# CPP, CPP2 and EI contributions 2026

> In 2026 employees pay 5.95% CPP on earnings between $3,500 and $74,600 (maximum $4,230.45), 4% CPP2 on earnings between $74,600 and $85,000 (maximum $416.00) and 1.63% EI on earnings up to $68,900 (maximum $1,123.07).

## Key facts
- Maximum employee CPP contribution 2026: $4,230.45.
- Maximum employee CPP2 contribution 2026: $416.00.
- Maximum employee EI premium 2026: $1,123.07 (outside Quebec).
- Employers match CPP and CPP2 and pay 1.4 times the employee EI premium.

|  | Rate | Earnings range | Employee maximum |
| --- | --- | --- | --- |
| CPP (base + first enhancement) | 5.95% | $3,500 – $74,600 | $4,230.45 |
| CPP2 (second enhancement) | 4% | $74,600 – $85,000 | $416.00 |
| EI | 1.63% | up to $68,900 | $1,123.07 |

## How much you contribute by salary

| Salary | CPP | CPP2 | EI | Total |
| --- | --- | --- | --- | --- |
| $30,000 | $1,576.75 | $0.00 | $489.00 | $2,065.75 |
| $50,000 | $2,766.75 | $0.00 | $815.00 | $3,581.75 |
| $70,000 | $3,956.75 | $0.00 | $1,123.07 | $5,079.82 |
| $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 |

## How CPP contributions affect your tax

The base part of CPP (4.95% of the 5.95%) gives a non-refundable tax credit at the lowest federal and provincial rates. The enhanced part (the remaining 1% and all of CPP2) is deducted from your income, so it saves tax at your marginal rate. EI premiums also give a non-refundable credit.

## Quebec

Quebec employees contribute to the Quebec Pension Plan (QPP) instead of the CPP, pay Quebec Parental Insurance Plan (QPIP) premiums and pay a lower EI rate (1.30% in 2026). This site does not cover Quebec.

- [Take-home pay calculator](https://www.takehomeclear.com)
- [Tax brackets 2026](https://www.takehomeclear.com/tax-brackets)

## Frequently asked questions
### What is the maximum CPP contribution for 2026?
$4,230.45 for employees, plus up to $416.00 of CPP2: $4,646.45 in total.

### What is the YMPE for 2026?
$74,600. The second ceiling (YAMPE) used for CPP2 is $85,000.

### What is the EI rate for 2026?
1.63% of insurable earnings up to $68,900, for a maximum of $1,123.07. In Quebec the rate is 1.30%.

## Official sources
- [Current year tax rates and income brackets, 2026 (Canada Revenue Agency)](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html)
- [T4127 Payroll Deductions Formulas, 123rd edition, July 1, 2026 (CRA)](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jul/t4127-jul-payroll-deductions-formulas.html)
- [T4032 Payroll Deductions Tables 2026 (CRA)](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables.html)
- [CPP contribution rates, maximums and exemptions (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html)
- [Second additional CPP (CPP2) contribution rates and maximums (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/making-deductions/second-additional-cpp-contribution-rates-maximums.html)
- [EI premium rates and maximums (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html)
- [Ontario Health Premium (Government of Ontario)](https://www.ontario.ca/page/health-premium)

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TakeHomeClear · Updated on 2026-10-22 · https://www.takehomeclear.com/cpp-ei