If you earn more than $74,600 in 2026, you pay CPP2 on the part of your earnings above that amount, up to $85,000. The rate is 4%, so the maximum is $416 for employees and $832 for the self-employed. If you earn $74,600 or less, you pay no CPP2 at all.
The 2026 numbers
| Year's Maximum Pensionable Earnings (YMPE) | $74,600 |
| Year's Additional Maximum Pensionable Earnings (YAMPE) | $85,000 |
| CPP2 rate (employee, and again for the employer) | 4% |
| Maximum CPP2, employee | $416.00 |
| Maximum CPP2, self-employed (8%) | $832.00 |
| Maximum regular CPP, employee (5.95%) | $4,230.45 |
| Maximum CPP + CPP2, employee | $4,646.45 |
How much CPP2 you pay by salary
| Salary | Regular CPP | CPP2 | Total CPP |
|---|---|---|---|
| $70,000 | $3,956.75 | $0.00 | $3,956.75 |
| $75,000 | $4,230.45 | $16.00 | $4,246.45 |
| $78,000 | $4,230.45 | $136.00 | $4,366.45 |
| $80,000 | $4,230.45 | $216.00 | $4,446.45 |
| $82,000 | $4,230.45 | $296.00 | $4,526.45 |
| $85,000 | $4,230.45 | $416.00 | $4,646.45 |
| $100,000 | $4,230.45 | $416.00 | $4,646.45 |
| $150,000 | $4,230.45 | $416.00 | $4,646.45 |
Employee share, outside Quebec. Quebec workers pay QPP2 at the same 4% rate on the same earnings band.
Why CPP2 exists
CPP2 is the last stage of the CPP enhancement that began in 2019. It raises the ceiling on earnings that count towards your pension, so people who earn above the old ceiling get a bigger CPP pension when they retire. The extra contributions come with extra benefits: they are not a tax.
CPP2 lowers your income tax
CPP2 contributions are deducted from your taxable income, just like an RRSP contribution. At this income, the combined federal and provincial marginal rate is about 28% to 37% depending on your province, so the full $416 really costs you about $262 to $300 after the tax saving. Our Canada calculator includes this deduction automatically.
CPP and CPP2 limits by year
| Year | YMPE | YAMPE | Max CPP | Max CPP2 |
|---|---|---|---|---|
| 2024 | $68,500 | $73,200 | $3,867.50 | $188.00 |
| 2025 | $71,300 | $81,200 | $4,034.10 | $396.00 |
| 2026 | $74,600 | $85,000 | $4,230.45 | $416.00 |
Since 2025 the upper limit (YAMPE) has been set at about 14% above the YMPE, and both rise each year with average wages.
When CPP2 comes off your paycheque
Your employer deducts CPP2 only once your earnings for the year pass $74,600. Higher earners usually see regular CPP stop and CPP2 start in the same pay period, then CPP2 stop a few weeks later at $85,000. After that, your paycheque gets bigger for the rest of the year. More on how CPP and EI work together in our CPP and EI guide.
Frequently asked questions
What is the CPP maximum pensionable earnings for 2026?
The Year's Maximum Pensionable Earnings (YMPE) is $74,600 for 2026. The upper limit for CPP2, the YAMPE, is $85,000.
What is the maximum CPP2 contribution for 2026?
$416.00 for an employee, matched by the employer, and $832.00 for a self-employed person.
Do I pay CPP2 if I earn under $74,600?
No. CPP2 only applies to earnings between $74,600 and $85,000.
I have two jobs. Did I overpay CPP2?
Possibly. Each employer deducts CPP2 separately. If your total contributions are above the yearly maximum, the extra is refunded when you file your tax return.
Is CPP2 tax deductible?
Yes. CPP2 contributions are a deduction from taxable income, which reduces both federal and provincial income tax.
Source: CRA, CPP contribution rates, maximums and exemptions.
Written by Muhammad Raza. Last updated October 23, 2026.