Hong Life Calculators2026 rates and limits
| Item | Outside Quebec | Quebec |
|---|---|---|
| Basic exemption (YBE) | $3,500 | $3,500 |
| Max pensionable earnings (YMPE) | $74,600 | $74,600 |
| Base + first additional rate (employee) | CPP 5.95% | QPP 6.30% |
| Max base + first additional (employee) | $4,230.45 | $4,479.30 |
| Second additional rate, up to YAMPE $85,000 | CPP2 4% · max $416 | QPP2 4% · max $416 |
| EI rate · max insurable earnings | 1.63% · $68,900 → max $1,123.07 | 1.30% · $68,900 → max $895.70 |
| QPIP (employee) · max insurable | — | 0.430% · $103,000 → max $442.90 |
| Self-employed CPP / QPP | 11.90% + 8% CPP2 · max $8,460.90 + $832 | Both shares of QPP (12.60% + 8% QPP2) |
How it is calculated
- Pensionable earnings = earnings up to $74,600 minus the $3,500 basic exemption.
- CPP = pensionable earnings × 5.95% (QPP 6.30%).
- CPP2 = earnings between $74,600 and $85,000 × 4%.
- EI = insurable earnings up to $68,900 × 1.63% (Quebec 1.30%, because QPIP replaces part of EI).
- QPIP (Quebec) = earnings up to $103,000 × 0.430%.
Default example, $75,000 employee outside Quebec: ($74,600 − $3,500) × 5.95% = $4,230.45 CPP; ($75,000 − $74,600) × 4% = $16 CPP2; $68,900 × 1.63% = $1,123.07 EI; total $5,369.52.
The basic exemption is prorated by payroll per pay period, so a paycheque may deduct slightly differently; overpayments are refunded on your tax return.
FAQ
What is the maximum CPP contribution in 2026?
$4,230.45 for an employee (base and first additional), plus up to $416 of CPP2 — $4,646.45 in total. Self-employed people pay double: $8,460.90 plus $832.
What is the maximum EI premium in 2026?
$1,123.07 outside Quebec (1.63% of $68,900) and $895.70 in Quebec (1.30%).
Do I pay CPP2 on all my income?
No. CPP2 applies only to earnings between $74,600 and $85,000 in 2026, at 4%.
Sources (checked Nov 10, 2026): ESDC, “Maximum Benefit Amounts and Related Figures – Canada Pension Plan (2026)” (YBE $3,500, YMPE $74,600, YAMPE $85,000, rates and maximums); CRA T4127 Payroll Deductions Formulas 2026 (EI maximum $1,123.07; Quebec EI maximum $895.70; QPIP maximum $442.90); Revenu Québec, “Principal Changes for 2026” (QPP 6.30%, QPIP 0.430%, $103,000). Estimate, not tax advice.