CPP, CPP2 and EI Deductions in 2026: Rates and Maximums

Besides income tax, most paycheques have Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums taken off.

2026 rates outside Quebec

Deduction	Employee rate	Earnings covered	Maximum
CPP	5.95%	$3,500 – $74,600	$4,230.45
CPP2	4%	$74,600 – $85,000	$416.00
EI	1.63%	Up to $68,900	$1,123.07

Employers match CPP and CPP2 and pay 1.4 times the employee EI premium. Self-employed people pay both halves of CPP.

Deduction	Employee rate	Earnings covered	Maximum
QPP	6.30%	$3,500 – $74,600	$4,479.30
QPP2	4%	$74,600 – $85,000	$416.00
EI (Quebec rate)	1.30%	Up to $68,900	$895.70
QPIP	0.430%	Up to $103,000	$442.90

Quebec’s EI rate is lower because the Quebec Parental Insurance Plan (QPIP) pays parental benefits instead of EI.

Base CPP/QPP contributions (4.95% of the 5.95% CPP rate) earn a non-refundable tax credit.
Enhanced CPP/QPP — the extra 1% and all of CPP2/QPP2 — is deducted from income, saving tax at your marginal rate.
EI and QPIP premiums earn a non-refundable federal tax credit.

Once you reach the maximum for the year, the deduction stops and your paycheques get bigger. High earners often see this in the fall.

The federal government announced that the base CPP rate will drop from 4.95% to 4.75% for employees in 2027. The enhanced rates are unchanged.

See your own deductions in the income tax calculator.