CPP & EI Calculator Canada 2026
Calculate your exact Canada Pension Plan and Employment Insurance deductions for employees, employers, and self-employed. Updated for 2026 CRA rates.
2026 CPP & EI Rates — Quick Reference
| Deduction | Rate | Max Earnings | Max Contribution |
|---|---|---|---|
| CPP1 (Employee & Employer) | 5.95% | $74,600 YMPE | $4,230.45 each |
| CPP2 (Employee & Employer) | 4.00% | $74,600 – $85,000 | $416.00 each |
| EI (Employee) | 1.63% | $68,900 MIE | $1,123.07 |
| EI (Employer) | 2.282% | $68,900 MIE | $1,572.30 |
| QPP — Quebec | 6.40% | $74,600 YMPE | $4,550.40 |
| QPIP — Quebec | 0.494% | $98,000 | $484.12 |
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.