What is the CPP contribution rate for 2026?

The CPP1 rate for employees in 2026 is 5.95% on pensionable earnings between $3,500 and $74,600. The CPP2 rate is 4% on earnings between $74,600 and $85,000. Employers match both contributions.

What is the maximum CPP contribution for 2026?

The maximum employee CPP1 contribution in 2026 is $4,230.45. The maximum CPP2 contribution is $416. Combined, the maximum total employee contribution is $4,646.45.

CPP2 is the second component of the CPP enhancement, which began in 2024. It applies to earnings between the first ceiling (YMPE) and second ceiling (YAMPE) at a rate of 4% for employees and employers, or 8% for self-employed.

Do self-employed people pay double CPP?

Yes. Self-employed individuals pay both the employee and employer portions — 11.90% for CPP1 and 8% for CPP2. The maximum total self-employed contribution in 2026 is $9,292.90.

CPP Contribution Rates 2026 | CPP & CPP2 Maximum Contributions

CPP Contribution Rates 2026

Key Numbers at a Glance

Detail	2026 Amount
Maximum pensionable earnings (YMPE)	$74,600
Second earnings ceiling (YAMPE)	$85,000
Basic exemption	$3,500
CPP1 employee/employer rate	5.95%
CPP2 employee/employer rate	4.00%
Max employee CPP1 contribution	$4,230.45
Max employee CPP2 contribution	$416.00
Max total employee contribution	$4,646.45

CPP1 — First Component

CPP1 applies to earnings between the basic exemption ($3,500) and the first earnings ceiling (YMPE).

Who Pays	Rate	Maximum Annual Contribution
Employee	5.95%	$4,230.45
Employer	5.95%	$4,230.45
Self-employed	11.90%	$8,460.90

Calculation: ($74,600 − $3,500) × 5.95% = $71,100 × 5.95% = $4,230.45

CPP2 — Second Component (Enhancement)

CPP2 applies to earnings between the first ceiling (YMPE) and the second ceiling (YAMPE). There is no basic exemption for CPP2.

Who Pays	Rate	Maximum Annual Contribution
Employee	4.00%	$416.00
Employer	4.00%	$416.00
Self-employed	8.00%	$832.00

Calculation: ($85,000 − $74,600) × 4% = $10,400 × 4% = $416.00

Total Maximum Contributions 2026

Contributor	CPP1	CPP2	Total
Employee	$4,230.45	$416.00	$4,646.45
Employer	$4,230.45	$416.00	$4,646.45
Self-employed	$8,460.90	$832.00	$9,292.90

CPP Contribution Rate History

Year	YMPE	YAMPE	CPP1 Rate	CPP2 Rate	Max Employee (Total)
2026	$74,600	$85,000	5.95%	4.00%	$4,646.45
2025	$71,300	$81,200	5.95%	4.00%	$4,430.10
2024	$68,500	$73,200	5.95%	4.00%	$4,055.50
2023	$66,600	—	5.95%	—	$3,754.45
2022	$64,900	—	5.70%	—	$3,499.80
2021	$61,600	—	5.45%	—	$3,166.45
2020	$58,700	—	5.25%	—	$2,898.00

CPP2 Phase-In Timeline

CPP2 is being phased in from 2024-2025:

Year	CPP2 Employee Rate	Status
2023	N/A	Not yet introduced
2024	4.00%	First year
2025	4.00%	Full rate
2026	4.00%	Full rate

Who pays CPP?

Situation	CPP Required?
Employee age 18-64	Mandatory
Employee age 65-70	Optional (can elect to stop)
Self-employed age 18-64	Mandatory
Under age 18	No CPP contributions
Over age 70	No CPP contributions

Impact on your paycheque

Monthly CPP deductions by salary (2026)

Annual Salary	Monthly CPP1	Monthly CPP2	Total Monthly
$40,000	$181.23	$0.00	$181.23
$55,000	$255.62	$0.00	$255.62
$70,000	$330.01	$0.00	$330.01
$74,600	$352.54	$0.00	$352.54
$80,000	$352.54	$18.00	$370.54
$90,000+	$352.54	$34.67	$387.21