- CPP contribution figures for 2026 and 2025
- Who pays CPP contributions
- The employer's share
- Basic exemption by pay period
- When to stop deducting CPP
- When an employee changes jobs mid-year
- Quebec and First Nations employees
- How the figures have moved
- How to handle CPP in payroll
- The verdict
- Frequently asked questions
For 2026, CPP contributions are worked out on pensionable earnings up to a maximum of $74,600, less a $3,500 basic exemption, at a contribution rate of 5.95 for both employee and employer (the CRA table shows the rate as a percentage). As of October 2026, that makes the maximum $4,230.45 each for the employee and the employer, and $8,460.90 for a self-employed person.
Employers deduct CPP from each pay, match it, and remit both halves. The figures below come from the Canada Revenue Agency's own table and payroll guidance, in Canadian dollars.
CPP contribution figures for 2026 and 2025
| Item | 2026 | 2025 |
|---|---|---|
| Maximum annual pensionable earnings | $74,600 | $71,300 |
| Basic exemption amount | $3,500 | $3,500 |
| Maximum contributory earnings | $71,100 | $67,800 |
| Employee and employer rate (%) | 5.95 | 5.95 |
| Maximum annual employee and employer contribution (each) | $4,230.45 | $4,034.10 |
| Maximum annual self-employed contribution | $8,460.90 | $8,068.20 |
The basic exemption hasn't moved from $3,500 in the CRA's table, while maximum pensionable earnings rise most years. This table covers base CPP only: the second additional contribution (CPP2) is worked out separately.
Who pays CPP contributions
You deduct CPP from an employee's pensionable earnings if they meet all the CRA's conditions, including that they're between 18 and 69 years old, even if they already receive a CPP or QPP retirement pension, and aren't considered disabled under the CPP or QPP. Employees whose province of employment is Quebec follow separate rules.
Employees aged 65 to 69 can hand you Form CPT30 to stop contributing. Once you receive it during the year, you stop deducting CPP.
The employer's share
You must contribute an amount equal to the CPP you deduct from each employee and remit both together. The CRA is blunt about mistakes: even if you didn't make the deductions, you're deemed to have made them, and the shortfall can show up in a pensionable and insurable earnings review (PIER).
Basic exemption by pay period
| Pay period | Basic exemption per period |
|---|---|
| Weekly (52) | $67.30 |
| Bi-weekly (26) | $134.61 |
| Semi-monthly (24) | $145.83 |
| Monthly (12) | $291.66 |
| Quarterly (4) | $875.00 |
| Annually (1) | $3,500 |
If an employee will earn less than the $3,500 exemption from their job with you in the year, you don't withhold CPP. If they'll earn more, you subtract the pay-period share of the exemption before calculating each deduction.
When to stop deducting CPP
- Stop when the employee reaches the maximum contribution for the year in their employment with you.
- Prorate the maximum if the employee turns 18 or 70 in the year.
- Prorate it if they give you a completed Form CPT30 during the year.
- Prorate it if they're considered disabled under the CPP during the year, or die in the year.
The maximum applies to each job separately. So an employee with two jobs can have CPP deducted by both employers.
When an employee changes jobs mid-year
This is the rule that surprises most new employers. If someone joins you part-way through the year, you deduct CPP without taking into account what their previous employer took, even if they already paid the maximum there. The CRA's own example: an employee tells you they had $1,700 deducted by a previous employer and that, together with your deductions, they've hit the maximum. The answer is to keep deducting until they reach the maximum in their employment with you.
Any overpayment is refunded to the employee when they file their income tax and benefit return. As the employer, you aren't entitled to a refund of your share. The exception is a restructuring: a successor employer may, in certain situations, count what the former employer deducted and remitted as if it had done so itself.
Quebec and First Nations employees
If an employee's province of employment is Quebec, you deduct Quebec Pension Plan (QPP) contributions instead of CPP, whatever province they live in. If you transfer someone between Quebec and another province during the year, you can take the QPP already deducted into account, using a formula to reconcile the two, and you prepare two T4 slips for that employee.
Employment income of a First Nations employee that's exempt from income tax isn't subject to CPP contributions. If you're unsure whether a payment counts as pensionable earnings at all, the CRA's guidance on the tax treatment of payments other than regular employment income is the place to check.
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How the figures have moved
| Year | Maximum pensionable earnings | Rate (%) | Employee maximum |
|---|---|---|---|
| 2026 | $74,600 | 5.95 | $4,230.45 |
| 2025 | $71,300 | 5.95 | $4,034.10 |
| 2024 | $68,500 | 5.95 | $3,867.50 |
| 2023 | $66,600 | 5.95 | $3,754.45 |
| 2022 | $64,900 | 5.70 | $3,499.80 |
The rate has stayed at 5.95 since 2023, so the yearly change in the maximum now comes from the earnings ceiling rising.
How to handle CPP in payroll
- Check the employee's age and status against the CRA conditions.
- Work out pensionable earnings for the pay period.
- Subtract the basic exemption for that pay period.
- Apply the 5.95 rate from the CRA table to get the employee deduction, and match it as the employer.
- Track the year-to-date total and stop at the maximum.
- Report the totals on each employee's slip. Our T4 slip guide covers where CPP goes.
If you're registering as a new employer, you'll need a payroll account under your CRA business number before the first remittance.
The verdict
For 2026, the three numbers to set in your payroll are $74,600, $3,500 and 5.95, and the cap per employee is $4,230.45 from them and the same again from you. Don't skip deductions on low earners without checking the exemption, because the CRA treats missed deductions as if you'd made them.
Frequently asked questions
What is the CPP contribution rate for 2026?
The CRA table shows an employee and employer contribution rate of 5.95 (expressed as a percentage) for 2026.
What is the maximum CPP contribution for 2026?
$4,230.45 each for the employee and the employer, and $8,460.90 for a self-employed person.
What is the CPP basic exemption?
$3,500 a year. Employees earning less than that in their employment with you don't have CPP withheld.
At what age do CPP contributions stop?
Deductions apply to employees between 18 and 69. Employees aged 65 to 69 can stop by giving the employer Form CPT30.
Do employers match CPP contributions?
Yes. The employer must contribute an amount equal to the CPP deducted from the employee and remit both.
Is the CPP maximum per job?
Yes. The maximum pensionable earnings apply to each job, so each employer deducts up to the maximum.
