Payroll deductions, 2026
CPP and EI contributions for 2026
How much Canada Pension Plan and Employment Insurance comes off your pay in 2026, where the maximums are, and what changes in 2027.
CPP takes 5.95% of pay between $3,500 and $74,600
You pay CPP on pay above the $3,500 basic exemption, up to the year's maximum pensionable earnings of $74,600 (up from $71,300 in 2025). The 5.95% is made up of the base rate of 4.95% and the first additional rate of 1.00%. The most you pay at 5.95% is $4,230.45: $3,519.45 base and $711.00 first additional. Your employer pays the same again. CRA: CPP contribution rates, maximums and exemptions.
CPP2 takes 4% of pay between $74,600 and $85,000
The second additional contribution, CPP2, is 4% of pay between $74,600 and the year's additional maximum pensionable earnings of $85,000. The most you pay is $416.00, and your employer matches it. Your total CPP can therefore be up to $4,646.45. ESDC: CPP maximum benefit amounts and related figures, 2026.
EI takes 1.63% of pay up to $68,900
Employment Insurance premiums outside Quebec are 1.63% of insurable earnings up to $68,900 (up from $65,700 in 2025, when the rate was 1.64%). The most you pay is $1,123.07. Your employer pays 1.4 times your premium, up to $1,572.30. CRA: EI premium rates and maximums.
Part of CPP lowers your taxable income; the rest gives a credit
Base CPP (4.95%) gives a non-refundable tax credit at the lowest rate, as EI does. The first additional CPP (1.00%) and CPP2 are deducted from your income before tax instead. On a $90,000 salary that means $1,127.00 comes off taxable income and $3,519.45 of base CPP earns a credit. CRA: The CPP enhancement, what it means for you; CRA: T4127 Payroll Deductions Formulas, 122nd edition (January 2026).
CPP and EI on common salaries
| Salary | CPP at 5.95% | CPP2 | EI | Total |
|---|---|---|---|---|
| $20,000 | $981.75 | None | $326.00 | $1,307.75 |
| $40,000 | $2,171.75 | None | $652.00 | $2,823.75 |
| $60,000 | $3,361.75 | None | $978.00 | $4,339.75 |
| $68,900 | $3,891.30 | None | $1,123.07 | $5,014.37 |
| $74,600 | $4,230.45 | None | $1,123.07 | $5,353.52 |
| $80,000 | $4,230.45 | $216.00 | $1,123.07 | $5,569.52 |
| $85,000 | $4,230.45 | $416.00 | $1,123.07 | $5,769.52 |
| $100,000 | $4,230.45 | $416.00 | $1,123.07 | $5,769.52 |
| $150,000 | $4,230.45 | $416.00 | $1,123.07 | $5,769.52 |
The same in every province and territory outside Quebec.
The base CPP rate falls to 4.75% in 2027
From 1 January 2027 the base CPP rate falls from 4.95% to 4.75% each for employees and employers (9.90% to 9.50% combined). The first additional 1.00% and CPP2's 4% do not change, so the employee rate on pay between the basic exemption and the maximum becomes 5.75%. The change is in Bill C-30, the Spring Economic Update 2026 Implementation Act, which passed in June 2026 (Finance Canada: Bill C-30 passes). The Chief Actuary's 33rd report found the 9.5% rate sufficient (OSFI: 33rd Actuarial Report on the Canada Pension Plan). This calculator covers 2026 only.
Self-employed people pay both halves
If you are self-employed you pay both the employee and employer shares: 11.90% up to $8,460.90, and CPP2 at 8% up to $832.00. This calculator is for employees. ESDC: CPP maximum benefit amounts and related figures, 2026.
On a pay stub, CPP and EI stop once you reach the maximum
CPP and EI are taken from every pay until you reach the yearly maximum, then stop. CPP2 starts only once your pay for the year passes $74,600. Each pay has its own share of the basic exemption: $3,500 ÷ 26 = $134.62 on a bi-weekly payroll. Why your pay stub differs.
Sources: CRA: CPP contribution rates, maximums and exemptions; ESDC: CPP maximum benefit amounts and related figures, 2026; CRA: EI premium rates and maximums; CRA: The CPP enhancement, what it means for you; Finance Canada: Bill C-30 passes; OSFI: 33rd Actuarial Report on the Canada Pension Plan. Rules checked 20 October 2026.
These figures are estimates based on the 2026 federal, provincial and territorial tax rules, CPP and EI rates published by the Canada Revenue Agency and other government sources. They are general information, not tax, financial or legal advice. Your pay stub can differ, for example because of your TD1 claims, RRSP or pension deductions, union dues, taxable benefits, bonuses, how often you are paid or the point in the year. Check your pay stub, or ask your employer or the CRA, before relying on these figures.