The year’s maximum pensionable earnings for 2026 under the Canada Pension Plan (CPP) will be $74,600, up from $71,300 in 2025, the Canada Revenue Agency (CRA) has announced.
The second earnings ceiling, known as the year’s additional maximum pensionable earnings, will be $85,000 in 2026, up from $81,200 in 2025.
Earnings between the first and second earnings ceilings are subject to a second tranche of CPP contributions, also known as CPP2 contributions, as part of the plan’s expansion that began in 2019.
In 2024, the CRA introduced the second earnings ceiling, set 7% higher than the first earnings ceiling. In 2025 and every subsequent year, the second earnings ceiling is set 14% higher than the first. The 2025 increase represented the last step in the second stage of CPP expansion.
Between 2019 and 2023, both the employer and employee contribution rates up to the first earnings ceiling increased to 5.95% from 4.95% as part of the first stage of CPP expansion.
Employee and employer CPP contribution rates for 2026 remain at 5.95%, and the maximum contribution is $4,230.45 each, up from $4,034.10 in 2025. Self-employed individuals pay both the employee and employer contributions, or 11.9%, with a maximum of $8,460.90, up from $8,068.20 in 2025.
The basic exemption amount for 2026 remains $3,500.
Employee and employer CPP2 contribution rates for 2026 remain at 4%, and the maximum contribution is $416, up from $396 in 2025. The self-employed rate remains at 8%, and the maximum contribution is $832, up from $792 in 2025.
The RRSP dollar limit, which is indexed, will be $35,390 for 2027 and $33,810 for 2026, up from $32,490 for 2025.
The TFSA dollar limit, which is indexed, remains at $7,000 for 2026 but hasn’t been officially announced by the CRA.
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