What is CPP2?
CPP2 — the second additional CPP contribution — was introduced in 2024 as an extra tier on top of base CPP. It only applies to earnings above the YMPE (Year's Maximum Pensionable Earnings), up to a second, higher ceiling called the YAMPE (Year's Additional Maximum Pensionable Earnings). If your income is below the YMPE, CPP2 doesn't apply to you at all — you only pay base CPP.
2026 CPP & CPP2 numbers
| Component | 2026 figure |
|---|---|
| Basic exemption | $3,500 |
| YMPE (base CPP ceiling) | $74,600 |
| Base CPP rate | 5.95% |
| Maximum base CPP | $4,230.45 |
| YAMPE (CPP2 ceiling) | $85,000 |
| CPP2 rate | 4% |
| Maximum CPP2 | $416.00 |
| Maximum total CPP (employee) | $4,646.45 |
Worked example
Say you earn $90,000 in 2026. Base CPP applies to income between $3,500 and $74,600 at 5.95%, hitting its max of $4,230.45. CPP2 then applies to the next band — from $74,600 up to your income (capped at $85,000) — at 4%. On $90,000, you're above the $85,000 YAMPE, so you pay the full $416.00 of CPP2. Total CPP: $4,646.45.
Why CPP2 exists
CPP2 was phased in (2024–2025) to gradually increase how much of a higher earner's income is covered by CPP, boosting retirement benefits for those who contribute at the higher tier. It's separate from — and in addition to — the base CPP contribution most people are already familiar with.
Frequently asked questions
Do I pay CPP2 if I earn under $74,600?
No. CPP2 only applies to income above the YMPE ($74,600 in 2026). Below that, you only pay base CPP.
What if I'm self-employed?
Self-employed workers pay both the employee and employer portions — effectively double the rate on both base CPP and CPP2. Check the box above to see that estimate.
Is Quebec's QPP the same?
Quebec runs its own plan (QPP) rather than CPP, but it mirrors the same 2026 thresholds and CPP2-equivalent second tier.
Is this official CRA guidance?
No. Calcova is an independent estimator using published 2026 CPP/CPP2 figures. Not tax advice — verify with the CRA or a tax professional.
Related calculators
FHSA vs RRSP calculator → — compare which account gets you further toward a first home.
Take-home pay calculator → — see your full paycheck after CPP, EI and tax.