, and why CPP2 exists
Since January 1, 2019, the plan has been building an enhanced component on top of the base pension. Service Canada describes it as resting on an 11.9 % contribution rate shared equally by employees and employers, which is the 5.95 % each side pays today (Service Canada, CPP retirement pension: How much you could receive (modified 2026-09-29)). CPP2 extends that enhancement to earnings above the YMPE. The extra contribution is not lost: it raises the pension paid later, which is why the maximum pension keeps rising as new cohorts retire with more enhanced years.
For a worker, the practical result is a deduction of up to $4,646.45 a year, matched by the employer. Counted together, employee and employer put up to $9,292.90 a year into the plan for one well-paid worker, the same total a self-employed person pays alone. What that buys at retirement shows up in the CPP calculator, once your statement reflects the years paid in.
When contributions start and stop
An employer starts deducting CPP from the first pay dated in the month after an employee turns 18, and stops after the last pay dated in the month the employee turns 70 (CRA, Starting and stopping CPP deductions (modified 2025-10-21)). Two exceptions matter:
- an employee aged 65 to under 70 who receives a CPP or QPP retirement pension can elect to stop contributing with form CPT30, and revoke that choice later;
- an employee considered disabled under the CPP does not have to contribute, which the CPP disability guide covers from the recipient’s side.
Choosing to keep contributing after starting your pension is not wasted money. Each year adds a post-retirement benefit to your income for life, an argument the guide on starting at 60 or 70 weighs against the start-age adjustment.
Years that count for benefits
Your statement of contributions in My Service Canada Account lists your recorded earnings year by year. Checking it every few years catches a missing year while the pay stubs and T4 slips are still easy to find, which matters because the pension, the disability benefit and the death benefit are all calculated from that record and nothing else.
Contributions do more than build the retirement pension. The disability benefit requires contributions in recent years, and the death benefit requires a minimum number of contributory years. A year in which earnings stayed under the $3,500 exemption produces no contribution and therefore does not count. Workers in Quebec contribute to the Quebec Pension Plan instead, under its own rates.