CPP2 Calculator (2026)
Calculate your second-tier Canada Pension Plan (CPP2) contribution on employment income between the YMPE ($74,600) and YAMPE ($85,000) — at 4.0% for 2026.
Income & Year
Your CPP2 Contribution
Your employer matches your CPP2 contribution dollar-for-dollar.
Worked examples (2026)
| Income | CPP2 contribution |
|---|---|
| $80,000 | $216 |
| $85,000 | $416 |
| $90,000 | $416 |
| $100,000 | $416 |
| $150,000 | $416 |
How CPP2 works: The Canada Pension Plan added a second contribution tier in 2024 (CPP enhancement Phase 2). Earnings between the YMPE and YAMPE are subject to 4.0% CPP2 contributions on top of the standard CPP1 rate. Read the full explainer → CPP2 Enhancement Explained
For your full payroll picture (CPP1 + CPP2 + EI + tax) → Full CPP & EI Calculator · Payroll Deductions
CPP2 ceilings and maximums by year
CPP2 applies to the band of earnings between the first ceiling (YMPE) and the second ceiling (YAMPE). Both ceilings are indexed to average wage growth each year, so the maximum CPP2 contribution rises annually. Figures below are the employee side; your employer matches dollar-for-dollar (self-employed pay both).
| Year | First ceiling (YMPE) | Second ceiling (YAMPE) | CPP2 band | Rate | Max CPP2 (employee) |
|---|---|---|---|---|---|
| 2026 | $74,600 | $85,000 | $10,400 | 4% | $416 |
| 2025 | $71,300 | $81,200 | $9,900 | 4% | $396 |
| 2024 | $68,500 | $73,200 | $4,700 | 4% | $188 |
Self-employed workers pay both the employee and employer share, so their CPP2 maximum is double the figures above (8% across the band). Source: CRA "Second additional CPP (CPP2) contribution rates and maximums".
How CPP2 is calculated
CPP2 is a flat 4.0% on the slice of employment income that sits between the two ceilings — nothing below the YMPE ($74,600) and nothing above the YAMPE ($85,000) counts. The formula for an employee is:
Income of $80,000 (2026)
Only $5,400 sits in the CPP2 band ($80,000 − $74,600). CPP2 = $5,400 × 4.0% = $216.
Income of $85,000+ (2026)
At or above the YAMPE the full band is covered. CPP2 = ($85,000 − $74,600) × 4.0% = $416 — the annual maximum.
Frequently asked questions
What is CPP2 in 2026?
CPP2 is the second-tier Canada Pension Plan contribution introduced in 2024 as part of the CPP enhancement. For 2026, employees pay 4.0% on earnings between the first ceiling (YMPE of $74,600) and the second ceiling (YAMPE of $85,000). The maximum CPP2 contribution is $416, matched dollar-for-dollar by your employer.
Who has to pay CPP2?
Anyone with employment income above the YMPE ($74,600 for 2026) pays CPP2 on the portion of their income above that ceiling, up to the YAMPE ($85,000). Earnings below the YMPE are subject to standard CPP1 only. Quebec workers contribute to QPP (which has its own equivalent second tier, QPP2), not CPP2.
Does my employer pay CPP2 too?
Yes. CPP2 is matched 1:1 by your employer, just like CPP1. If you contribute the maximum CPP2, your employer also pays the same amount on your behalf. Self-employed Canadians pay both halves themselves (8% combined on the CPP2 band).
How much is the maximum CPP2 contribution?
The maximum CPP2 is 4.0% of the gap between the two ceilings. For 2026 that gap is $85,000 − $74,600 = $10,400, so the most an employee can pay is $416 (your employer matches it, and a self-employed person pays both sides — $832). The maximum rises each year as the YMPE and YAMPE are indexed to average wage growth.
Is CPP2 tax-deductible?
Yes. CPP2 contributions are claimed as a deduction (line 22215 on your T1) — different from CPP1, which is split between a deduction and a credit. The deduction reduces your taxable income at your marginal rate, so a high-income worker effectively recoups 30–50% of the contribution through tax savings.
Do I get CPP2 back if I over-contribute?
If you worked for more than one employer in the year and your combined CPP2 withheld exceeds the annual maximum, the CRA refunds the excess when you file your T1 (or credits it against tax owing). Each employer withholds independently, so multiple jobs are the most common reason for over-contribution.
When did CPP2 start and is it fully phased in?
The first ceiling (YMPE) has always existed; the second ceiling (YAMPE) and the 4% CPP2 contribution were introduced on 1 January 2024 as the final step of the 2019–2024 CPP enhancement. CPP2 is now fully phased in — the YAMPE is set at roughly 114% of the YMPE and both ceilings are indexed annually.
Does paying CPP2 increase my pension?
Yes. Contributions above the first ceiling build the second additional CPP, which raises the eventual retirement pension for higher earners. The CPP enhancement is designed to lift the income replacement rate from one-quarter toward one-third of covered earnings, and CPP2 extends that coverage to income between the YMPE and YAMPE.