Every January, CPP deductions restart on your paycheque — and at some point during the year, depending on your salary, they quietly stop again. When CPP contributions max out depends entirely on what you earn, and since 2024 there’s an extra wrinkle: a second-tier contribution called CPP2 means higher earners now see their deductions wind down in stages rather than all at once. Here’s exactly how the 2026 ceilings work, when yours will hit, and what to do with the freed-up cash.
CPP Has Two Ceilings in 2026
Base CPP contributions are 5.95% of your earnings between the $3,500 basic exemption and the Year’s Maximum Pensionable Earnings (YMPE) of $74,600 — a maximum of $4,230.45 for the year. Earn more than that, and the second additional contribution (CPP2) takes over: 4% of earnings between $74,600 and the second ceiling of $85,000, adding at most $416. Your employer matches both, dollar for dollar. Full details live on our Canada Pension Plan page.
| Item | 2026 Figure |
|---|---|
| Base CPP rate | 5.95% (employee) on earnings between $3,500 and $74,600 |
| Maximum base contribution | $4,230.45 |
| CPP2 rate | 4% on earnings between $74,600 and $85,000 |
| Maximum CPP2 contribution | $416 |
| Combined maximum (employee) | $4,646.45 |
| Self-employed rates / maximum | 11.9% + 8% (both sides) / $9,292.90 |
All figures verified against official CRA publications — see the CRA contribution rates and maximums for source documents.
The Three-Stage Wind-Down
If you earn above $85,000, your CPP deductions don’t just stop — they step down in a sequence most people never have explained to them:
- Stage 1 — base CPP all year until you hit $74,600 in earnings. The familiar 5.95% deduction on every cheque.
- Stage 2 — CPP2 takes over. The moment your year-to-date earnings cross the YMPE, the 5.95% deduction ends and a smaller 4% deduction begins. Your net pay rises, but not all the way.
- Stage 3 — everything stops. When earnings reach $85,000, CPP2 is maxed too, and CPP disappears from your stub until January.
This staged pattern is the reason so many people think payroll has made a mistake. Nothing has gone wrong: it is simply the point at which base CPP contributions max out and the second tier begins.
When CPP Contributions Max Out, by Salary
Assuming pay is spread evenly across the year, here’s roughly when each stage arrives:
| Annual Salary | Base CPP Stops (5.95% → 4%) | CPP2 Stops (4% → 0%) |
|---|---|---|
| $74,600 or less | Never — deductions run all year | Doesn’t apply |
| $80,000 | Early December | Doesn’t finish before year-end |
| $90,000 | End of October | Mid-December |
| $100,000 | End of September | Early November |
| $120,000 | Mid-August | Mid-September |
| $150,000 | Beginning of July | Late July |
Bonuses and commissions are pensionable earnings, so a big payout early in the year pulls every date forward — which means CPP contributions max out sooner than the table suggests for anyone with a lumpy pay pattern. And if you’re reading this in late July at a $150,000 salary, this is your week: CPP2 is finishing up and your next cheque will be noticeably larger. Check the per-cheque effect for your own numbers with the Payroll Calculator.
Worked Example: a $95,000 Salary
At $95,000, you pay the full base contribution of $4,230.45 — the last of it coming off around mid-October — then CPP2 kicks in at 4% until your earnings reach $85,000 in late November, adding the full $416. Total for the year: $4,646.45, matched by your employer.
From late November through December, your cheques carry no CPP at all. Combined with the EI maximum you hit back in September, your December net pay runs meaningfully higher than January’s — the annual “year-end raise” that isn’t really a raise. It is worth planning for in both directions: the months after your CPP contributions max out are the cheapest of the year, and January is the most expensive.
What that extra money is worth after tax depends on your bracket. If you are redirecting it to an RRSP, the deduction is worth your marginal rather than average tax rate, which for most people in this salary band is around 30 to 43 percent.
Self-Employed? You Pay Both Sides
Self-employed Canadians cover both the employee and employer portions: 11.9% base plus 8% CPP2, to a combined maximum of $9,292.90 in 2026. There’s no payroll deduction — it’s calculated on your tax return and typically paid through instalments, so there is no visible moment when contributions max out. You simply reach the annual ceiling and stop accruing.
The one silver lining: half of your contribution (the “employer” share) is a tax deduction rather than a credit, which lowers your taxable income directly.
What You Get For It
It’s worth saying plainly: CPP isn’t a tax that vanishes. Contributions build your retirement pension, and the enhanced tiers you’ve been paying since 2019 — including CPP2 — are gradually raising the income replacement rate from 25% to 33% of pensionable earnings. Higher ceilings mean higher contributions today, but also a larger pension cheque later. CPP also carries disability and survivor benefits most people forget they’re insured for.
Both ceilings are indexed to average wage growth, so they rise most Januaries. That means the salary at which CPP contributions max out climbs a little each year, and the date shifts later for anyone whose pay is flat.
Frequently Asked Questions
When do CPP contributions max out in 2026?
Base CPP contributions max out once your earnings reach $74,600, and CPP2 finishes at $85,000. For a $100,000 salary paid evenly, that is roughly the end of September and early November respectively.
Do CPP deductions restart in January?
Yes — both ceilings reset on January 1, and the full 5.95% deduction returns on your first cheque of the year. Budget for the drop if you maxed out early.
I changed jobs mid-year and my deductions started over. Do I lose that money?
No. Each employer must deduct from dollar one, but anything you overpay above the annual maximum comes back as a credit when you file your tax return.
Why did my EI deductions stop before my CPP?
EI’s ceiling ($68,900 in 2026) is lower than CPP’s ($74,600), so EI always maxes out first at the same salary. Here’s the full EI breakdown.
Can I opt out of CPP?
Not while you’re under 65. Between 65 and 70, if you’re already collecting your CPP retirement pension, you can file Form CPT30 to stop contributing; at 70, contributions end automatically.
Is CPP2 deductible?
Yes — CPP2 and the enhanced portion of base CPP are tax deductions (they reduce taxable income), while the original base portion earns a non-refundable credit. Our guide to the CPP2 deduction covers this in detail.
Does CPP apply to teenagers and seniors?
Contributions apply from age 18 to 70. Workers under 18 pay no CPP regardless of earnings — one reason a student’s summer paycheque can look surprisingly healthy.
All rates verified against official CRA publications. Last updated: July 2026.