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CPP2 is a 4% contribution on pensionable earnings between $76,700 and $87,400 in 2027. The maximum is $428 for an employee and $856 for the self-employed, up from $416 and $832 in 2026. Workers who earn less than $76,700 pay none. Here are examples and the 2026 comparison.
What is the second additional CPP contribution (CPP2) in 2027?
CPP2 is the second additional Canada Pension Plan contribution. It is charged at 4% on pensionable earnings between two ceilings. For 2027 the first ceiling (YMPE) is $76,700 and the second (YAMPE) is $87,400, so the band is $10,700 wide.
The CRA's CPP2 page, modified 9 November 2026, lists a maximum of $428 for the employee and for the employer, and $856 for a self-employed person. Our check: ($87,400 - $76,700) x 4% = $428.00. In 2026 the band was $10,400 and the maximum was $416.
Who pays CPP2 in 2027?
Only people with pensionable earnings above $76,700 pay anything. A worker at $70,000 pays CPP at the usual rate and no CPP2. The CPP2 contribution starts on the first dollar over the first ceiling, and the maximum is reached at $87,400. Earnings above that carry no more CPP or CPP2.
Employees pay half through payroll deductions, and the employer matches it. Self-employed people pay both halves when they file. Quebec residents contribute to the Quebec Pension Plan instead, and the 2027 QPP figures were not published on 12 November 2026, so this page does not give them. Our QPP and QPIP 2027 article tracks them.
How much CPP2 would you pay at different salaries?
This table is our arithmetic using the official 4% rate and the two 2027 ceilings. It shows the employee share only, and is an example, not a payroll calculation.
| Pensionable earnings in 2027 | CPP2 contribution (employee share) |
|---|---|
| $70,000 | $0.00 |
| $76,700 | $0.00 |
| $80,000 | $132.00 |
| $85,000 | $332.00 |
| $87,400 | $428.00 |
| $95,000 | $428.00 |
Someone earning $80,000 pays $132.00 in CPP2. At $85,000 it is $332.00. At or above $87,400 it stays at $428.00.
How does 2027 compare with 2026?
The CPP rate falls in 2027 and the ceilings rise. The CRA lists the CPP rate as 5.75% for 2027, against 5.95% in 2026. The maximum CPP drops to $4,209.00 from $4,230.45, while CPP2 rises $12 to $428. Together, the maximum goes down by $9.45. The totals are our sums.
| 2026 | 2027 | |
|---|---|---|
| CPP maximum (employee) | $4,230.45 | $4,209.00 |
| CPP2 maximum (employee) | $416.00 | $428.00 |
| Total CPP plus CPP2 | $4,646.45 | $4,637.00 |
| Self-employed CPP2 | $832.00 | $856.00 |
Source for the figures: CRA CPP rates and maximums and CRA CPP2 rates and maximums, checked 12 November 2026.
What does a self-employed person pay for CPP2?
A sole proprietor pays both the employee and the employer share, so the 2027 CPP2 maximum is $856. The CRA lists CPP at up to $8,418.00 for the self-employed. Our sum of the two is $9,274.00. The base CPP maximum already uses the lower 5.75% rate.
The amounts are based on net business income between the ceilings. If you have both employment and self-employment income, the ceilings are shared across all your CPP-pensionable earnings, which is why your return can show a refund of overpaid CPP. See our self-employed CPP 2027 page for more on the profit-based bill.
When will you see CPP2 on your pay stub?
CPP2 appears when your year-to-date pensionable earnings pass $76,700. A person paid evenly across 12 months at $100,000 a year crosses the first ceiling in the ninth pay month, because $76,700 / ($100,000 / 12) is 9.2. After that, CPP2 comes off until $428 is reached, and then both CPP and CPP2 stop.
The result is that take-home pay can rise toward year end for high earners, because the deductions stop. That is an example based on equal monthly pay and one employer. Bonuses can reach the ceiling earlier.
What if you work for two employers?
Each employer withholds CPP as if it were your only employer. Take a person with two jobs paying $50,000 each in 2027. Each employer deducts 5.75% of ($50,000 - $3,500), which is $2,673.75, so the two together take $5,347.50. The maximum is $4,209.00, so the overpayment is $1,138.50. This is an example with our arithmetic.
The overpayment comes back when you file, through the CPP schedule of the return, as a refund or as a credit against tax owing. The same logic applies to CPP2 when the two jobs together pass the ceilings. The CRA explains the schedule on its page for CPP contributions on the return, so check it before you rely on our example.
Where do you find CPP2 on your T4?
The T4 slip shows regular CPP contributions in box 16 and the second additional contributions in a separate box, 16A. Pensionable earnings are in box 26. If you were paid more than $76,700 in 2027 and your T4 has nothing in 16A, ask your employer or check the pay stubs. Your 2027 T4 arrives by the end of February 2028, since employers have until then.
Self-employed people do not get a T4 for their own business. They calculate CPP and CPP2 on the return, using net self-employed income. The figures to expect for 2027 are the $8,418.00 and $856 maximums in the CRA tables.
How much do CPP and CPP2 together change from 2026 to 2027?
The combined effect depends on where you sit against the ceilings. Our sums apply the official rates and ceilings to a full year of earnings with one employer.
| Pensionable earnings | 2026 CPP + CPP2 | 2027 CPP + CPP2 | Difference |
|---|---|---|---|
| $70,000 | $3,956.75 | $3,823.75 | $-133.00 |
| $76,000 | $4,286.45 | $4,168.75 | $-117.70 |
| $80,000 | $4,446.45 | $4,341.00 | $-105.45 |
| $90,000 | $4,646.45 | $4,637.00 | $-9.45 |
People earning around $70,000 to $76,000 pay less in 2027, because the lower 5.75% rate applies and the CPP2 band starts higher. People above $87,400 pay $9.45 less. The table is an example and ignores EI and income tax.
What mistakes do people make with CPP2?
The first is assuming CPP2 applies from the first dollar. It does not: below $76,700 you pay none. The second is forgetting that the self-employed pay both shares, so their maximum is double. The third is comparing 2027 with a different year. The 2026 figures are $85,000 and $416, and the CRA lists both years side by side on the CPP2 page.
A fourth mistake is using a payroll estimate from a website with older rates. CPP in particular changed rate for 2027, and some commentary still shows the 2026 rate of 5.95%. Use the CRA tables.
What is still unknown about 2027 payroll?
The CRA has not posted 2027 payroll deduction tables or TD1 forms as of 12 November 2026, and the 2027 federal brackets and basic personal amount are missing too. Read the 2027 payroll deductions page for the full list of confirmed ceilings, and the 2027 tax questions hub for open items.
Frequently asked questions
What is the CPP2 maximum for 2027?
The CRA lists $428 for the employee and $428 for the employer in 2027, and $856 for a self-employed person. It is 4% of the band between the first ceiling of $76,700 and the second ceiling of $87,400.
Does CPP2 replace CPP?
No. CPP2 is charged on top of regular CPP, but only on earnings above the first ceiling. Below $76,700 you pay CPP only. Above that, CPP stays at its maximum while CPP2 grows until $87,400.
What is the CPP rate for 2027?
The CRA shows 5.75% for 2027, down from 5.95% in 2026. The maximum employee and employer contribution is $4,209.00, based on maximum contributory earnings of $73,200 after the $3,500 basic exemption.
Do Quebec workers pay CPP2?
No. Quebec has its own Quebec Pension Plan with its own rates and ceilings. The QPP 2027 figures were not published on the sites we could read on 12 November 2026, so check Revenu Quebec and Retraite Quebec.
When does CPP2 stop in the year?
It stops once you have paid the $428 maximum, which happens after pensionable earnings reach $87,400 in 2027. Payroll tracks this per employer, so if you change jobs mid-year you can overpay and get it back on your tax return.