Tax · CPP enhancement
CPP2 calculator.
Since 2024, CPP has a second earnings ceiling — the YAMPE — above the familiar YMPE. Cross it and you owe a second contribution, CPP2, on top of your regular CPP.
For 2026: the first ceiling (YMPE) is $74,600; the second ceiling (YAMPE) is $85,000. Earn between them and you owe CPP2 at 4% (employee/employer each) or 8% combined if self-employed — up to $416 (employee) or $832 (self-employed) a year.
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What is CPP2?
Starting January 1, 2024, CPP added a second additional contribution — CPP2 — on earnings above the regular Year's Maximum Pensionable Earnings (YMPE), up to a new, higher Year's Additional Maximum Pensionable Earnings (YAMPE). It exists to fund a second, richer tier of the CPP enhancement for higher earners; it does not replace or reduce your regular (base) CPP contribution — it's added on top, only on the slice of income between the two ceilings.
2026 numbers
- Basic exemption: $3,500 (unchanged for decades)
- YMPE (first ceiling): $74,600 — base CPP rate 5.95% (employee/employer each) or 11.9% self-employed, max $4,230.45 employee / $8,460.90 self-employed
- YAMPE (second ceiling): $85,000 — CPP2 rate 4% (employee/employer each) or 8% self-employed, max $416 employee / $832 self-employed
Both contributions stop once their respective ceiling is reached, so a high earner's take-home pay rises once they cross $85,000 in pensionable earnings for the year.
Sources, verified 29 September 2026 (raw CRA tables, read directly): CRA — CPP contribution rates, maximums and exemptions (2026 row: YMPE $74,600, rate 5.95%, max $4,230.45/$8,460.90), CRA — Second additional CPP contribution (CPP2) rates and maximums (2026 row: YAMPE $85,000, rate 4%, max $416/$832).
Frequently asked questions
Does CPP2 replace my regular CPP contribution?
No. It's additional — a second, separate contribution that only applies to the slice of earnings between the YMPE ($74,600) and the YAMPE ($85,000) for 2026. Your base CPP contribution on the first $71,100 of contributory earnings still applies in full.
Do I owe CPP2 if I earn under $74,600?
No. CPP2 only applies to earnings above the YMPE. Below that, you pay only the base 5.95% (employee) CPP contribution.
Why did CRA add a second ceiling?
The CPP enhancement (phased in since 2019) is designed to eventually replace one-third of pensionable earnings, up to a higher earnings band, instead of one-quarter up to the old, lower ceiling. CPP2, introduced in 2024, is the mechanism that captures contributions on that new, higher band.
Is CPP2 the same in Quebec?
Quebec runs QPP2 instead, mirroring CPP2's rate and both ceilings. See our Self-Employed CPP vs QPP Calculator for the self-employed base-rate difference between the two plans.
Estimate only
Uses the confirmed 2026 basic exemption, both ceilings and both rates. Does not model multiple employers in the same year (each employer calculates CPP2 independently, so you could technically overcontribute and need to claim it back at tax time), or the income-tax deduction/credit you receive for your contribution. Confirm your exact contribution on your Notice of Assessment or pay stub.