The Canada Revenue Agency has announced that the Year’s Maximum Pensionable Earnings under the Canada Pension Plan (CPP) for 2026 will be $74,600 – up 4.6% from $71,300 in 2025. In addition, in 2026, a higher, second earnings ceiling of $85,000 will be used to determine additional CPP contributions (CPP2). As a result, pensionable earnings between $74,600 and $85,000 are subject to CPP2 contributions. The new ceiling was calculated according to a CPP-legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
The employee and employer contribution rates for 2026 will be 5.95%, unchanged from 2025.
The maximum employer and employee contribution to the CPP for 2026 will be $4,230.45 each, up from $4,034.45 in 2025. The basic exemption amount will remain at $3,500.00.
Additional employee and employer contribution rates for 2026 will remain at 4.00%, on earnings above the YMPE, up to the YAMPE. The maximum additional employee and employer contribution to the CPP for 2026 will be $416.00 each, up from $396.00 in 2025.