CPP2 2026
CPP2 is a second CPP contribution that applies only to earnings between the two pensionable-earnings ceilings. It started in 2024, it appears as its own line on your pay stub, and it catches a lot of people out mid-year.
2026 CPP2 figures
| Earnings where CPP2 starts (YMPE) | $74,600 |
|---|---|
| Earnings where CPP2 stops (YAMPE) | $85,000 |
| Band CPP2 applies to | $10,400 |
| Rate | 4% |
| Maximum employee contribution | $416 |
Why it appears part-way through the year
CPP2 only starts once your year-to-date earnings pass $74,600. If you earn more than that, your regular CPP line stops and a CPP2 line appears in its place — so a mid-year pay stub can look very different from a January one even though nothing about your salary changed.
How it is taxed
The whole CPP2 contribution is a deduction from taxable income — none of it is a tax credit. On a $80,000 salary the CPP2 contribution is $216.00.
Common questions
What is the maximum CPP2 contribution in 2026?
$416, reached once your earnings hit $85,000.
Do I pay CPP2 if I earn under the first ceiling?
No. CPP2 applies only to earnings above $74,600. Below that you pay regular CPP only.
Is CPP2 the same in Quebec?
Yes — the QPP charges the same 4% on the same band, up to the same $416 maximum.
Sources: Canada Revenue Agency — T4127 Payroll Deductions Formulas (122nd and 123rd editions, 2026) and the published 2026 federal, provincial and territorial rate tables; Revenu Québec — 2026 income tax rates and the 2026 source-deduction parameters. Rates verified 9 August 2026.
Figures are computed from those published rates by our own engine, which is validated against the CRA’s Payroll Deductions Online Calculator. See how we calculate.