CPP & EI Contributions Calculator
Calculate your 2026 CPP and EI deductions, including the CPP2 tier on earnings above the YMPE, and the income at which each one stops coming off your pay.
How to use this calculator
- 1Enter your annual employment income before deductions.
- 2Choose how often you are paid, to see the per-cheque amount.
- 3Check the thresholds table to see which tiers your income actually reaches.
- 4If your income is above the ceilings, note the pay period where deductions stop and take-home rises.
How the calculation works
CPP = 5.95% × (income − $3,500, capped at $74,600) + 4% × (income above $74,600, capped at $85,000). EI = 1.63% × income up to $68,900- YMPE
- Year's Maximum Pensionable Earnings — $74,600, the top of the base CPP tier
- YAMPE
- Year's Additional Maximum Pensionable Earnings — $85,000, the top of CPP2
- basic exemption
- The first $3,500 of earnings, on which no CPP is charged. It does not apply to CPP2
The published annual maximums fall straight out of these figures — (74,600 − 3,500) × 5.95% = 4,230.45 and (85,000 − 74,600) × 4% = 416.00 — which is a useful check that the thresholds are right.
CPP2 is the second tier introduced by the CPP enhancement. Contributions no longer stop at the YMPE, and the extra 4% band catches many higher earners who still expect them to.
Both stop once the annual maximum is reached, so take-home pay rises part-way through the year for anyone earning above the ceilings. Nothing about the salary changed — the deductions simply finished.
Worked example
$85,000 of employment income
- 1.CPP base: ($74,600 − $3,500) × 5.95% = $4,230.45, the annual maximum.
- 2.CPP2: ($85,000 − $74,600) × 4% = $416.00, also the maximum.
- 3.EI: income exceeds the $68,900 ceiling, so the premium is the maximum $1,123.07.
- 4.Together that is $5,769.52 a year, or about $221.90 per bi-weekly pay.
Result: $5,769.52 — every ceiling reached
Below the ceilings at $50,000
- 1.CPP base: ($50,000 − $3,500) × 5.95% = $2,766.75.
- 2.CPP2 does not apply, since income is below the $74,600 YMPE.
- 3.EI: $50,000 × 1.63% = $815.00, below the annual maximum.
- 4.Deductions continue all year rather than stopping early.
Result: $3,581.75, spread evenly across the year
Two deductions, three tiers
CPP and EI come off every Canadian pay cheque, and since the CPP enhancement completed there are now three separate tiers rather than two.
The base CPP tier charges 5.95% on earnings between the $3,500 basic exemption and the Year's Maximum Pensionable Earnings of $74,600. CPP2, the enhancement tier, charges a further 4% on earnings between that ceiling and the Year's Additional Maximum Pensionable Earnings of $85,000 — with no basic exemption. EI runs separately at 1.63% on all insurable earnings up to $68,900.
CPP2 is the piece that catches people out. Contributions used to stop cleanly at the YMPE, and many higher earners still expect that. They now continue into a second band, which is why total CPP for someone earning $85,000 or more is $4,646.45 rather than the $4,230.45 the base tier alone would suggest.
Why your pay goes up part-way through the year
Both CPP and EI stop once you have paid the annual maximum. For anyone earning well above the ceilings, that happens months before December.
The result is a mid-year rise in take-home pay that has nothing to do with a raise or a tax change — the deductions have simply finished for the year. They restart every January, which is why the first pay cheque of a new year is often noticeably smaller than the last one of the old.
This also means annual figures like these are not evenly spread. Someone earning $150,000 pays their entire CPP and EI in roughly the first half of the year, which is worth knowing when planning cash flow around a large purchase.
What your employer pays, and what Quebec does differently
The deductions on your payslip are only half the story. Your employer matches your CPP contribution exactly, dollar for dollar, and pays EI at 1.4 times your rate. The true payroll cost of employing you is therefore considerably above your salary — a figure worth knowing when negotiating, and one the self-employed feel directly, since they pay both halves of CPP themselves.
Quebec operates differently on both counts and none of the figures here apply there. The province runs the Quebec Pension Plan instead of CPP, at a higher contribution rate, and its EI premium rate is lower because the Quebec Parental Insurance Plan covers maternity and parental benefits separately. A Quebec payslip is not comparable to the rest of Canada on either line.
What this assumes, and where it stops
Assumptions
- Employment income outside Quebec, using 2026 federal figures.
- A single employer for the year — multiple employers can each deduct up to the maximum, with the excess refunded on filing.
- Employee contributions only; the employer portion is shown separately but not deducted from your pay.
- The contributor is between 18 and 70 and has not filed an election to stop CPP contributions.
Limitations
- Quebec uses the Quebec Pension Plan and a different EI rate, and is not covered here.
- Self-employed people pay both halves of CPP and are not modelled.
- Income tax is not included — this covers CPP and EI only, and provincial tax varies by province.
- Contributions with multiple employers can exceed the annual maximum during the year, with the excess recovered on your return.
Common questions
What is CPP2 and why is it coming off my pay?
CPP2 is the second contribution tier created by the CPP enhancement. It charges 4% on earnings between the $74,600 YMPE and the $85,000 YAMPE, on top of the 5.95% base tier. Contributions used to stop at the YMPE, so higher earners who expect them to end there now see a further deduction — a maximum of $416 for 2026 — continuing above it.
Why did my take-home pay increase mid-year?
Because you reached the annual CPP and EI maximums. Both stop once you have paid the yearly cap — $4,646.45 of combined CPP and $1,123.07 of EI for 2026 — so higher earners finish paying them months before December and see take-home rise for the rest of the year. They restart every January, which is why the first cheque of a new year is smaller.
How much CPP and EI will I pay in 2026?
CPP is 5.95% on earnings between $3,500 and $74,600 (maximum $4,230.45), plus 4% on earnings from $74,600 to $85,000 (maximum $416). EI is 1.63% on earnings up to $68,900, a maximum of $1,123.07. Anyone earning $85,000 or more pays the full $5,769.52 combined. Quebec figures differ on both counts.
Does my employer pay the same amount?
More, in fact. Your employer matches your CPP exactly and pays EI at 1.4 times your rate, so their EI cost is higher than yours. The combined payroll cost of employing someone is therefore meaningfully above their salary. Self-employed people pay both the employee and employer halves of CPP themselves, which is why self-employment CPP is roughly double.
Sources
- CPP contribution rates, maximums and exemptions — Canada Revenue Agency
- EI premium rates and maximums — Canada Revenue Agency
Formula and content last reviewed on .
Results are estimates for information only, not professional advice.
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