CPP and EI calculator
What comes off your pay for CPP and EI, including the second CPP band above the first earnings ceiling that most calculators still ignore.
Covers 2026 tax year · rates as at 2026-01-01
CPP and EI deducted
Estimate$5,650.00
6.9% of employment income
- CPP
- $4,230.00
- CPP2
- $296.00
- EI
- $1,123.00
| Employment income | $82,000 |
|---|---|
| Basic exemption | -$3,500.00 |
| CPP at 5.95% | -$4,230.00 |
| CPP2 at 4% above the first ceiling | -$296.00 |
| EI at 1.64% | -$1,123.00 |
| Total deducted | -$5,650.00 |
- Employee share only. Your employer pays a matching amount for CPP and 1.4 times yours for EI.
- Income tax is charged separately and is not included here.
On $82,000, CPP applies to earnings between $3,500 and $74,600, then CPP2 takes 4% of the next $7,400 — a band that did not exist before 2024.
How this is calculated
How this is calculated
CPP2 is a second ceiling, not an extension
Contributions run at 5.95% on earnings between $3,500 and the $74,600 YMPE, then a separate 4% applies from there to the $85,000 YAMPE. Calculators that stop at the first ceiling understate deductions for anyone earning above it.
CPP2 = 4% × (min(income, 85,000) − 74,600)The basic exemption is a real deduction
The first $3,500 of earnings is exempt from CPP entirely, which is worth about $208 at the 5.95% rate. It applies once per year across all employment, which is why multiple jobs can over-deduct.
CPP = 5.95% × (min(income, 74,600) − 3,500)EI has its own smaller ceiling
EI is 1.64% of insurable earnings up to $68,500, so it maxes out at roughly $1,123 and stops well before CPP does. Quebec residents pay a lower federal EI rate because of the provincial parental insurance plan.
Worked example: $82,000 of employment income
| Employment income | $82,000 |
|---|
| CPP base | $3,500 to $74,600 |
|---|---|
| CPP2 band | $74,600 to $82,000 |
| EI | Capped at $68,500 |
Your employer pays a matching CPP amount and 1.4 times your EI, so the total cost of employing you is materially higher than the deduction on your payslip.
What this assumes
- Employee contributions only.
- A single employer for the full year.
- Outside Quebec, which has its own QPP and lower federal EI rate.
- Employment income, not self-employment.
Where this commonly goes wrong
- Two employers each apply the $3,500 exemption and their own ceilings, so changing jobs mid-year commonly over-deducts CPP — recovered only through your return.
- The self-employed pay both halves of CPP, roughly doubling the deduction, with half deductible against income.
- Quebec residents pay QPP at a higher rate and a lower federal EI rate, so a rest-of-Canada figure is wrong in both directions.
Questions
How much CPP will I pay?
5.95% of earnings between $3,500 and $74,600, then 4% on anything from there to $85,000. On $82,000 that is the full base contribution plus CPP2 on $7,400.
What is CPP2?
A second contribution band introduced in 2024 on earnings above the first ceiling. It charges 4% between the $74,600 YMPE and the $85,000 YAMPE, funding the enhanced portion of the pension.
When do CPP and EI stop coming off my pay?
EI stops once insurable earnings reach $68,500, and CPP once earnings reach $85,000 including the CPP2 band. Higher earners see noticeably larger paycheques late in the year as each one ends.
Does my employer pay too?
Yes. Employers match your CPP dollar for dollar and pay 1.4 times your EI premium. The self-employed pay both CPP shares themselves, with half deductible against income.
What if I had two jobs this year?
Each employer applies the $3,500 exemption and the ceilings independently, so you likely over-contributed. The excess is refunded through your tax return — it is not corrected automatically during the year.
Is Quebec different?
Yes. Quebec runs QPP instead of CPP at a higher rate, and the federal EI rate is lower there because the province operates its own parental insurance plan. Figures for the rest of Canada do not apply.
Related tools
Sources
General estimate based on published CRA rates for 2026 tax year. Not tax advice. Confirm your position with the CRA or a qualified adviser.
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