CPP and EI Maximums (2026): Where Your Payroll Deductions Stop
Both are capped. EI stops at $68,900 of earnings and CPP at $85,000, so an employee outside Quebec pays at most $5,770 for the year, and a Quebec employee $6,234. Past those ceilings your deductions simply stop.
Income tax climbs through brackets as you earn more. Payroll contributions do the reverse: they are charged at a flat rate until a ceiling and then stop entirely. Knowing where the ceilings sit explains why a raise feels different at $60,000 than at $90,000, and why a January paycheque is smaller than a December one.
The 2026 rates and ceilings
| Outside Quebec | Rate | On earnings | Maximum |
|---|---|---|---|
| CPP base | 5.95% | $3,500 to $74,600 | $4,230 |
| CPP2 | 4% | $74,600 to $85,000 | $416 |
| Employment insurance | 1.63% | Up to $68,900 | $1,123 |
| Total employee contributions | $5,770 |
The first $3,500 of earnings is exempt from CPP but not from EI, which starts at the first dollar. Your employer matches CPP exactly and pays 1.4 times your EI premium, so the true cost of employing you is higher than the deduction on your payslip.
The marginal rate in each band
What each additional dollar of salary costs in payroll contributions depends entirely on which band it falls in:
2026 rates. Employee share only; the employer pays the same CPP again and 1.4 times the EI premium. Income tax applies on top in every band.
The heaviest band is $3,500 to $68,900, where both plans apply at a combined 7.58%. Above $85,000 the rate is zero, which is why the marginal cost of a raise falls at higher salaries even as the income tax rate rises. Our $200k after taxes page shows the whole curve.
Quebec pays a different bill
| At the ceilings | Outside Quebec | Quebec |
|---|---|---|
| Pension plan, base | $4,230 | $4,479 |
| Second tier | $416 | $416 |
| Employment insurance | $1,123 | $896 |
| Parental insurance (QPIP) | None | $443 |
| Total | $5,770 | $6,234 |
Quebec runs its own pension plan and its own parental insurance plan, and its QPP rate of 6.30% is above the CPP rate of 5.95%. The lower EI rate gives some of that back. Net, a Quebec employee at the ceilings pays $464 more, and receives a more generous parental leave scheme in exchange, with benefits available to self-employed workers who are not covered for the same leave elsewhere.
Self-employment, and two jobs
A self-employed worker pays both halves of CPP: 11.90% on base earnings and 8% on the CPP2 band, up to $9,293. Half is deductible against income tax and the rest is a credit. EI is optional and, if you opt in, covers only special benefits such as parental, sickness and caregiving leave, never regular unemployment benefits.
With two employers in a year, each applies the ceilings from scratch, so you can pay more than the maximum. The excess comes back as a credit when you file; no employer can prevent it, because none of them can see what the others withheld.
What the contributions buy
CPP is a defined benefit funded by those contributions. The enhancement that began in 2019, and the CPP2 tier added in 2024, are gradually lifting the share of pre-retirement earnings the plan replaces from a quarter toward a third, on a higher band of earnings than before. The cost is visible now and the benefit arrives decades later, which is why the deduction grew faster than wages over the last several years.
For what all of it leaves you, run a salary through the income tax calculator, or see the salary needed to take home $100,000.
Frequently asked questions
What is the maximum CPP contribution for 2026?
$4,646 for an employee: $4,230 of base contributions at 5.95% on earnings between the $3,500 exemption and $74,600, plus $416 of CPP2 at 4% on earnings from $74,600 to $85,000. Your employer matches it.
What is the maximum EI premium for 2026?
$1,123 outside Quebec, at 1.63% of insurable earnings up to $68,900. In Quebec the rate is 1.30%, so the maximum is $896, because Quebec runs its own parental insurance plan. Employers pay 1.4 times the employee premium.
At what income do CPP and EI stop?
EI stops once insurable earnings reach $68,900 and CPP once pensionable earnings reach $85,000. Above that, every further dollar of employment income meets income tax alone, which is why take-home improves faster at higher salaries.
What is CPP2?
A second tier of contributions introduced in 2024, charged at 4% on earnings between the first ceiling of $74,600 and the second of $85,000. It adds up to $416 a year for an employee and buys a higher CPP benefit in retirement.
Do Quebec residents pay more?
$464 more at the ceilings. Quebec's QPP rate of 6.30% is higher than CPP's 5.95%, and Quebec adds the parental insurance plan at 0.43% up to $103,000. Its EI rate is lower to compensate, at 1.30% rather than 1.63%, but not by enough to close the gap.
Do self-employed people pay CPP?
Yes, both halves: 11.90% on base earnings and 8% on the CPP2 band, for a maximum of $9,293. EI is optional for the self-employed and covers only special benefits such as parental and sickness leave, not regular unemployment benefits.
Does an RRSP contribution reduce CPP or EI?
No. Both are charged on employment income before any RRSP deduction. An RRSP contribution reduces income tax only, which is why the saving is your marginal income tax rate rather than that plus the payroll rates.
Can I get overpaid CPP or EI back?
Yes. With more than one employer in a year, each withholds against the ceilings on its own, so you can exceed the maximum. The overpayment is credited on your return. It cannot be fixed through payroll, because no employer can see what another has withheld.
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Researching and writing about Canadian personal finance since 2026.
Last reviewed October 2026 · How we research
“CPP and EI Maximums (2026): Where Your Payroll Deductions Stop.” Vault Nerd, https://www.vaultnerd.com/ca/learn/cpp-ei-maximums, updated October 2026.
- 2026 CPP maximum pensionable earnings of $74,600, second ceiling of $85,000, the $3,500 basic exemption, and rates of 5.95% and 4%
- 2026 EI maximum insurable earnings of $68,900 at 1.63%, and 1.30% in Quebec
- Retraite Québec and Revenu Québec: QPP rate of 6.30% and QPIP at 0.43% to $103,000
No product is reviewed on this page and Vault Nerd has no affiliate relationship in this category. Figures checked October 2026.