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CPP & EI Calculator Canada 2026

Estimate Canada Pension Plan (CPP) and Employment Insurance (EI) deductions from your annual employment income. Updated with 2026 CRA rates. Free, no sign-up.

By Sammy S. · Founder · AuthorUpdated for 2026

YMPE $74,600
Max CPP $4,230
Max EI $1,123
Self-Employed

Estimate your CPP & EI deductions

Enter your annual employment income and tax year. Results update instantly beside the form.

Income & tax year

CRA payroll deductions · CPP + EI

2026
$
Estimates CPP1 + EI for one employer. CPP2 (earnings above YMPE) and Quebec QPP/QPIP rates are not included.

Total CPP + EI · 2026

$4,340

CPP $3,362 · EI $978 · 7.2% of income

CPP

$3,362

Max $4,230.45

EI

$978

Max $1,123.07

2026 rates applied

CPP rate / exemption5.95% · $3,500
YMPE$74,600
EI rate / max insurable1.63% · $68,900

Employee deductions only. Employer CPP matches employee; employer EI is 1.4×. For full take-home after income tax, use the Canada Tax Calculator.

CPP & EI Guide Canada 2026

CRA rates, formulas, self-employment, retirement benefits, tax credits, and overpayments

2026 CPP & EI rates (CRA)

CPP (Canada Pension Plan)

Employee rate5.95%
Basic exemption$3,500
YMPE$74,600
Max contribution$4,230.45

EI (Employment Insurance)

Employee rate1.63%
QC employee rate1.30%
Max insurable$68,900
Max premium$1,123.07

Source: CRA T4127 — Payroll Deductions Formulas 2026

Full take-home by province (tax + CPP + EI)

CPP and EI are federal. For full take-home including provincial income tax:

AlbertaBritish ColumbiaManitobaNew BrunswickNewfoundland and LabradorNorthwest TerritoriesNova ScotiaNunavutOntarioPrince Edward IslandQuebecSaskatchewanYukon

What is CPP (Canada Pension Plan)?

CPP (Canada Pension Plan) is a federal pension program funded by employee and employer contributions. As an employee, you pay CPP on your employment income above the $3,500 basic annual exemption, up to the Year's Maximum Pensionable Earnings (YMPE) — $74,600 for 2026.

The CPP employee rate is 5.95%. Once your year-to-date pensionable earnings (minus the exemption) reach the maximum, CPP deductions stop for the rest of the year. Employers match the employee contribution dollar-for-dollar.

CPP contributions earn you a retirement pension benefit, as well as disability and survivor benefits. For full take-home including income tax, use our Canada Tax Calculator.

What is EI (Employment Insurance)?

EI (Employment Insurance) provides temporary income support if you lose your job, and also covers maternity, parental, sickness, and compassionate care benefits. You pay EI premiums on your insurable earnings up to a maximum insurable amount set each year — $68,900 for 2026.

The EI employee rate is 1.63% in 2026 (1.30% in Quebec, which operates its own QPIP parental plan; max $895.70). Unlike CPP, there is no basic exemption — EI premiums start from the first dollar of insurable earnings.

For how RRSP contributions affect your tax bill, use our RRSP Calculator Canada.

CPP & EI calculation formulas

CPP formula

CPP = (Income − $3,500) × 5.95%

Capped at YMPE of $74,600

e.g. $60,000: (60,000 − 3,500) × 0.0595 = $3,362

Max: (74,600 − 3,500) × 0.0595 = $4,230.45

Only employment income above $3,500 and up to the YMPE attracts CPP. Once year-to-date contributions reach the maximum, deductions stop for the rest of the year.

EI formula

EI = min(Income, $68,900) × 1.63%

No basic exemption — starts from $1 earned

e.g. $60,000: 60,000 × 0.0163 = $978

Max: 68,900 × 0.0163 = $1,123.07

Quebec residents pay 1.30% (max $895.70) since QPIP covers parental benefits. Employers pay 1.4× the employee rate (except Quebec employers, who pay 1.4× the QC rate: $1.82 per $100).

CPP & EI deductions at a glance — 2026 (employee, annual)

Annual incomeCPPEITotal
$30,000$1,577$489$2,066
$40,000$2,172$652$2,824
$50,000$2,767$815$3,582
$60,000$3,362$978$4,340
$70,000$3,957$1,123$5,080
$74,600+$4,230$1,123$5,354

Employee deductions only. Employer CPP = same as employee. Employer EI = 1.4× employee. CPP2 (on earnings $74,600–$85,000, max $416) not included. Source: CRA T4127 2026.

Employee vs. self-employed: CPP & EI differences

Employee (T4)

  • CPP: 5.95% on income above $3,500, up to YMPE — employer matches
  • EI: 1.63% on insurable earnings — employer pays 1.4× more
  • Deductions withheld automatically by employer each pay period
  • Overpayments (multiple employers) refunded on T1 return
  • CPP credited toward retirement pension benefit
  • EI coverage: job loss, maternity, parental, sickness benefits

Self-Employed

  • CPP: 11.9% combined (both employee + employer shares) — max $8,460.90 for 2026
  • EI: Not required — self-employed income is not insurable by default
  • Pay CPP via quarterly tax instalments or on T1 return
  • Employer's CPP share (5.95%) is a deductible business expense
  • Employee's CPP share qualifies for a non-refundable tax credit
  • Can opt into EI voluntarily for special benefits (maternity, etc.)

CPP2: Second Additional CPP Contribution (2026)

Starting in 2024, a second additional CPP contribution (CPP2) applies to earnings between the first YMPE ($74,600 in 2026) and the Year's Additional Maximum Pensionable Earnings (YAMPE, $85,000 for 2026).

The CPP2 employee rate is 4.0%. The maximum CPP2 employee contribution for 2026 is $416 (($85,000 − $74,600) × 4%). Self-employed pay both sides at 8%: max $832. Unlike CPP1, the employer's share of CPP2 cannot be deducted as a business expense for self-employed individuals for income tax purposes.

This calculator estimates CPP1 only. For combined CPP1 + CPP2 + EI, use CRA's Payroll Deductions Online Calculator (PDOC) at canada.ca.

What your CPP contributions buy: the 2026 retirement benefit at 65 is $1,507.65/month

Source: ESDC Canada.ca — Maximum Benefit Amounts, CPP (January 2026)

The CPP contribution table shows what you pay in — but what do you get back? The maximum CPP retirement pension depends on your contribution history, how many years you contributed at or near the maximum, and critically, when you start collecting.

Start at 60

~$964.90/mo

−36% permanent reduction (0.6%/mo × 60)

Start at 65

$1,507.65/mo

Maximum 2026 (avg new recipient: $925.35)

Start at 70

~$2,140.86/mo

+42% total increase (0.7%/mo × 60)

Benefit type (2026)Maximum monthlyNotes
CPP Retirement (age 65)$1,507.65Avg new beneficiary: $925.35. Requires ~39 yrs at max CPP
CPP Disability pension$1,741.20Flat $610.46 + earnings-related $1,130.74
CPP Survivor's pension (65+)$904.5960% of deceased contributor's retirement pension
CPP Post-retirement benefit (age 65)$54.69For contributing while already receiving CPP
OAS pension (age 65–74)$742.31/moSeparate federal benefit; clawed back >$90,997 net income
OAS pension (age 75+)$816.54/mo10% increase at 75; same clawback threshold applies

CPP + OAS combined maximum at 65 in 2026

CPP ($1,507.65) + OAS ($742.31) = $2,249.96/month ($26,999.52/year) — both are taxable income.

Average Canadians receive much less: the average new CPP + OAS recipient takes home ~$1,667/month combined. RRSP/RRIF income supplements the gap for most retirees.

CPP and EI as non-refundable tax credits: how $4,230 in CPP only costs you $3,638 after the federal credit

Source: CRA T4127 2026; T1 lines 30800, 31200

Unlike RRSP contributions (which reduce your taxable income), CPP and EI contributions generate non-refundable federal tax credits. A credit directly reduces the tax you owe — making the real after-credit cost of CPP and EI lower than the sticker price.

ContributionMax 2026Federal credit (14%)Effective net costT1 line
CPP1 employee contribution$4,230.45$592.26$3,638.19Line 30800
EI employee premium$1,123.07$157.23$965.84Line 31200
Combined CPP1 + EI$5,353.52$749.49$4,604.03Lines 30800 + 31200

Self-employed: double the CPP, but a better deduction

  • Pay both employer + employee CPP: total $8,460.90 in 2026
  • Employer half ($4,230.45): deductible on T2125 — saves tax at your marginal rate (up to 33% federal), not just 14%
  • Employee half ($4,230.45): earns the 14% non-refundable tax credit on Line 31000
  • CPP2 employer share: cannot be deducted as a business expense (unlike CPP1 employer share)

Quebec residents: QPP + QPIP credits also apply provincially

  • QPP contributions generate both a federal and Quebec provincial tax credit
  • QPIP (Quebec Parental Insurance Plan) premiums also generate a provincial non-refundable credit
  • Quebec residents file both a federal T1 (CRA) and a provincial TP-1 (Revenu Québec) return
  • The higher QPP rate (6.30% for 2026) vs CPP (5.95%) means slightly more contributions but also slightly more credit

CPP and EI overpayment: multiple employers, mid-year job changes, and Quebec + other provinces

Source: CRA T1 General — Lines 44800 (CPP), 45000 (EI)

Every employer withholds CPP and EI independently — they have no visibility into what other employers have already deducted. If you work multiple jobs (simultaneously or sequentially), you can easily overpay CPP and EI in a calendar year. The CRA refunds the excess automatically when you file your T1.

ScenarioWhat happensHow to recover
Two concurrent jobs (both T4)Each employer withholds CPP (up to $4,230.45) and EI (up to $1,123.07) separately. Total deductions may exceed annual max.CRA auto-calculates on T1. Overpayment refunded: CPP → Line 44800, EI → Line 45000.
Job change mid-yearNew employer starts withholding from $0 even if you already hit the YMPE at your prior job. Common in Q3/Q4 job switches.Same as above — claim on T1. New employer cannot be told to stop withholding; must recover via T1.
Employment income + self-employmentT4 CPP is deducted by employer; self-employment CPP is calculated separately on T1. Both count toward the annual max.CRA nets the two on your T1. If combined CPP exceeds max, no additional self-employed CPP is assessed for the excess.
Work in Quebec + another province same yearQPP (Quebec) and CPP (other province) are separate systems — no cross-over overpayment. Each applies to earnings in that province.File T1 (CRA) for federal + CPP portion and TP-1 (Revenu Québec) for QPP portion. No overpayment if you never exceeded each system's max within its jurisdiction.

Most common overpayment scenario: seasonal workers and contractors

  • A worker who earns $40,000 at Job A (Jan–Jun) and $40,000 at Job B (Jul–Dec) has combined insurable earnings of $80,000 — above the $68,900 EI ceiling and approaching the $74,600 CPP YMPE.
  • Job B will withhold EI from the first dollar, unaware that Job A already deducted near the max. Total EI deducted: up to $2,246 — but the real max is $1,123.07. Refund: ~$1,123 claimed on T1.
  • CPP2 overpayments work the same way: max $416 total in 2026, but each employer withholds independently on earnings above $74,600.

Official references

Primary CRA and ESDC sources for CPP, EI, and payroll deductions

Rates and maximums follow CRA T4127 for the selected tax year. For combined CPP1 + CPP2 + EI payroll withholding, use CRA's Payroll Deductions Online Calculator (PDOC).

The CPP and EI totals above come from the annual employment income and tax year you enter—not a third-party feed. We apply CRA pensionable and insurable earnings rules for the selected year: CPP on earnings between the basic exemption and the Year's Maximum Pensionable Earnings (YMPE), and EI on insurable earnings up to the annual maximum. Below are the formulas, the order we follow, and worked examples you can check by hand.

Formulas

LineFormula
Pensionable earnings (CPP)Lesser of (income − $3,500 exemption, YMPE − $3,500); minimum $0
CPP contributionPensionable earnings × 5.95%, capped at annual maximum
Insurable earnings (EI)Lesser of (annual income, EI maximum insurable earnings)
EI premiumInsurable earnings × employee EI rate, capped at annual maximum
Total payroll premiumsCPP + EI
Effective premium rateTotal premiums ÷ annual employment income
Per paycheque (estimate)Annual CPP or EI ÷ number of pay periods (e.g. ÷ 26 biweekly)

Order of operations

1

Start with annual employment income

T4 box 14 employment income for the year

Enter gross employment income before income tax—not self-employment profit, not investment income. This calculator assumes one employer for the full year with no year-to-date tracking.

2

Calculate pensionable earnings

Pensionable = max(0, min(income − $3,500, YMPE − $3,500))

The first $3,500 of employment income is exempt from CPP. Earnings above the YMPE are not pensionable for base CPP on this page.

3

Calculate CPP contribution

CPP = pensionable earnings × 5.95%, capped at annual max

Employees pay 5.95% on pensionable earnings in 2025–2026 (outside Quebec, which uses QPP at a different rate). The annual maximum stops further CPP once reached.

4

Calculate EI premium

EI = min(income, max insurable) × employee rate

EI applies from the first dollar of insurable employment income up to the annual insurable earnings ceiling. There is no basic exemption for EI.

5

Add CPP and EI

Total = CPP + EI

These are payroll premiums deducted from your paycheque, separate from federal and provincial income tax. Your employer matches CPP and pays 1.4× the EI rate (not shown here).

Worked example

$60,000 annual employment income, 2026

Pensionable earnings = min($60,000 − $3,500, $74,600 − $3,500) = $56,500 → CPP $56,500 × 5.95% = $3,361.75

Insurable earnings = min($60,000, $68,900) = $60,000 → EI $60,000 × 1.63% = $978.00

Total CPP + EI = $3,361.75 + $978.00 = $4,339.75 (7.2% of income)

Line itemAmount
Annual employment income$60,000
Pensionable earnings (CPP)$56,500
CPP contribution$3,361.75
CPP maximum (reference)$4,230.45
Insurable earnings (EI)$60,000
EI premium$978.00
EI maximum (reference)$1,123.07
Total CPP + EI$4,339.75
Effective premium rate7.2%
Biweekly CPP + EI (÷ 26)$166.91

At $100,000 income, CPP is capped at $4,230.45 (max $4,230.45 because pensionable earnings hit the YMPE ceiling). EI is $1,123.07 (max $1,123.07). Total premiums: $5,353.52.

Below the $3,500 CPP exemption, $3,000 income pays $0 CPP but still pays $48.90 EI (no EI exemption).

2026 rates and limits we use

ParameterWhat we use
CPP basic exemption$3,500
YMPE (2026)$74,600
CPP employee rate5.95%
CPP maximum contribution (2026)$4,230.45
EI maximum insurable (2026)$68,900
EI employee rate1.63%
EI maximum premium (2026)$1,123.07

What we do not model on this page

We calculate base CPP and EI only—not CPP2/QPP2 on earnings above YMPE, Quebec QPP/QPIP rates, year-to-date tracking across multiple jobs, employer matching contributions, or non-refundable tax credits on CPP/EI. Self-employed workers pay both employer and employee CPP through a different formula (not modeled here). For full take-home including income tax, use our Canada tax calculator.

Official references

FAQ

Frequently asked questions

CPP rates, YMPE, EI premiums, CPP2, self-employment, tax credits, and overpayments

CPP = (Pensionable Income − $3,500 basic exemption) × 5.95%, capped at the YMPE. For 2026, YMPE is $74,600 so the maximum contribution is (74,600 − 3,500) × 5.95% = $4,230.45. If your income is below $3,500 you owe no CPP. CPP is withheld per pay period and stopped once year-to-date contributions reach the annual maximum.

EI = Insurable Earnings × 1.63% (2026), capped at the Maximum Annual Insurable Amount of $68,900. This gives a maximum annual premium of $1,123.07. Unlike CPP there is no basic exemption — premiums start from the first dollar earned. Quebec residents pay a lower employee rate (1.30%) as Quebec operates its own parental insurance plan (QPIP).

The Year's Maximum Pensionable Earnings (YMPE) for 2026 is $74,600 (up from $71,300 in 2025). It is set each year by the federal government based on average wage growth. Only earnings between the basic exemption ($3,500) and the YMPE attract CPP contributions.

The maximum employee CPP contribution for 2026 is $4,230.45, calculated as ($74,600 YMPE − $3,500 basic exemption) × 5.95%. Employers match this amount dollar-for-dollar. Self-employed individuals pay both portions: $4,230.45 × 2 = $8,460.90.

The maximum annual EI premium for 2026 is $1,123.07 (employee), calculated as $68,900 maximum insurable earnings × 1.63%. Employers pay 1.4× the employee rate = $1,572.30. In Quebec, the employee rate is 1.30% (max premium $895.70) since QPIP covers parental benefits.

No. CPP only applies to employment income above the $3,500 basic annual exemption and up to the YMPE ($74,600 in 2026). Income below $3,500 is exempt; income above $74,600 attracts no further CPP (only CPP2 applies between $74,600 and the Year's Additional Maximum Pensionable Earnings). Tips, commission, and vacation pay are generally pensionable. Investment income, pension income, and EI benefits are not.

Once your year-to-date payroll deductions reach the annual maximum, your employer stops withholding CPP or EI for the rest of the year. If you have multiple employers they each withhold separately, which can result in overpayment — you can claim a refund for the excess on your T1 income tax return.

Self-employed individuals pay both the employee (5.95%) and employer (5.95%) portions of CPP — a combined rate of 11.9% on net self-employment income above the $3,500 exemption, up to the YMPE. The max self-employed CPP for 2026 is $8,460.90. The employer's share is deductible as a business expense; the employee's share qualifies for a tax credit. Self-employed people are not required to contribute to EI (no coverage), though they may opt in voluntarily.

Starting in 2024, CPP2 applies to earnings between the first YMPE ($74,600 in 2026) and the Year's Additional Maximum Pensionable Earnings (YAMPE, $85,000 in 2026). The CPP2 employee rate is 4.0%. Maximum CPP2 employee contribution for 2026 is $416 (($85,000 − $74,600) × 4%). Self-employed pay both sides at 8%: max $832. This calculator estimates CPP1 contributions only — check CRA's payroll deduction tables for combined CPP1 + CPP2.

The maximum CPP retirement pension for a new beneficiary starting at age 65 in January 2026 is $1,507.65 per month (per ESDC, Canada.ca). The average new recipient receives approximately $925.35/month — most people do not reach the maximum because it requires contributing the maximum CPP amount for at least 39 qualifying years. If you defer CPP to age 70, benefits increase by 0.7% per month (42% total): max $2,140.86/month. Starting at age 60 permanently reduces benefits by 0.6%/month (up to 36%): max approximately $964.90/month. CPP benefits are taxable income and may affect clawback of income-tested benefits such as the Guaranteed Income Supplement (GIS).

Yes. Both CPP (employee share) and EI premiums generate a federal non-refundable tax credit at the lowest federal tax rate — 14% for 2026. This means: CPP1 credit = $4,230.45 × 14% = $592.26 in federal tax savings; EI credit = $1,123.07 × 14% = $157.23 in federal tax savings. Combined: approximately $749 in federal tax savings per year at maximum contributions. For self-employed individuals: the employer's share of CPP (50%) is a deductible business expense on T2125 (reduces taxable income at your marginal rate, worth more than the 14% credit). The employee's share earns the same 14% non-refundable credit. Quebec residents also receive provincial tax credits for QPP and QPIP contributions on their provincial return. Source: CRA T4127, Line 30800, Line 31200.

Each employer independently withholds CPP and EI up to the annual maximum — they do not coordinate with each other. If you have multiple jobs (concurrent or sequential), each employer withholds as if you will reach the YMPE/max insurable limit separately. This can result in total CPP deductions exceeding $4,230.45 and/or EI deductions exceeding $1,123.07 (or $416 in CPP2 if applicable). You reclaim the overpayment when you file your T1 return: CPP overpayment is reported on Line 44800; EI overpayment on Line 45000. The CRA refunds the excess automatically as part of your tax refund calculation. Note: if you work partly in Quebec (QPP) and partly in another province (CPP) in the same year, the CPP/QPP deductions are calculated separately and no cross-system overpayment results. Source: CRA T1 guide, Line 44800.

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Last updated: 2026-07-26 · Rates sourced from CRA T4127 — Payroll Deductions Formulas 2026