CPP & EI Calculator Canada 2026

2026 CPP & EI Rates — Quick Reference

Sources: CRA T4032 Payroll Deductions Tables, Service Canada — confirmed January 1, 2026.

How CPP and EI Work in Canada (2026)

Every Canadian employee pays two mandatory payroll deductions: Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums. In 2026 these continue rising as the CPP enhancement phases in and maximum insurable earnings grow with wages.

CPP1 applies at 5.95% on earnings between the $3,500 exemption and $74,600 YMPE — your employer matches this dollar-for-dollar. CPP2 adds a second 4% on earnings between $74,600 and $85,000. Unlike CPP1 which generates a 15% tax credit, CPP2 contributions are fully tax-deductible, making them more valuable at tax time.

EI premiums are 1.63% on insurable earnings up to $68,900. Once you hit the annual maximum, deductions stop entirely — giving higher earners a noticeable take-home pay increase in Q3 or Q4.

Quebec residents pay into QPP rather than CPP (at the higher rate of 6.40%), plus QPIP at 0.494% which covers parental benefits. Their EI rate is reduced to 1.31% to reflect QPIP’s coverage.

CPP now has two ceilings, not one

This is the change that surprises most people looking at a 2026 pay stub. CPP enhancement introduced a second earnings ceiling, so contributions now happen in two stages:

Combined, an employee earning $85,000 or more contributes a maximum of $4,646.45 to CPP in 2026. Your employer matches every dollar of it — the true cost of CPP on your employment is double what your stub shows.

EI, and why Quebec is different

Employment Insurance is simpler: 1.63% of insurable earnings up to $68,900, for a maximum employee premium of $1,123.07. There is no basic exemption — you pay from the first dollar. Employers pay 1.4 times the employee rate, so EI costs your employer about $1,572 at the maximum.

Quebec workers pay a lower EI rate of 1.31%. This is not a discount — Quebec runs its own parental insurance plan (QPIP), which covers maternity and parental benefits that EI provides elsewhere. Quebec employees pay a separate QPIP premium instead, and contribute to the Quebec Pension Plan rather than CPP. If you work in Quebec, the CPP figures above do not describe your deductions.

If you are self-employed, you pay both halves

There is no employer to match you, so you pay the employee and employer share of CPP: 11.90% on CPP1 earnings and 8.00% on CPP2. That is a maximum of $8,460.90 plus $832.00 — up to $9,292.90 for 2026. Half of it is deductible on your return, and the other half generates a tax credit.

EI works the other way: self-employed people are not required to pay EI and are not covered by regular EI benefits. You may opt in voluntarily for special benefits such as maternity, parental, sickness and compassionate care — but once you opt in and claim, you generally cannot opt back out. Budget for CPP either way; it is the single largest surprise in a first year of self-employment.

When contributions stop, and why your pay rises late in the year

Both CPP and EI stop once you hit the annual maximum, which is why higher earners see their take-home pay jump partway through the year and drop again every January. Someone earning $120,000 typically maxes EI around August and CPP shortly after — their autumn paycheques are noticeably larger than their spring ones, with no change in salary.

If you changed jobs mid-year, check your T4s. Each employer restarts the count from zero and deducts as though they were your only employer, so it is common to over-contribute. CPP over-contributions are refunded when you file; excess EI premiums are refunded the same way. Nobody flags this for you — it only comes back if the return is filed correctly.

CPP & EI — Frequently Asked Questions