CA Tax Tools

CPP & EI Maximums 2026

The official CRA contribution ceilings for Canada Pension Plan (CPP), the CPP2 second tier, and Employment Insurance (EI) premiums in 2026 — the most an employee, employer, or self-employed worker will pay for the year. To calculate your own deduction rather than the annual maximum, use the CPP & EI Calculator.

2026 key numbers at a glance

Max CPP1

$4,230.45

Max CPP2

$416.00

Max CPP total

$4,646.45

Max EI

$1,123.07

Max EI (Quebec)

$895.70

CPP (base / CPP1) maximums 2026

CPP1 applies at 5.95% on earnings between the basic exemption and the YMPE. Your employer matches your contribution dollar-for-dollar; if you are self-employed, you pay both shares.

Parameter 2026
Employee contribution rate 5.95%
Employer contribution rate 5.95% (matched)
Year's Maximum Pensionable Earnings (YMPE) $74,600
Basic exemption $3,500
Maximum employee CPP1 contribution $4,230.45
Maximum employer CPP1 contribution $4,230.45
Maximum self-employed CPP1 contribution (both shares) $8,460.90

Formula: 5.95% × ($74,600 − $3,500) = $4,230.45.

CPP2 (second-tier) maximums 2026

CPP2 has applied since 2024 at 4.00% on earnings between the YMPE and the YAMPE (Year's Additional Maximum Pensionable Earnings) — a second, higher ceiling. See the CPP2 Calculator for a full walkthrough.

Parameter 2026
CPP2 contribution rate 4.00%
Additional ceiling (YAMPE) $85,000
Maximum employee CPP2 contribution $416.00
Maximum self-employed CPP2 contribution (both shares) $832.00
Combined CPP1 + CPP2 ceiling (max total employee CPP) $4,646.45

Formula: 4.00% × ($85,000 − $74,600) = $416.00.

EI maximums 2026

EI premiums are capped at the Maximum Insurable Earnings (MIE). Employers pay 1.4× the employee premium. See the EI Benefits Calculator for what EI pays out, not just what you contribute.

Parameter 2026
Employee premium rate (rest of Canada) 1.63%
Employee premium rate (Quebec) 1.30%
Maximum Insurable Earnings (MIE) $68,900
Maximum employee EI premium (rest of Canada) $1,123.07
Maximum employee EI premium (Quebec) $895.70
Employer premium multiple 1.4×
Maximum employer EI premium (rest of Canada) $1,572.30
Maximum employer EI premium (Quebec) $1,253.98

Formula: 1.63% × $68,900 = $1,123.07. Self-employed workers do not pay EI premiums unless they opt in to the special benefits program.

Quebec: QPP & QPIP maximums 2026

Quebec runs its own retirement plan (QPP, Quebec Pension Plan) instead of CPP, uses the same YMPE/YAMPE ceilings, and adds a separate QPIP (Quebec Parental Insurance Plan) premium alongside a reduced EI rate.

Parameter 2026
QPP employee contribution rate (QPP1) 6.30%
Maximum employee QPP1 contribution $4,479.30
QPP2 rate (same second tier as CPP2) 4.00%
Combined QPP1 + QPP2 ceiling $4,895.30
QPIP employee premium rate 0.43%
QPIP Maximum Insurable Earnings $103,000
Maximum employee QPIP premium $442.90
Maximum employer QPIP premium (0.60%) $620.06
Maximum self-employed QPIP premium (0.76%) $786.92

A Quebec employee at or above every ceiling pays roughly $6,233.90 total in 2026 across QPP ($4,895.30), QPIP ($442.90), and the reduced Quebec EI rate ($895.70).

2025 vs 2026 comparison

All figures are official CRA / RQAP contribution rates and ceilings; maximums are computed from the rate × band so they always reconcile with the calculators above.

Parameter 2025 2026
YMPE $71,300 $74,600
YAMPE $81,200 $85,000
Max CPP1 $4,034.10 $4,230.45
Max CPP2 $396.00 $416.00
Max CPP total (CPP1+CPP2) $4,430.10 $4,646.45
EI Maximum Insurable Earnings $65,700 $68,900
Max EI premium (rest of Canada) $1,077.48 $1,123.07
Max EI premium (Quebec) $860.67 $895.70
Max QPP1 (Quebec) $4,339.20 $4,479.30
Max QPIP premium (Quebec) $484.12 $442.90

What happens when you hit the max mid-year

Deductions stop: once your year-to-date pensionable (for CPP/CPP2) or insurable (for EI) earnings reach the relevant ceiling, your employer's payroll system stops deducting that contribution for the rest of the calendar year. Your take-home pay rises for every remaining pay period, since the 5.95% (CPP1), 4.00% (CPP2), and 1.63% (EI) deductions disappear from your paycheque.

Multiple employers can over-contribute: each employer tracks the maximum independently, so if you changed jobs mid-year or worked more than one job at once, your combined CPP and/or EI deductions across employers can exceed the annual maximum even though no single employer over-withheld.

The excess comes back through your tax return: the CRA calculates any CPP or EI over-contribution automatically from your T4 slips when you file your T1 and adds it to your refund (or reduces your balance owing) — there is no separate form to submit.

Frequently asked questions

What is the maximum CPP contribution for 2026?

The maximum employee CPP contribution for 2026 is $4,646.45 — $4,230.45 of CPP1 (5.95% on earnings between the $3,500 basic exemption and the $74,600 YMPE) plus $416.00 of CPP2 (4.00% on earnings between the YMPE and the $85,000 YAMPE). Your employer matches this dollar-for-dollar; self-employed workers pay both shares, up to $9,292.90.

What is YMPE?

YMPE stands for Year's Maximum Pensionable Earnings — the CRA/CPP ceiling on which base CPP (CPP1) contributions are calculated. For 2026 the YMPE is $74,600, up from $71,300 in 2025. A second, higher ceiling — the YAMPE (Year's Additional Maximum Pensionable Earnings, $85,000 in 2026) — governs the CPP2 second-tier contribution introduced in 2024.

When do CPP contributions stop for the year?

Once your year-to-date pensionable earnings reach the YAMPE ($85,000 in 2026), both CPP1 and CPP2 deductions stop for the rest of the calendar year and your take-home pay rises. If you have only one employer, payroll software tracks this automatically. Separately, CPP contributions become optional between age 65 and 70 for anyone still working and collecting a CPP retirement pension, by filing Form CPT30.

Do I get CPP or EI over-contributions back?

Yes. If you worked for more than one employer in the year and your combined CPP and/or EI deductions exceeded the annual maximum, the excess is refunded automatically when you file your T1 tax return (CRA calculates it from your T4 slips — no separate application needed). This is common for people who changed jobs mid-year or held multiple jobs at once.

What is the maximum EI contribution for 2026?

The maximum employee EI premium for 2026 is $1,123.07 (1.63% on insurable earnings up to the $68,900 Maximum Insurable Earnings), or $895.70 for Quebec residents (1.30%, reduced because QPIP covers parental benefits). Employers pay 1.4× the employee premium — up to $1,572.30 per employee outside Quebec.

How does Quebec differ — QPP and QPIP instead of CPP and full EI?

Quebec residents contribute to the Quebec Pension Plan (QPP) instead of CPP — 6.30% in 2026 on the same $3,500–$74,600 band, for a maximum QPP1 contribution of $4,479.30 — plus the same 4.00% QPP2 second tier. They also pay a reduced EI rate (1.30%) and a separate QPIP (Quebec Parental Insurance Plan) premium of 0.43% up to $103,000 of insurable earnings, maxing at $442.90.

Related calculators

Sources

Last updated July 2026. CPP/CPP2/EI/QPP/QPIP figures verified against CRA and RQAP for 2025 and 2026.

Most searched navigate · open