What changes for CPP on January 1, 2027?
The Year's Maximum Pensionable Earnings (YMPE) rises from $74,600 to $76,700, and the Year's Additional Maximum Pensionable Earnings (YAMPE) rises from $85,000 to $87,400. The CRA published both on October 28, 2026.
The base CPP rate is also set to fall. Ottawa has legislated a cut in the combined base CPP rate from 9.9% to 9.5% starting January 1, 2027, which takes the employee rate from 5.95% to 5.75% (4.95% to 4.75% on the base part). Bill C-30 received Royal Assent on June 18, 2026. The cut takes effect on a day set by order after provincial consent, and we have found no such order yet.
In plain terms: the ceilings rise, so CPP comes off more of your pay before it stops, but the lower rate more than offsets that for most earners. Our calculation shows lower employee contributions at every income we tested.
Not yet published: the CRA has not posted the 2027 contribution rates or maximum contribution amounts. The dollar figures below are our own arithmetic assuming the cut takes effect as announced, and we mark them that way. We will update this post when the CRA confirms them.
The 2027 limits at a glance
| 2026 | 2027 | |
|---|---|---|
| YMPE (CPP earnings ceiling) | $74,600 | $76,700 |
| YAMPE (CPP2 earnings ceiling) | $85,000 | $87,400 |
| Basic exemption | $3,500 | $3,500 (no change announced) |
| Employee CPP rate | 5.95% | 5.75% (announced, pending CRA) |
| Max employee CPP | $4,230.45 | $4,209.00 (our calculation) |
| Max employee CPP2 | $416.00 | $428.00 (our calculation) |
The 2027 maximums assume the CPP rate falls to 5.75% and CPP2 stays at 4%. The math: ($76,700 − $3,500) × 5.75% = $4,209.00, and ($87,400 − $76,700) × 4% = $428.00. Treat both as estimates until the CRA posts its 2027 contribution table.
Who is affected in 2027?
- Employees earning over $74,600. CPP keeps coming off your pay for longer in the year, because the ceiling is higher. With the rate cut, the maximum CPP plus CPP2 is still slightly lower in total: $4,637.00 against $4,646.45 (our calculation).
- Employees earning over $85,000. The CPP2 band moves up and gets a bit wider, so the CPP2 maximum is higher too ($428.00 against $416.00).
- Employers. You match the employee CPP contribution, so your cost falls with the rate cut. Finance Canada says an employee earning $70,000 saves about $133 a year, with matching savings for employers.
- Self-employed. You pay both halves, so the change is double.
If the rate cut does not take effect on January 1, the picture changes: the higher ceilings would then mean slightly more CPP for anyone earning above $74,600. Watch for the CRA's 2027 table.
What it looks like at three incomes
Employee share only (CPP plus CPP2), assuming the rate cut takes effect on January 1, 2027. These are our calculations, not CRA figures.
| Annual earnings | CPP + CPP2 in 2026 | CPP + CPP2 in 2027 | Difference |
|---|---|---|---|
| $60,000 | $3,361.75 | $3,248.75 | −$113.00 |
| $75,000 | $4,246.45 | $4,111.25 | −$135.20 |
| $90,000 or more | $4,646.45 | $4,637.00 | −$9.45 |
The savings are largest in the middle and shrink at the top, because high earners hit the maximum, which now sits on a higher ceiling.
Quebec: QPP
Quebec residents pay into the Quebec Pension Plan (QPP), not CPP. The QPP uses the same maximum pensionable earnings, but Retraite Québec and Revenu Québec have not yet posted their 2027 figures. We will not quote QPP dollar amounts until they do.
When our calculators change
Our calculators use 2026 rates until January 1, 2027. We will switch the paycheque tools to the 2027 CPP, CPP2 and tax brackets once the CRA publishes its full January 2027 payroll tables. Until then, use the payroll deductions calculator or the paycheque calculator for 2026 pay. For how each line reads on your stub, see how to read your pay stub.
The 2027 CPP rate and maximums are still pending at the CRA. Also published October 28: the 2028 RRSP dollar limit is $36,390, and the 2027 money purchase limit is $36,390. Use the RRSP calculator for your own room. Confirm your actual room on your CRA Notice of Assessment.
Sources
- CRA: MP, RRSP, DPSP, ALDA, TFSA, and YMPE limits
- CRA: What's new for registered plans
- CRA: CPP contribution rates, maximums and exemptions (2027 not yet listed)
- CRA: T4127 payroll deductions formulas, July 2026 (upcoming changes for January 1, 2027)
- Finance Canada: Legislation passes to implement Spring Economic Update 2026 measures
- Parliament of Canada: Bill C-30, Royal Assent
Estimate only. Based on CRA limits, published legislation and our own arithmetic. Not official payroll or tax advice.