The Canada Pension Plan (CPP) contribution limits increase every year based on average wage growth. Here are the confirmed 2026 numbers and what they mean for your paycheque.
2026 CPP Earnings Limits
- YMPE (Year's Maximum Pensionable Earnings): $74,600 (up from $71,300 in 2025)
- YAMPE (Year's Additional Maximum Pensionable Earnings): $85,000 (up from $81,200 in 2025)
- Basic exemption: $3,500 (unchanged — this amount has not been indexed since CPP began)
CPP1 (Base CPP) — 2026
CPP1 is calculated on earnings between the $3,500 exemption and the YMPE of $74,600.
| Rate | Maximum | |
|---|---|---|
| Employee | 5.95% | $4,230.45 |
| Employer | 5.95% | $4,230.45 |
| Self-employed (both portions) | 11.9% | $8,460.90 |
Formula: ($74,600 − $3,500) × 5.95% = $4,230.45 (employee maximum)
CPP2 (Second Additional CPP) — 2026
CPP2 applies only to earnings between the YMPE ($74,600) and the YAMPE ($85,000) — a $10,400 band.
| Rate | Maximum | |
|---|---|---|
| Employee | 4% | $416 |
| Employer | 4% | $416 |
| Self-employed (both portions) | 8% | $832 |
⚠️ Combined maximum for 2026: An employee earning $85,000 or more will contribute up to $4,646.45 total (CPP1 + CPP2). A self-employed person at the same income pays up to $9,292.90 — both portions combined.
YMPE $74,600
Ceiling for base CPP contributions in 2026
YAMPE $85,000
Ceiling for CPP2 contributions in 2026
$4,646.45
Maximum employee CPP contribution (CPP1 + CPP2)
$9,292.90
Maximum self-employed CPP contribution
How CPP Is Deducted
If you're an employee, your employer deducts CPP automatically from every paycheque and matches your contribution. If you're self-employed, you pay both halves yourself when you file your T1 — see our self-employed tax guide for the full breakdown.
Working While Collecting CPP
If you're between 65 and 70, working, and already receiving your CPP retirement pension, you can elect to stop contributing using CRA Form CPT30. If you continue contributing, those contributions go toward a Post-Retirement Benefit (PRB), which increases your future CPP income.
✅ Note: Quebec residents contribute to the QPP (Quebec Pension Plan) instead of CPP, which uses similar but not identical rates and thresholds.
See Your Exact CPP Deduction
Smart Canada Tax's personal tax calculator automatically applies 2026 CPP, CPP2, and EI rates to your income — free, offline, no account needed.
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