Canada Pension Plan (CPP) Contribution Rates
CPP Contributions on the Tax Return
Year's Maximum Pensionable Earnings (YMPE)
2024 and Later Year's Additional Maximum Pensionable Earnings (YAMPE)
TaxTips.ca Tax Calculators and CPP + Enhanced CPP Contributions
Government of Canada CPP Contribution Resources
Quebec Pension Plan (QPP) Contribution Rates
YMPE = Year's Maximum Pensionable Earnings
YAMPE = Year's Additional Maximum Pensionable Earnings
| Year | YMPE | CPP Rate |
Employee/ Employer Maximum |
YAMPE | CPP2 Rate |
Employee/ Employer Maximum |
Total Maximum Employee/ Employer |
Total Maximum Self- Employed |
|---|---|---|---|---|---|---|---|---|
| 2026 | $74,600 | 5.95% | $4,230.45 | $85,000 | 4% | $416 | $4,646.45 | $9,292.90 |
| 2025 | 71,300 | 5.95% | 4,034.10 | 81,200 | 4% | 396 | 4,430.10 | 8,860.20 |
| 2024 | 68,500 | 5.95% | 3,867.50 | 73,200 | 4% | 188 | 4,055.50 | 8,111.00 |
YMPE and YAMPE are always rounded down to the nearest $100.
The basic exemption is $3,500.
Employee/Employer maximum based on YMPE is (YMPE - $3,500) x 5.95%.
The self-employed maximum is always 2x the employee/employer maximum because the self-employed person pays both the employee and employer portions of the CPP.
2025 and later YAMPE = 114% x YMPE.
2024 YAMPE = 107% x YMPE.
CPP2 contribution is (YAMPE - YMPE) x 4%.
The 2026 CPP2 contribution of $416 = ($85,000 - $74,600) x 4%.
| Year | Maximum Pensionable Earnings (YMPE) |
Rate (1) | Employee/ Employer Maximum |
Self- Employed Maximum |
|---|---|---|---|---|
| 2023 | $66,600 | 5.95% | $3,754.45 | $7,508.90 |
| 2022 | 64,900 | 5.70% | 3,499.80 | 6,999.60 |
| 2021 | 61,600 | 5.45% | 3,166.45 | 6,332.90 |
| 2020 | 58,700 | 5.25% | 2,898.00 | 5,796.00 |
| 2019 | 57,400 | 5.10% | 2,748.90 | 5,497.80 |
| 2018 | 55,900 | 4.95% | 2,593.80 | 5,187.60 |
| 2017 | 55,300 | 4.95% | 2,564.10 | 5,128.20 |
| 2016 | 54,900 | 4.95% | 2,544.30 | 5,088.60 |
| 2015 | 53,600 | 4.95% | 2,479.95 | 4,959.90 |
| 2014 | 52,500 | 4.95% | 2,425.50 | 4,851.00 |
| 2013 | 51,100 | 4.95% | 2,356.20 | 4,712.40 |
| 2012 | 50,100 | 4.95% | 2,306.70 | 4,613.40 |
| 2011 | 48,300 | 4.95% | 2,217.60 | 4,435.20 |
| 2010 | 47,200 | 4.95% | 2,163.15 | 4,326.30 |
| 2009 | 46,300 | 4.95% | 2,118.60 | 4,237.20 |
| 2008 | 44,900 | 4.95% | 2,049.30 | 4,098.60 |
| 2007 | 43,700 | 4.95% | 1,989.90 | 3,979.80 |
Note:
Tax Tip: If you are an incorporated contractor with only 1 client, you may be a Personal Services Business with higher corporate tax rates and limited deductions.
The 2026 CPP rate of 5.95% is broken down into 2 parts on the tax return, with each part treated differently for the employee:
a. 4.95%: The employee maximum for the non-refundable tax credit for CPP premiums:
b. 1.00%: The "additional contribution" for the Enhanced Canada Pension Plan, which is allowed as a deduction from income, not as a tax credit:
The employer portion of all CPP contributions is tax-deductible for the employer.
For a self-employed individual, half of their contributions are considered their employee portion, and the other half is their employer portion. Their employer portion is tax-deductible, as is the "additional contribution" part of their employee contribution.
The YMPE, or "earnings ceiling", is increased for indexation each year based on the "Wage Measure", which is Table 14-10-0203-01 Employment and average weekly earnings (including overtime) for all employees by province and territory, monthly, not seasonally adjusted as published by Statistics Canada. The indexation factor for 2026 is calculated as:
average of 12 months Wage Measure for the 12 months ending Jun 30, 2025
divided by
average of 12 months Wage Measure for the 12 months ending Jun 30, 2024
= indexation factor
The indexation factor is multiplied by the previously calculated but unrounded YMPE to get the YMPE for the coming year. The result is then rounded, and if the result is not a multiple of $100, the result is rounded down to the next multiple of $100 below the result.
However, if the above calculation results in a decrease to the YMPE, the result will be increased to the YMPE from the preceding year, so that the YMPE will not be reduced.
Jason Yee, CFA, P.Eng. of Finepoint Solutions Inc. has created a paper to help everyone understand the calculation of the YMPE. See Real-time Estimation Method for the Year's Maximum Pensionable Earnings (YMPE) - scroll down to find this.
In 2019 and later years, there is an additional contribution of 0.15% to 1% x the YMPE, which is included in the total rate. This is called the "first additional contribution" for the Enhanced CPP. On the tax return, the additional contribution will be allowed as a deduction. Employers will also pay the additional contribution. Self-employed will pay both the employee and employer additional contributions, and will be able to deduct 100% of the additional contribution on their tax return. The first additional contribution increased each year, so that in 2023 and later years the total rate is 5.95%, as follows:
2019 0.15% +4.95% = 5.10% total rate
2020 0.30% +4.95% = 5.25%
2021 0.50% +4.95% = 5.45%
2022 0.75% +4.95% = 5.70%
2023 1.00% +4.95% = 5.95%
In 2024 there is a Year's Additional Maximum Pensionable Earnings (YAMPE, also called the 2nd earnings ceiling) calculated, which will be 107% x the YMPE.
In 2025 and later years the YAMPE will be 114% x the YMPE. If the result is not a multiple of $100, the result is rounded down to the next multiple of $100 below the result.
The contribution amount (2nd additional contribution) will be 4% of the difference between the YAMPE and the YMPE. Self-employed will pay 8%.
The 2nd additional contribution will also be deductible from income.
Contributors who make more than the YAMPE are not required or permitted to make additional CPP contributions.
In the Detailed Canadian Income Tax Calculator for 2019 and later years, the total CPP + Enhanced CPP for employment income is shown near the bottom of the calculator, in the calculation of Total taxes, clawbacks, CPP/EI premiums. Since the CPP on self-employment income is calculated on the tax return and remitted in the same manner as income tax, it is shown separately and included in the total payable by the taxpayer.
Who Has to Pay CPP or QPP Premiums?
Payroll Tax Calculators for different methods of checking payroll deductions, and an online payroll calculator which employers can use for calculating payroll deductions.
Self-employed and filing a tax return more than 4 years late?
Canada Pension Plan (CPP) Retirement Benefit Rules
Canada Pension Plan Enhancement
Canada's Finance Ministers Agree to Strengthen Canada Pension Plan - June 20, 2016.
T4032 Payroll Deduction Tables - for calculating payroll deductions
CPP contribution rates, maximums and exemptions for rates from current and earlier years.
YMPE = Year's Maximum Pensionable Earnings
YAMPE = Year's Additional Maximum Pensionable Earnings
The self-employed maximum is always 2x the employee/employer maximum.
| Year | YMPE | QPP Rate |
Employee/ Employer Maximum |
YAMPE | QPP2 Rate |
Employee/ Employer Maximum |
Total Maximum Employee/ Employer |
Total Maximum Self- Employed |
|---|---|---|---|---|---|---|---|---|
| 2026 | $74,600 | 6.40% | $4,550.40 | $85,000 | 4% | $416 | $4,966.40 | $9,516.80 |
| 2025 | 71,300 | 6.40% | 4,339.20 | 81,200 | 4% | 396 | 4,735.20 | 9,470.40 |
| 2024 | 68,500 | 6.40% | 4,160.00 | 73,200 | 4% | 188 | 4,348.00 | 8,696.00 |
YMPE and YAMPE are always rounded down to the nearest $100.
Employee/Employer maximum is always (YMPE - $3,500) x 6.4%
2025 and later YAMPE = 114% x YMPE.
2024 YAMPE = 107% x YMPE.
The 2026 QPP2 contribution of $416 = ($85,000 - $74,600) x 4%.
The 2025 QPP2 contribution of $396 = ($81,200 - $71,300) x 4%.
The 2024 QPP2 contribution of $188 = ($73,200 - $68,500) x 4%.
| Year | Maximum Pensionable Earnings (YMPE) |
QPP Rate |
Employee/ Employer Maximum |
Self- Employed Maximum |
|---|---|---|---|---|
| 2023 | $66,600 | 6.40% | $4,038.40 | $8,076.80 |
| 2022 | 64,900 | 6.15% | 3,776.10 | 7,552.20 |
| 2021 | 61,600 | 5.90% | 3,427.90 | 6,855.80 |
| 2020 | 58,700 | 5.70% | 3,146.40 | 6,292.80 |
| 2019 | 57,400 | 5.55% | 2,991.45 | 5,982.90 |
| 2018 | 55,900 | 5.40% | 2,829.60 | 5,659.20 |
| 2017 | 55,300 | 5.40% | 2,797.20 | 5,594.40 |
| 2016 | 54,900 | 5.325% | 2,737.05 | 5,474.10 |
| 2015 | 53,600 | 5.250% | 2,630.25 | 5,260.50 |
| 2014 | 52,500 | 5.175% | 2,535.75 | 5,071.50 |
| 2013 | 51,100 | 5.100% | 2,427.60 | 4,855.20 |
| 2012 | 50,100 | 5.025% | 2,341.65 | 4,683.30 |
| 2011 | 48,300 | 4.95% | 2,217.60 | 4,435.20 |
| 2010 | 47,200 | 4.95% | 2,163.15 | 4,326.30 |
| 2009 | 46,300 | 4.95% | 2,118.60 | 4,237.20 |
| 2008 | 44,900 | 4.95% | 2,049.30 | 4,098.60 |
| 2007 | 43,700 | 4.95% | 1,989.90 | 3,979.80 |
Note: The basic annual exemption is $3,500.
Quebec will enhance the QPP in the same manner to which the CPP is being enhanced. The resulting rates to 2023 are as follows, with the 2023 rate remaining the same in later years:
2019 0.15% +5.40% = 5.55% total rate
2020 0.30% +5.40% = 5.70%
2021 0.50% +5.40% = 5.90%
2022 0.75% +5.40% = 6.15%
2023 1.00% +5.40% = 6.40%
As with the CPP, the additional contributions to the QPP are a deduction on the tax return, while the 5.40% contribution will be allowed as a non-refundable tax credit.
The QPP will use the same YMPE and YAMPE as the CPP, and it will be increased in the same manner, using the same 2nd additional contribution rate, as the CPP.
Source deductions and contributions - for calculating payroll deductions
TP-1015.G-V - Guide for Employers: Source Deductions and Contributions
Maximum pensionable salary or wages and QPP contribution rate
Quebec Pension Plan - information about retirement pension, disability pension, and survivors' benefits
Revised: November 08, 2025