How this calculator works
Enter the year's pensionable earnings and whether you are an employee or self-employed. Contributory earnings are the part of income above the $3,500 basic exemption up to the 2026 Year's Maximum Pensionable Earnings of $74,600. The base CPP contribution is 5.95% of that amount. CPP2, the second additional contribution, is 4% of earnings above $74,600 up to the Year's Additional Maximum Pensionable Earnings of $85,000, and nothing is charged above $85,000. An employee pays one share and the employer pays a matching share. A self-employed person pays both shares, which is why the amount shown for them is double. The page does not model the Quebec Pension Plan, the CPP deduction on a self-employed return, the enhanced portion of the deduction, or the lower contribution that applies in the year you turn 18 or 70. It also ignores any second job, where each employer withholds as if it were the only one.
Formula
Contributory earnings = max(0, min(income, $74,600) - $3,500). Base contribution = contributory earnings x 5.95%. CPP2 = max(0, min(income, $85,000) - $74,600) x 4%. Employee contribution = base + CPP2. Self-employed contribution = 2 x (base + CPP2).
Worked example
On $60,000 of pensionable earnings, contributory earnings are $56,500. The base contribution is $56,500 x 5.95%, or $3,361.75, and there is no CPP2 because earnings are below $74,600. An employee pays $3,361.75 and the employer pays the same. At $85,000 the base contribution is $71,100 x 5.95%, or $4,230.45, and CPP2 is $10,400 x 4%, or $416.00, so a self-employed person pays $9,292.90.
Frequently asked questions
What is CPP2?
The second additional Canada Pension Plan contribution, which started in 2024. It applies at 4% to earnings above the Year's Maximum Pensionable Earnings and up to the Year's Additional Maximum Pensionable Earnings.
Why do self-employed people pay double?
An employee and an employer each pay one share. A self-employed person has no employer, so they pay both shares themselves.
Is the contribution tax deductible?
An employee claims a tax credit for the base contribution and a deduction for the enhanced part. A self-employed person deducts both shares. This page shows the contribution, not the tax treatment.
What happens above $85,000?
Nothing further is charged. Earnings above the Year's Additional Maximum Pensionable Earnings are not pensionable.