{"id":255977,"date":"2025-11-02T04:25:18","date_gmt":"2025-11-02T04:25:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/255977\/"},"modified":"2025-11-02T04:25:18","modified_gmt":"2025-11-02T04:25:18","slug":"cra-announces-cpp-maximum-pensionable-earnings-for-2026","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/255977\/","title":{"rendered":"CRA announces CPP maximum pensionable earnings for 2026"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/800x600_announcement_news_530986105_iStockPhoto-1.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\" alternate text for this image\" style=\"object-fit:cover;\"  \/><\/p>\n<p>The year\u2019s maximum pensionable earnings for 2026 under the Canada Pension Plan (CPP) will be $74,600, up from $71,300 in 2025, <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/registered-plans-administrators\/whats-new.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">the Canada Revenue Agency (CRA) has announced<\/a>.<\/p>\n<p>The <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/payroll\/calculating-deductions\/making-deductions\/second-additional-cpp-contribution-rates-maximums.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">second earnings ceiling<\/a>, known as the year\u2019s additional maximum pensionable earnings, will be $85,000 in 2026, up from $81,200 in 2025.<\/p>\n<p>Earnings between the first and second earnings ceilings are subject to a second tranche of CPP contributions, also known as <a href=\"https:\/\/www.investmentexecutive.com\/inside-track_\/jamie-golombek\/get-ready-for-cpp2\/\" rel=\"nofollow noopener\" target=\"_blank\">CPP2<\/a> contributions, as part of the plan\u2019s expansion that began in 2019.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>The basic exemption amount for 2026 remains $3,500.<\/p>\n<p>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.<\/p>\n<p>The RRSP dollar limit, which is indexed, will be $35,390 for 2027 and $33,810 for 2026, up from $32,490 for 2025.<\/p>\n<p>The TFSA dollar limit, which is indexed, <a href=\"https:\/\/www.advisor.ca\/industry-news\/tfsa-dollar-limit-to-hold-steady-in-2026\/\" rel=\"nofollow noopener\" target=\"_blank\">remains at $7,000 for 2026<\/a>\u00a0but hasn\u2019t been officially announced by the CRA.<\/p>\n<p>\n                Subscribe to our newsletters\n            <\/p>\n<p>            <img loading=\"lazy\" decoding=\"async\" width=\"401\" height=\"401\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/Advisor-Logo-Social-X-and-Linkedin-100.jpg\" class=\"attachment-full size-full wp-post-image\" alt=\"Advisor.ca staff\" title=\"Advisor-Logo-Social-X and Linkedin -100\"  \/>          <\/p>\n<p class=\"author__name\">Staff<\/p>\n<p>The staff of Advisor.ca have been covering news for financial advisors since 1998.<\/p>\n","protected":false},"excerpt":{"rendered":"The year\u2019s maximum pensionable earnings for 2026 under the Canada Pension Plan (CPP) will be $74,600, up from&hellip;\n","protected":false},"author":2,"featured_media":255978,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":{"0":"post-255977","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/255977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=255977"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/255977\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/255978"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=255977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=255977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=255977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}