Three payroll deductions have a yearly cap in Canada: Canada Pension Plan (CPP) contributions, second additional CPP contributions (CPP2) and Employment Insurance (EI) premiums. The table below shows every 2026 maximum for employees, employers and self-employed people. It is drawn straight from the Canada Revenue Agency (CRA) tables. This page explains the rules; it is not tax or payroll advice, and your own pay stubs, T4 slip and CRA My Account show what was actually deducted from your pay.
How to read this table: Each row is one deduction. The rate applies to the earnings band shown; the maximum is the most one employee, one employer or one self-employed person pays in 2026.
| Deduction | Earnings it applies to | Employee rate | Max employee | Max employer | Max self-employed |
|---|---|---|---|---|---|
| CPP (base + first additional) | $3,500 to $74,600 | 5.95% | $4,230.45 | $4,230.45 | $8,460.90 |
| CPP2 (second additional) | $74,600 to $85,000 | 4% | $416 | $416 | $832 |
| EI premiums (outside Quebec) | Up to $68,900 | 1.63% | $1,123.07 | $1,572.30 | Only if opted in |
| EI premiums (Quebec) | Up to $68,900 | 1.3% | $895.70 | $1,253.98 | Only if opted in |
Source: CPP contribution rates, maximums and exemptions — Canada.ca (all-years table, 2022 to 2026); Second additional CPP contribution (CPP2) rates and maximums — Canada.ca; Canada Pension Plan (CPP) and the CPP enhancement — Canada.ca (self-employed rates); EI premium rates and maximums — Canada.ca (federal table, 2022 to 2027); EI premium rates and maximums — Canada.ca (Quebec table, 2022 to 2027); EI premium rates and maximums — Canada.ca (employer premium multiplier); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for workers and employers); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for self-employed workers). In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.
Added together, the most an employee outside Quebec can have deducted for CPP, CPP2 and EI in 2026 is $5,769.52, at any salary of $85,000 or more.
What are the 2026 CPP and EI earnings limits?
The maximums come from four earnings figures that the CRA publishes each year. CPP is charged on earnings above a basic exemption and below the Year’s Maximum Pensionable Earnings (YMPE). CPP2 is charged between the YMPE and the Year’s Additional Maximum Pensionable Earnings (YAMPE). EI is charged on insurable earnings up to a separate, lower ceiling.
| Limit | 2026 amount | What it does |
|---|---|---|
| Year's basic exemption | $3,500 | No CPP is charged on the first $3,500 of yearly earnings |
| YMPE (first earnings ceiling) | $74,600 | CPP at 5.95% stops at this level of earnings |
| Maximum contributory earnings | $71,100 | YMPE minus the basic exemption: the earnings CPP is charged on |
| YAMPE (second earnings ceiling) | $85,000 | CPP2 at 4% applies between the YMPE and this level |
| EI maximum insurable earnings | $68,900 | EI premiums stop at this level of earnings |
Source: CPP contribution rates, maximums and exemptions — Canada.ca (all-years table, 2022 to 2026); Second additional CPP contribution (CPP2) rates and maximums — Canada.ca; Canada Pension Plan (CPP) and the CPP enhancement — Canada.ca (self-employed rates); EI premium rates and maximums — Canada.ca (federal table, 2022 to 2027); EI premium rates and maximums — Canada.ca (Quebec table, 2022 to 2027); EI premium rates and maximums — Canada.ca (employer premium multiplier); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for workers and employers); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for self-employed workers). In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.
The basic exemption is $3,500 in every year from 2022 to 2026, while the YMPE has gone up every year. The YAMPE was set about 7% above the YMPE in 2024, its first year, and is about 14% above it from 2025 on.
What is the maximum CPP contribution for 2026?
The maximum employee CPP contribution for 2026 is $4,230.45. The contribution rate is 5.95% of pensionable earnings between $3,500 and $74,600. That is $71,100 of contributory earnings, and 5.95% of $71,100 gives the maximum. The 5.95% combines the base CPP rate of 4.95% with the first additional rate of 1% that was phased in from 2019 to 2023 under the CPP enhancement.
Pensionable earnings include salary and wages, commissions, bonuses, most taxable benefits, honorariums and certain tips. Your employer matches every dollar, so the CPP account receives up to $8,460.90 for a worker who reaches the YMPE. That is the same total a self-employed person pays alone.
What is CPP2, and how much is it in 2026?
CPP2 is the second additional CPP contribution, charged on earnings above the YMPE. It started on January 1, 2024 as the last stage of the CPP enhancement. In 2026 it applies to the $10,400 slice of earnings between $74,600 and $85,000.
- Employees: 4% of earnings in that slice, to a maximum of $416.
- Employers: the same 4%, matching the employee to a maximum of $416.
- Self-employed: 8% of net self-employment earnings in that slice, to a maximum of $832.
CPP2 is not an extra tax with nothing attached. Contributions to the enhancement, including CPP2, raise the CPP retirement pension, post-retirement benefit, disability pension and survivor’s pension that the contributor eventually receives. If your earnings are $74,600 or less, CPP2 does not apply to you at all.
What is the maximum EI premium for 2026?
The maximum employee EI premium for 2026 is $1,123.07, from a rate of 1.63% on insurable earnings up to $68,900. The employer pays 1.4 times the employee premium, up to $1,572.30 per employee. In Quebec the employee rate is 1.3% and the maximum is $895.70, with an employer maximum of $1,253.98. The Quebec rate is lower because the province pays maternity, paternity, parental and adoption benefits itself through the Québec Parental Insurance Plan (QPIP), which has its own premium.
The EI ceiling also caps EI benefits: for most people, benefits are 55% of average insurable weekly earnings, to a maximum of $729 a week in 2026. Unlike CPP, EI has no basic exemption and no age limit, so premiums start with the first dollar of insurable earnings.
How much CPP, CPP2 and EI will you pay at your salary?
The table works through the 2026 employee deductions for five example salaries outside Quebec. The salaries are examples; the rates and ceilings are the official 2026 figures above.
| Salary | CPP (5.95%) | CPP2 (4%) | EI (1.63%) | Total for the year |
|---|---|---|---|---|
| $50,000 | $2,766.75 | none | $815.00 | $3,581.75 |
| $60,000 | $3,361.75 | none | $978.00 | $4,339.75 |
| $74,600 | $4,230.45 | none | $1,123.07 | $5,353.52 |
| $80,000 | $4,230.45 | $216.00 | $1,123.07 | $5,569.52 |
| $100,000 | $4,230.45 | $416.00 | $1,123.07 | $5,769.52 |
Two things stand out. Between $68,900 and $74,600, EI has already stopped but CPP has not, so each extra dollar still costs 5.95%. And above $85,000, none of the three deductions grows any further. Income tax is separate and is not in this table; the 2026 federal and provincial tax brackets show the rates, and the Canadian income tax guide covers credits and deductions.
When do CPP and EI deductions stop during the year?
Deductions stop on the pay where your running total for the year reaches each maximum. For people on a steady salary above $85,000, that usually happens in the last few months of the year, and take-home pay jumps for the remaining pays. The example below follows a salary of $100,000 paid every two weeks (26 pays) through 2026. It is approximate: payroll software applies the CRA’s exact per-pay formulas and can differ by a few cents.
| Pay periods | CPP per pay | CPP2 per pay | EI per pay |
|---|---|---|---|
| 1 to 17 | $220.84 | none | $62.69 |
| 18 | $220.84 | none | $57.34 |
| 19 | $220.84 | none | none |
| 20 | $34.49 | $92.92 | none |
| 21 and 22 | none | $153.85 | none |
| 23 | none | $15.38 | none |
| 24 to 26 | none | none | none |
In this example the three deductions take about $283.53 from each pay for most of the year, then nothing for the last three pays of 2026. Everything restarts with the first pay of January, when the new year’s maximums apply.
What if you have two jobs or change jobs in the year?
Each employer deducts CPP, CPP2 and EI up to the yearly maximum for the job with that employer, and does not know what any other employer deducted. Someone who changes jobs mid-year, or holds two jobs at once, can therefore pay more than the yearly maximum in total. The extra is not lost. When you file your return, Schedule 8 works out any CPP overpayment, which goes on line 44800, and any EI overpayment goes on line 45000. The CRA then refunds the excess or applies it to tax owing, though an EI difference of $1 or less may not be refunded. If this is your first Canadian tax return, tax software fills these lines in from your T4 slips.
How much CPP do self-employed people pay in 2026?
Self-employed people pay both the employee and the employer share, because there is no employer to match them. Anyone with more than $3,500 of net self-employment income contributes. The 2026 self-employed rate is 11.9% on net earnings between $3,500 and $74,600, to a maximum of $8,460.90, plus CPP2 of 8% between $74,600 and $85,000, to a maximum of $832. Together that is up to $9,292.90 for 2026.
The amount is calculated on Schedule 8 of the income tax return and paid with the tax owing, so the whole year’s CPP comes due at once rather than a little from each pay. For example, $40,000 of net self-employment income means $4,343.50 of CPP. EI is optional for the self-employed: those who sign up for the EI special benefits program pay the employee rate on their self-employment earnings, with no employer share.
Who has to contribute to CPP, and who doesn’t?
Age, disability and the province where you work decide whether CPP is deducted. The rules below come from the CRA’s payroll guidance.
| Situation | CPP and CPP2 | EI |
|---|---|---|
| Employee aged 18 to 69 | Deducted, even if already receiving a CPP or QPP retirement pension | Deducted on insurable earnings |
| Turns 18 during the year | Starts the month after the 18th birthday; the maximum is prorated | No age limit |
| Aged 65 to 69 and receiving a CPP or QPP pension | Can stop by giving the employer Form CPT30 (not for work in Quebec) | Still deducted |
| Turns 70 during the year | Stops after the month of the 70th birthday; the maximum is prorated | Still deducted |
| Considered disabled under the CPP or QPP | Not deducted | Still deducted |
| Province of employment is Quebec | QPP and QPP2 instead of CPP and CPP2 | Quebec EI rate plus QPIP |
| Self-employed | Both shares, on the tax return, if net income is more than $3,500 | Only if opted in |
Anyone who gets a CPP retirement pension and keeps working before 70 keeps building the post-retirement benefit with those contributions. Weighing when to start the pension is covered in taking CPP at 60, 65 or 70.
How is Quebec different? QPP and QPP2 in 2026
Workers whose province of employment is Quebec pay the Quebec Pension Plan instead of CPP, wherever they live. Retraite Québec uses the same $3,500 exemption and the same $74,600 and $85,000 ceilings. However, the QPP base rate is 5.3%, not 4.95%.
| Part of the QPP | Earnings it applies to | Worker rate | Max worker | Self-employed rate | Max self-employed |
|---|---|---|---|---|---|
| QPP base plan | $3,500 to $74,600 | 5.3% | $3,768.30 | 10.6% | $7,536.60 |
| QPP first additional plan | $3,500 to $74,600 | 1% | $711.00 | 2% | $1,422.00 |
| QPP2 (second additional plan) | $74,600 to $85,000 | 4% | $416 | 8% | $832 |
Source: CPP contribution rates, maximums and exemptions — Canada.ca (all-years table, 2022 to 2026); Second additional CPP contribution (CPP2) rates and maximums — Canada.ca; Canada Pension Plan (CPP) and the CPP enhancement — Canada.ca (self-employed rates); EI premium rates and maximums — Canada.ca (federal table, 2022 to 2027); EI premium rates and maximums — Canada.ca (Quebec table, 2022 to 2027); EI premium rates and maximums — Canada.ca (employer premium multiplier); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for workers and employers); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for self-employed workers). In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.
A Quebec worker earning $100,000 therefore pays up to $4,479.30 of QPP, $416 of QPP2 and $895.70 of EI, or $5,791.00 before the separate QPIP premium. Quebec residents who work in another province pay CPP, and Quebec residents claim any excess QPP contributions on their Revenu Québec return rather than on line 44800.
Are CPP and EI contributions tax-deductible?
CPP contributions reduce your tax in two ways. The enhanced part, meaning the first additional 1% and all of CPP2, is a deduction from income on line 22215. The base 4.95% is claimed on line 30800 as a non-refundable tax credit, and EI premiums on line 31200 are a credit as well. Self-employed people use line 22200 for the deduction and line 31000 for the base-contribution credit, both worked out on Schedule 8. Because the enhanced part is a deduction, it lowers net income, much like an RRSP contribution does; the RRSP contribution limit guide explains how earned income sets that separate room.
CPP and EI maximums by year, 2022 to 2027
Searches for last year’s figures are common at tax time, so the CRA’s history is below. The 2027 CPP figures were not posted when this page was checked.
| Year | YMPE | YAMPE | Employee rate | Max CPP (employee) | Max CPP2 (employee) | Max CPP (self-employed) |
|---|---|---|---|---|---|---|
| 2027 | Not posted yet | Not posted yet | See 2027 section | Not posted yet | Not posted yet | Not posted yet |
| 2026 | $74,600 | $85,000 | 5.95% | $4,230.45 | $416 | $8,460.90 |
| 2025 | $71,300 | $81,200 | 5.95% | $4,034.10 | $396 | $8,068.20 |
| 2024 | $68,500 | $73,200 | 5.95% | $3,867.50 | $188 | $7,735.00 |
| 2023 | $66,600 | — | 5.95% | $3,754.45 | — | $7,508.90 |
| 2022 | $64,900 | — | 5.7% | $3,499.80 | — | $6,999.60 |
Source: CPP contribution rates, maximums and exemptions — Canada.ca (all-years table, 2022 to 2026); Second additional CPP contribution (CPP2) rates and maximums — Canada.ca; Canada Pension Plan (CPP) and the CPP enhancement — Canada.ca (self-employed rates); EI premium rates and maximums — Canada.ca (federal table, 2022 to 2027); EI premium rates and maximums — Canada.ca (Quebec table, 2022 to 2027); EI premium rates and maximums — Canada.ca (employer premium multiplier); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for workers and employers); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for self-employed workers). In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.
| Year | Max insurable earnings | Rate | Max employee premium | Max employer premium | Quebec rate | Quebec max employee |
|---|---|---|---|---|---|---|
| 2027 | $70,800 | 1.64% | $1,161.12 | $1,625.57 | 1.29% | $913.32 |
| 2026 | $68,900 | 1.63% | $1,123.07 | $1,572.30 | 1.3% | $895.70 |
| 2025 | $65,700 | 1.64% | $1,077.48 | $1,508.47 | 1.31% | $860.67 |
| 2024 | $63,200 | 1.66% | $1,049.12 | $1,468.77 | 1.32% | $834.24 |
| 2023 | $61,500 | 1.63% | $1,002.45 | $1,403.43 | 1.27% | $781.05 |
| 2022 | $60,300 | 1.58% | $952.74 | $1,333.84 | 1.2% | $723.60 |
Source: CPP contribution rates, maximums and exemptions — Canada.ca (all-years table, 2022 to 2026); Second additional CPP contribution (CPP2) rates and maximums — Canada.ca; Canada Pension Plan (CPP) and the CPP enhancement — Canada.ca (self-employed rates); EI premium rates and maximums — Canada.ca (federal table, 2022 to 2027); EI premium rates and maximums — Canada.ca (Quebec table, 2022 to 2027); EI premium rates and maximums — Canada.ca (employer premium multiplier); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for workers and employers); 2026 Benefit Amounts and Key Data — Retraite Québec (QPP maximums for self-employed workers). In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.
What changes in 2027?
Part of 2027 is already known. The EI maximum insurable earnings rise to $70,800 and the rate to 1.64%, so the maximum employee premium becomes $1,161.12, or $38.05 more than in 2026. In Quebec the 2027 maximum is $913.32.
For CPP, the CRA had not posted the 2027 YMPE, YAMPE or maximums as of September 29, 2026. Its pages carrying the 2026 figures were dated October 31, 2025, so the 2027 table is likely to appear in the fall. Separately, on April 28, 2026 the Government of Canada announced its intention to lower the base CPP rate from 9.9% to 9.5% combined, starting January 1, 2027. That is 4.95% to 4.75% each for employees and employers, and the first and second additional rates stay the same. On the same earnings, a 0.2-point cut would save an employee about $142.20 a year. The real 2027 figure depends on the new YMPE, and this page will be updated when the CRA publishes it.
Common mistakes with CPP and EI maximums
- Treating the maximum as a flat fee. Most workers never reach it. Contributions are a percentage of earnings, so someone earning $50,000 pays well under the maximum.
- Assuming CPP2 applies to everyone. Only earnings above $74,600 in 2026 attract CPP2.
- Forgetting the employer half when self-employed. Freelancers and sole proprietors owe 11.9%, not 5.95%, and it comes due with the tax return.
- Expecting payroll to fix a two-job overpayment. Employers cannot see each other’s deductions; the refund only comes through the tax return.
- Using CPP numbers for a Quebec job. Work in Quebec means QPP rates, a lower EI rate and QPIP premiums.
- Reading a bigger fall paycheque as a raise. It is usually CPP and EI hitting their maximums; deductions restart in January.
Where can you check your own contributions?
Your pay stubs show year-to-date CPP, CPP2 and EI deductions, and your T4 slip shows the totals and your pensionable and insurable earnings. CRA My Account lists your T4 slips. My Service Canada Account shows your CPP contribution history and an estimate of your future pension. If a T4 looks wrong, ask your employer first; if that doesn’t resolve it, contact the CRA.
How do these contributions turn into a pension?
Every year of CPP and CPP2 contributions adds to the retirement pension paid later. To see what your contributions could be worth, use the OAS, CPP and GIS planner, then read how to apply for CPP when retirement gets close. Once the pension starts, the CPP and OAS payment dates show when each monthly deposit arrives. For the tax side of a working year, Canadian tax optimization strategies covers other ways to lower the bill.