The 2026 thresholds
For 2026, the first Canada Pension Plan earnings ceiling is $74,600. Contributions apply to pensionable earnings above the $3,500 basic exemption, with the standard contribution rate divided equally between employee and employer.
A second additional CPP component applies to pensionable earnings between $74,600 and $85,000. It affects only workers whose annual earnings exceed the first ceiling.
Payroll scope
The CPP applies outside Quebec, where the Quebec Pension Plan operates. The annual limits affect payroll deductions, matching employer contributions and compensation budgeting across the year.