Calculate your Canada Pension Plan contributions including CPP2 enhancement
Start building savings today with KOHO — no fees, earn cashback. Code 45ET55JSYA gets you a $100 bonus.
Claim $100 Bonus →The original CPP covers earnings between the $3,500 exemption and $73,200 (the Year's Maximum Pensionable Earnings or YMPE). The employee rate is 5.95%, matched equally by your employer. Maximum CPP1 employee contribution in 2026: approximately $3,867 annually.
Since 2024, CPP includes a second component called CPP2. This covers earnings between $73,200 and $81,900 (the Year's Additional Maximum Pensionable Earnings or YAMPE). The CPP2 rate is 4%. Maximum CPP2 contribution: approximately $348 annually for employees earning over $81,900.
Your employer matches your CPP1 and CPP2 contributions dollar for dollar. If you contribute $3,867 in CPP1 and $348 in CPP2, your employer also contributes $3,867 + $348. Self-employed individuals pay both the employee and employer share — double the regular rate.
Quebec workers contribute to QPP instead of CPP. The QPP employee contribution rate is 6.4% (slightly higher than CPP's 5.95%). QPP also has an enhancement component. Maximum QPP1 contribution for 2026 is approximately $4,455. Benefits from QPP are comparable to CPP.
CPP deductions stop once you've reached the annual maximum — in most cases by November for high earners. If you work for multiple employers and over-contribute, you'll receive a CPP refund when you file your tax return. If you're over 65, still working, and receiving CPP benefits, you can elect to stop contributing to CPP.
CPP provides a monthly retirement benefit starting as early as age 60 (at reduced rates) or as late as age 70 (at enhanced rates). The maximum CPP payment in 2026 is approximately $1,433 per month for someone who contributed the maximum for 40 years and starts at 65. Average Canadians receive about $750–$900 per month.