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Since 2024, CPP comes in two parts — base CPP and additional CPP2. Here’s the difference and who pays what.
| CPP (base) | CPP2 (additional) | |
|---|---|---|
| Rate | 5.95% | 4% |
| Applies to earnings | $3,500 – $74,600 | $74,600 – $85,000 |
| Maximum annual contribution | $4,230.45 | $416.00 |
| Who pays it | Everyone earning above $3,500 | Only those earning above $74,600 |
Why CPP2 exists
CPP2 was introduced in 2024 as part of a multi-year CPP enhancement plan, designed to gradually increase retirement benefits for higher earners by adding a second earnings ceiling above the traditional YMPE.
Do I pay CPP2?
Only if your annual income exceeds $74,600. If you earn $74,600 or less, CPP2 doesn’t apply to you at all — you only pay base CPP.
Quebec: QPP and QPP2
Quebec has an equivalent structure — QPP (6.30% base) and QPP2 (4% additional) — using the same earnings thresholds. See our Quebec paycheck calculator.
See CPP2 in your own paycheque
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Independent estimate based on 2026 CRA federal/provincial payroll formulas, Revenu Québec figures, and published CPP/CPP2/QPP/QPP2, EI and QPIP rates. Not affiliated with the Canada Revenue Agency or the Government of Canada. Actual payroll may differ based on your employer’s specific deductions, benefits, TD1 claim amounts, and other factors. This tool does not constitute tax or financial advice.
Related guides
CPP Calculator · How Canadian Paychecks Are Calculated