June 5, 2026
2026 CPP & EI Rates, Maximums & Paycheque Impact
2026 CPP1 and CPP2 rates, the YMPE and YAMPE ceilings, maximum contributions, the lower EI premium, and how Quebec differs with QPP and QPIP.
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Calculate CPP (5.95% to YMPE) and EI (1.63%) contributions per year
Canada Pension Plan (CPP) and Employment Insurance (EI) contributions come off virtually every paycheque in Canada. For 2026, the Canada Revenue Agency raised the pensionable earnings ceilings while the EI premium rate edged down. Here is the full picture for employees, employers, and the self-employed.
CPP1 — The Base Canada Pension Plan
CPP1 applies to earnings between the basic exemption and the Year’s Maximum Pensionable Earnings (YMPE).
| 2026 figure | Amount |
|---|---|
| YMPE (first ceiling) | $74,600 |
| Basic exemption | $3,500 |
| Employee/employer rate | 5.95% |
| Maximum employee contribution | $4,230.45 |
| Maximum employer contribution | $4,230.45 |
| Maximum self-employed contribution | $8,460.90 |
The YMPE rose from $71,300 in 2025 to $74,600 in 2026. Because the basic $3,500 exemption is unchanged, the maximum base contribution climbed to $4,230.45 per side.
Self-employed workers pay both the employee and employer share, so the maximum base CPP1 contribution is double, at $8,460.90.
CPP2 — The Second Tier
Since 2024, a second earnings band — between the YMPE and the Year’s Additional Maximum Pensionable Earnings (YAMPE) — carries an extra 4% contribution called CPP2.
| 2026 figure | Amount |
|---|---|
| YAMPE (second ceiling) | $85,000 |
| CPP2 rate (employee/employer) | 4.00% |
| Earnings band for CPP2 | $74,600 – $85,000 |
| Maximum employee CPP2 | $416.00 |
| Maximum employer CPP2 | $416.00 |
| Maximum self-employed CPP2 | $832.00 |
CPP2 only affects earnings above the YMPE. If you earn $74,600 or less, you pay no CPP2. The maximum extra contribution for an employee earning $85,000 or more is $416.00 in 2026, with the employer matching it. See CPP2 Enhancement: The Second Tier Explained for the longer breakdown.
EI — The Premium Edges Down
| 2026 figure | Amount (outside Quebec) |
|---|---|
| Maximum insurable earnings (MIE) | $68,900 |
| Employee premium rate | 1.63% ($1.63 per $100) |
| Maximum employee premium | $1,123.07 |
| Employer rate (1.4×) | 2.28% |
| Maximum employer premium | $1,572.30 |
The MIE held at $68,900, but the employee rate dropped one cent to $1.63 per $100 of insurable earnings, trimming the maximum annual employee premium slightly compared with 2025. Employers pay 1.4 times the employee rate.
Worked Example — $90,000 Salary (Ontario)
An employee earning $90,000 in 2026 hits every ceiling:
- CPP1: ($74,600 − $3,500) × 5.95% = $4,230.45
- CPP2: ($85,000 − $74,600) × 4.00% = $416.00
- EI: $68,900 × 1.63% = $1,123.07
- Total payroll deductions: $4,230.45 + $416.00 + $1,123.07 = $5,769.52
That is before any federal or provincial income tax. The employer pays a matching $4,646.45 in CPP plus $1,572.30 in EI.
Quebec — QPP and QPIP Instead
Quebec runs its own programs, which change the numbers:
- QPP (Quebec Pension Plan) replaces CPP. The base QPP rate is 6.40% (vs 5.95% federally), on the same $74,600 YMPE. QPP2 mirrors CPP2 at 4% up to the $85,000 YAMPE.
- EI is lower in Quebec — the 2026 employee rate is $1.30 per $100, with a maximum employee premium of $895.70, because Quebec funds its own parental benefits.
- QPIP (Quebec Parental Insurance Plan) is the separate program that covers maternity, paternity, parental, and adoption leave. Quebec workers pay a QPIP premium on top of EI.
So a Quebec employee pays a higher pension contribution (QPP) but a lower EI premium, plus a QPIP premium that workers in the rest of Canada do not.
Why the Ceilings Keep Rising
The YMPE and YAMPE are tied to growth in average Canadian wages. As wages rise, so do the ceilings — which means higher maximum contributions but also a larger eventual CPP retirement pension. The CPP enhancement (CPP1 plus CPP2) is gradually lifting the replacement rate from one-quarter to roughly one-third of pensionable earnings.
Key Takeaways
- 2026 ceilings rose: YMPE $74,600, YAMPE $85,000.
- Maximum CPP (base + CPP2) is $4,646.45 per side; self-employed pay double.
- EI premium dipped to 1.63%, maximum $1,123.07 outside Quebec.
- Quebec is different: higher QPP rate, lower EI, plus QPIP.
Run your own numbers — gross salary, province, and self-employed status all change the result — with the CPP & EI calculator.
Sources
Use our calculators to apply these concepts to your own income. Tax information is for general guidance only — consult a CPA for advice specific to your situation.
Tax rates and thresholds sourced from the Canada Revenue Agency (CRA). Last verified for the 2025 tax year.