The two layers
CPP: you contribute 5.95% of earnings between the $3,500 basic exemption and $74,600 (the year's maximum pensionable earnings). The most an employee can pay in 2026 is $4,230.45.
CPP2: you contribute 4% of earnings between $74,600 and $85,000 (the additional maximum). The most you can pay is $416.00.
Your employer matches both. Self-employed people pay both halves: 11.9% and 8%.
What comes off your pay
Employee contributions for 2026 (outside Quebec):
| Salary | CPP | CPP2 | Total |
|---|---|---|---|
| $40,000 | $2,171.75 | $0.00 | $2,171.75 |
| $60,000 | $3,361.75 | $0.00 | $3,361.75 |
| $74,600 | $4,230.45 | $0.00 | $4,230.45 |
| $80,000 | $4,230.45 | $216.00 | $4,446.45 |
| $85,000 | $4,230.45 | $416.00 | $4,646.45 |
| $120,000 | $4,230.45 | $416.00 | $4,646.45 |
Why your paycheque changes during the year
Contributions stop once you reach the maximum. A higher earner pays CPP on every paycheque early in the year, hits the $74,600 ceiling, pays CPP2 for a while, then pays nothing for the rest of the year. Take-home pay rises later in the year as a result.
Tax treatment
Base CPP contributions earn a 14% federal non-refundable tax credit and a provincial credit. The enhanced part of CPP (1 percentage point of the 5.95%) and all of CPP2 are deducted from your taxable income instead, which is worth more at higher tax rates.
Quebec runs its own plan, QPP, with a slightly higher rate and the same ceilings, plus QPP2.