2026 Canada Pension Plan (CPP) Maximum Pensionable Earnings
The Canada Revenue Agency has announced higher Canada Pension Plan (CPP) maximum pensionable earnings and updated maximum contributions for 2026. These changes affect how much CPP employers, employees, and self‑employed individuals contribute starting January 1, 2026.
2026 CPP maximum pensionable earnings (YMPE & YAMPE)
For 2026, there are now two CPP earnings ceilings under the enhanced CPP system.
Year’s Maximum Pensionable Earnings (YMPE): increases to $74,600 (from $71,300 in 2025)
Year’s Additional Maximum Pensionable Earnings (YAMPE): increases to $85,000 (from $81,200 in 2025)
Basic exemption: remains $3,500
CPP contributions are calculated on employment income above the basic exemption and up to the relevant earnings ceiling(s).
2026 CPP contribution rates and maximums
The base CPP contribution rate remains unchanged, while the second additional CPP (CPP2) continues to apply to higher earners.
Employee and employer base CPP rate (up to YMPE): 5.95% each
Maximum base CPP contribution (employee): $4,230.45
Maximum base CPP contribution (employer): $4,230.45
CPP2 rate on earnings between YMPE and YAMPE: 4.00% (employee and employer)
Maximum CPP2 contribution (employee): $416.00
Maximum CPP2 contribution (employer): $416.00
Self‑employed individuals contribute both employee and employer portions and therefore pay up to twice the maximums shown above.
CPP maximums 2024–2026
You can use this table to quickly compare CPP limits across the last three years.
| Year | YMPE (base CPP ceiling) | YAMPE (CPP2 ceiling) | Basic exemption | Base CPP rate (employee/employer) | Max base CPP (employee) | Max base CPP (employer) | CPP2 rate (employee/employer) | Max CPP2 (employee) | Max CPP2 (employer) | Total CPP (employee) | Total CPP (employer) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | $74,600 | $85,000 | $3,500 | 5.95% | $4,230.45 | $4,230.45 | 4.00% | $416.00 | $416.00 | $4,646.45 | $4,646.45 |
| 2025 | $71,300 | $81,200 | $3,500 | 5.95% | $4,034.10 | $4,034.10 | 4.00% | $396.00 | $396.00 | $4,430.10 | $4,430.10 |
| 2024 | $68,500 | $73,200 | $3,500 | 5.95% | $3,867.50 | $3,867.50 | 4.00% | $188.00 | $188.00 | $4,055.50 | $4,055.50 |
What the 2026 CPP changes mean for you
Employees: Higher CPP ceilings mean slightly more CPP deducted from pay for those earning at or above the new limits, but they also build a larger CPP pension over time.
Employers: Payroll costs rise modestly as employer CPP contributions increase, so payroll settings should be updated before the first 2026 pay run.
Self‑employed: Because both the employee and employer shares are paid, it is especially important to budget for the higher 2026 maximum CPP contributions.
This posting is for personal educational purposes only and does not constitute tax or legal advice. Please consult your tax advisor or payroll professional for guidance tailored to your specific situation.