YMPE 2027: CPP Earnings Ceiling Rises to $76,700, Rate Falls to 5.75%

The Canada Revenue Agency (CRA) lists the 2027 Year’s Maximum Pensionable Earnings (YMPE) at $76,700, and its Canada Pension Plan (CPP) table shows an employee and employer rate of 5.75% for 2027. That is $2,100 more earnings covered than the $74,600 of 2026, at a rate 0.20 points lower than the 5.95% of 2025 and 2026. The CRA’s payroll tables carry a page-details date of Nov. 9, 2026. The CRA’s CPP page gives no reason for the lower rate. This story adds a 2025 to 2027 comparison and a payroll reference sheet.

What are the CPP maximums for 2027?

The CRA’s table “CPP contribution rates, maximums and exemptions” has a row marked “New 2027”. Its columns are maximum annual pensionable earnings, basic exemption, maximum contributory earnings, rate, maximum employee and employer contribution, and maximum self-employed contribution.

Item	2025	2026	2027	Change, 2026 to 2027
Maximum annual pensionable earnings (YMPE)	$71,300	$74,600	$76,700	+$2,100
Basic exemption	$3,500	$3,500	$3,500	none
Maximum contributory earnings	$67,800	$71,100	$73,200	+$2,100
Employee and employer rate	5.95%	5.95%	5.75%	-0.20 points
Maximum employee and employer contribution	$4,034.10	$4,230.45	$4,209.00	-$21.45
Maximum self-employed contribution	$8,068.20	$8,460.90	$8,418.00	-$42.90

Source: CRA, “CPP contribution rates, maximums and exemptions” (page details Nov. 9, 2026). The change column is our subtraction of the 2026 row from the 2027 row.

The ceiling rises, yet the maximum falls. The reason is arithmetic: $73,200 of contributory earnings at 5.75% is $4,209.00, while $71,100 at 5.95% was $4,230.45. The CRA page does not say why the rate is lower.

What is the CPP2 maximum for 2027?

The second additional CPP (CPP2) applies to earnings above the YMPE, up to the Year’s Additional Maximum Pensionable Earnings (YAMPE). The CRA’s CPP2 page, also dated Nov. 9, 2026, lists a 4% rate in all three years.

Item	2025	2026	2027	Change, 2026 to 2027
Additional maximum annual pensionable earnings (YAMPE)	$81,200	$85,000	$87,400	+$2,400
Rate	4%	4%	4%	none
Maximum employee and employer contribution	$396	$416	$428	+$12
Maximum self-employed contribution	$792	$832	$856	+$24

Source: CRA, “Second additional CPP (CPP2) contribution rates and maximums” (page details Nov. 9, 2026); change column is our subtraction.

For 2027 the CPP2 band runs from $76,700 to $87,400, which is $10,700, and 4% of $10,700 is the $428 the CRA lists. The CRA’s 2025 news release said the YAMPE “will be approximately 14% above the YMPE” in 2025 and every year after, and that the amounts “take into account the growth in average weekly wages and salaries in Canada.” The CRA’s CPP enhancement page gives the 2026 ceilings as $74,600 and $85,000. The CRA’s limits table for registered plans, dated Oct. 28, 2026, lists the same 2027 YMPE and YAMPE, and a 2027 Registered Retirement Savings Plan (RRSP) dollar limit of $35,390.

How much do both plans cost an employee in 2027?

Adding the two maximums gives our own total, not a CRA figure.

Maximum employee total (our sum)	2025	2026	2027
CPP	$4,034.10	$4,230.45	$4,209.00
CPP2	$396.00	$416.00	$428.00
CPP plus CPP2	$4,430.10	$4,646.45	$4,637.00

The 2027 total is $9.45 below 2026. Self-employed people pay both the employee and employer shares: $8,418.00 plus $856 is $9,274.00 in 2027, our sum of the CRA’s two maximums.

What does CPP cost at $50,000, $60,000 and $90,000 in 2027?

These are our calculations from the CRA’s table, on a full year of earnings: contributions apply to earnings above the $3,500 basic exemption, up to the ceiling, at the year’s rate, and CPP2 applies at 4% to earnings between the two ceilings. Actual paycheques are worked out per pay period, so payroll software can differ by cents.

Yearly earnings	CPP 2026	CPP 2027	CPP2 2026	CPP2 2027	Total change
$50,000	$2,766.75	$2,673.75	$0	$0	-$93.00
$60,000	$3,361.75	$3,248.75	$0	$0	-$113.00
$90,000	$4,230.45	$4,209.00	$416	$428	-$9.45

For $60,000, the 2027 figure is $56,500 ($60,000 minus $3,500) times 5.75%. The $90,000 earner is at both ceilings in both years, so only the maximums count. The first two earners pay less in 2027 because their earnings sit below the ceiling and only the rate changes.

At what earnings does CPP stop in 2027?

Our reading of the table: an employee reaches the $4,209.00 maximum once earnings for the year reach $76,700. CPP2 contributions then run on earnings from $76,700 to $87,400. The CRA tells employers: “For current employees, stop deducting CPP when the employee reaches the maximum contribution for the year in their employment with you.” The CRA tables list the figures for 2027; they do not give an effective-date sentence, so the 2027 maximums apply to the 2027 calendar year as the table shows them.

Print the January 2027 calendar or the yearly calendar and keep the payroll reference sheet in the downloads box next to the pay schedule.

Which other Canadian 2027 payroll figures are out?

Related Canadian money dates: see the Employment Insurance premium rate and maximum for 2027, the RRSP deadline for 2027 and the benefit payment dates for November and December 2026.