Checked 15 October 2026. What was checked. How these pages are maintained.
How CPP is estimated (2026)
No CPP on the first $3,500. Base CPP (including the first additional contribution) is 5.95% for the employee on earnings from $3,500 up to the Year's Maximum Pensionable Earnings (YMPE) of $74,600. CPP2 is 4% on earnings between $74,600 and the Year's Additional Maximum Pensionable Earnings (YAMPE) of $85,000. The employer matches both. Self-employed people pay both halves (11.90% and 8%).
Maximum employee CPP in 2026 is $4,230.45 + $416.00 = $4,646.45. This page does not calculate QPP or retirement benefits.
Worked example
On $60,000 of pensionable earnings in 2026: CPP applies above $3,500, so $56,500 × 5.95% = $3,361.75 employee. The employer matches. At $80,000 you also pay CPP2: 4% × ($80,000 − $74,600) = $216, plus the full base amount up to YMPE.
Maximum employee CPP + CPP2 in 2026 is $4,646.45. Self-employed people pay both halves. Quebec uses QPP, not these exact figures. This is a contribution estimate, not a retirement-benefit forecast.
The first $3,500 is exempt
Base CPP for 2026, the employee half, is 5.95 percent of pensionable earnings between $3,500 and the Year’s Maximum Pensionable Earnings of $74,600. On $40,000 the slice that is charged is 40,000 − 3,500 = $36,500, and 36,500 × 0.0595 = $2,171.75. There is no CPP2, because CPP2 starts only after $74,600. The employer matches the $2,171.75. It is not extra tax on the worker. Self-employed people pay both halves, so the same earnings are $4,343.50 on this page.
At $90,000 the base slice is capped: 74,600 − 3,500 = $71,100, and 71,100 × 0.0595 = $4,230.45. CPP2 is 4 percent of the band from $74,600 up to the Year’s Additional Maximum Pensionable Earnings of $85,000. That band is $10,400, and 4 percent is $416.00. Earnings above $85,000 do not raise either contribution. Employee CPP plus CPP2 at the cap is $4,646.45. The employer matches both.
Quebec and the pension this is not
Quebec runs the QPP. The shape is similar and the figures are not these ones. Do not use this page for a Quebec payroll. The result is a contribution estimate for a T4-style year, not a forecast of the CPP retirement pension you will draw. A workplace pension adjustment affects RRSP room. It does not change the CPP formula on this page. Rates and ceilings were checked against Canada.ca for 2026: basic exemption $3,500, YMPE $74,600, YAMPE $85,000, 5.95 percent, and CPP2 at 4 percent.
Where this sits on a paycheque
5.95 percent is not 5.95 percent of the cheque. A paycheque is not the hourly rate times the hours subtracts the $3,500 exemption first.
Common questions
What is CPP2?
A second contribution on higher earnings, between YMPE and YAMPE. It started in 2024 and is meant to raise future benefits on that slice of pay.
I work in Quebec?
Use QPP rates from Revenu Québec. They are similar but not the same numbers.
Does this include tax?
No. CPP is a contribution, not income tax. Your T4 boxes are separate.