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For 2027 the CRA shows a CPP ceiling of $76,700 at 5.75%, a CPP maximum of $4,209.00, CPP2 up to $87,400 at 4% with a $428 maximum, and EI at 1.64% on $70,800 with a $1,161.12 maximum. Income tax tables, TD1 forms and Quebec plan figures are not published yet.
What payroll deduction limits are confirmed for 2027?
The CRA has posted new 2027 rows for the Canada Pension Plan (CPP), the second additional CPP contribution (CPP2) and Employment Insurance (EI). The table sets them beside 2026. The last column is our own subtraction.
| Item | 2026 | 2027 | Change (our sum) |
|---|---|---|---|
| CPP: earnings ceiling (YMPE) | $74,600 | $76,700 | $2,100 |
| CPP: basic exemption | $3,500 | $3,500 | $0 |
| CPP: maximum contributory earnings | $71,100 | $73,200 | $2,100 |
| CPP: rate, employee and employer | 5.95% | 5.75% | lower |
| CPP: maximum, employee or employer | $4,230.45 | $4,209.00 | -21.45 |
| CPP2: second ceiling (YAMPE) | $85,000 | $87,400 | $2,400 |
| CPP2: rate | 4% | 4% | same |
| CPP2: maximum, employee or employer | $416 | $428 | +12 |
| EI: maximum insurable earnings | $68,900 | $70,800 | $1,900 |
| EI: rate outside Quebec | 1.63% | 1.64% | higher |
| EI: maximum employee premium | $1,123.07 | $1,161.12 | +38.05 |
| EI: maximum employer premium | $1,572.30 | $1,625.57 | +53.27 |
| EI: Quebec rate | 1.30% | 1.29% | lower |
The CRA CPP and CPP2 pages show a page date of November 9, 2026. The EI page shows an older date, but its 2027 row is there and matches the Employment and Social Development Canada summary of 2027 premiums. We checked all three in November 2026.
How is CPP worked out in 2027?
CPP is charged on pay between the basic exemption and the earnings ceiling. For 2027 the exemption is $3,500 and the ceiling is $76,700, so the amount that counts is at most $73,200. At 5.75% that gives a maximum of $4,209.00 for the employee and the same for the employer. In 2026 the rate is 5.95%, so the 2027 maximum is actually $21.45 lower even though the ceiling is higher.
The CPP rate is the sum of the base part and the first additional part. The CRA shows the combined rate, and we do not split it here beyond saying it is 5.75% in total. Workers in Quebec contribute to the Quebec Pension Plan (QPP) instead, and the 2027 QPP figures are not on a page we could confirm. Our article on CPP ceilings and maximums for 2027 goes deeper.
What is CPP2 and who pays it?
CPP2 applies to earnings above the first ceiling, up to a second ceiling. For 2027 that band runs from $76,700 to $87,400, which is $10,700 wide. The rate is 4%, so the maximum is $428.00 for the employee and the same for the employer. The calculation is $10,700 times 4%, and we checked it in code. Self-employed people pay both halves, which we explain on our page about self employed CPP in 2027.
If you earn less than $76,700 you pay no CPP2 at all. It is the reason higher earners see an extra line on the pay stub late in the year, after they pass the first ceiling.
How much is EI in 2027?
For 2027 the maximum insurable earnings are $70,800 and the federal rate is 1.64%. The maximum employee premium is $1,161.12. Employers pay 1.4 times the employee amount, which gives a maximum of $1,625.57. In Quebec the employee rate is 1.29% because the province runs its own parental insurance. The extra EI line only stops once your year to date insurable earnings reach $70,800.
The weekly benefit maximum for 2027 is a different number. See our articles on EI premiums in 2027 and the 2027 EI maximum weekly benefit for what applies to claimants.
What do these limits mean for an actual salary?
The table applies the 2027 rules to an annual salary paid evenly through the year. It shows only the employee share of CPP, CPP2 and EI. Income tax is not included because the 2027 federal tax tables are not published. These are examples, not pay stub predictions, since real payroll software rounds each pay period and handles bonuses and mid year starts in its own way.
| Salary | CPP | CPP2 | EI | Total (our sum) |
|---|---|---|---|---|
| $45,000 | $2,386.25 | $0.00 | $738.00 | $3,124.25 |
| $60,000 | $3,248.75 | $0.00 | $984.00 | $4,232.75 |
| $80,000 | $4,209.00 | $132.00 | $1,161.12 | $5,502.12 |
| $100,000 | $4,209.00 | $428.00 | $1,161.12 | $5,798.12 |
At $100,000 the total is $5,798.12. A person at or above the ceilings pays about $5,798.12 in total for the year, which is $28.60 more than the 2026 maximum of $5,769.52. Both totals are our own addition of the three CRA maximums for a person who earns above every ceiling.
Try your own numbers in the take-home pay 2027 preview.
How do the yearly limits show up on a pay stub?
The limits above are yearly. Payroll software spreads CPP over the year by taking the rate times pay after a per period share of the $3,500 exemption, and it stops when the yearly maximum is reached. For someone paid every two weeks, the exemption per pay is about $134.62 ($3,500 divided by 26). On a $2,000 pay, CPP would be $2,000 minus $134.62, times 5.75%, which is $107.26, and EI would be 1.64% of $2,000, which is $32.80. These are examples that use our own arithmetic, not an official payroll calculator.
People who earn a large amount early in the year, for example through a signing bonus, can hit a maximum in the first months and see CPP or EI disappear from later pay stubs. That is normal and does not mean the employer made a mistake. Your total for the year is still capped at the same maximum.
What if I have two jobs or change jobs in the year?
Each employer withholds as if it were your only one. If you earn above the ceilings across two jobs, you may overpay CPP and EI during the year. The extra comes back when you file your return, as a refund or credit for the overpayment. Changing jobs works the same way. The new employer starts counting from zero, so the first pay at the new job can have full deductions even if you reached a maximum before.
Keep your T4 slips. They show the CPP, CPP2 and EI withheld, and the return reconciles them to the yearly limits. Most workers simply wait for the refund at filing time.
What is still missing for 2027 payroll deduction tables?
- Income tax withholding. The CRA has not published the 2027 payroll deductions tables, so federal tax on each pay cannot be worked out officially yet. The federal tax brackets and basic personal amount for 2027 are also unpublished (see federal tax brackets and indexation for 2027).
- TD1 forms. The 2027 versions are not posted at the time of writing.
- QPP and QPIP. Quebec has its own pension plan and parental insurance plan. We could not confirm the 2027 values on an official page, so see QPP and QPIP for 2027 for what is known.
- Provincial rates. Provincial income tax changes for 2027 are only partly announced.
This is why your first January 2027 pay may use rules that differ slightly from what you see here. Employers use the CRA calculator and tables as soon as they are out.
What should an employer do before January?
- Update payroll software or the service you use to the 2027 CPP, CPP2 and EI values once they appear in the vendor release notes.
- Check that the first pay of January uses the new ceilings and the lower CPP rate.
- Collect new TD1 forms only from employees whose claim changed.
- Keep the CRA pages in the sources list bookmarked, since the income tax tables and Quebec figures are still to come.
Employer remittances follow the usual CRA schedule. See the Canada payroll deductions guide and the CPP and EI maximums page for 2026 for the current year.
Frequently asked questions
What is the maximum CPP contribution in 2027?
The CRA lists $4,209.00 for an employee and the same for an employer, based on a 5.75% rate on pay between $3,500 and $76,700. Self-employed people pay $8,418.00 because they cover both halves. In 2026 the maximum is $4,230.45, so 2027 is a little lower.
What is CPP2 in 2027?
CPP2 is the second additional contribution on earnings between $76,700 and $87,400. The rate is 4%, so the maximum is $428 for an employee and $428 for an employer, or $856 for a self-employed person. You pay none of it if your earnings stay under $76,700.
What are the EI premium limits for 2027?
The CRA shows maximum insurable earnings of $70,800 and a rate of 1.64% outside Quebec. The maximum employee premium is $1,161.12 and the employer maximum is $1,625.57, which is 1.4 times the employee amount. Quebec workers pay a lower 1.29% because of the provincial parental plan.
Is the CPP rate going down in 2027?
Yes. The CRA page shows 5.75% for 2027 against 5.95% for 2026. Even so, the earnings ceiling rises to $76,700, so the total stays close to last year and the maximum drops by $21.45. CPP2 goes up from $416 to $428, which offsets part of the drop.
Are the 2027 income tax tables out?
Not at the time of writing. The CRA has not posted the 2027 payroll deductions tables or TD1 forms, and the federal indexation factor, brackets and basic personal amount for 2027 are not confirmed. Check the CRA payroll pages in December and January, when they usually appear.
Do Quebec workers pay the same CPP?
No. Quebec workers pay into the Quebec Pension Plan, not the CPP, and into the Quebec Parental Insurance Plan. We could not confirm the 2027 QPP and QPIP figures on an official page, so we do not state them here. Check Revenu Quebec before you plan around any number.