The 2027 year’s maximum pensionable earnings (YMPE) is $76,700, up from $74,600 in 2026, and the second earnings ceiling (YAMPE) is $87,400, up from $85,000. Both figures are confirmed by the Canada Revenue Agency. They set how much of your pay is subject to CPP contributions in 2027, and they also lift the maximum pension you can build.
CPP limits: 2027 vs 2026
| 2026 | 2027 | |
|---|---|---|
| Basic exemption | $3,500 | $3,500 |
| Year’s maximum pensionable earnings (YMPE) | $74,600 | $76,700 |
| Year’s additional maximum pensionable earnings (YAMPE) | $85,000 | $87,400 |
What you will pay in 2027
Employees pay CPP on earnings between $3,500 and the YMPE, then the second additional contribution (CPP2) at 4% on earnings between the YMPE and the YAMPE. Employers match both.
The main employee rate was 5.95% in 2026. The CPP’s chief actuary has said the base rate is set to fall by 0.2 points from January 1, 2027, which would bring the combined rate to 5.75%. If that applies, the maximum employee contributions for 2027 would be:
| Contribution | 2026 maximum | 2027 maximum (at 5.75%) |
|---|---|---|
| CPP (first ceiling) | $4,230.45 | $4,209.00 |
| CPP2 (second ceiling) | $416.00 | $428.00 |
| Total | $4,646.45 | $4,637.00 |
Self-employed people pay both halves, so double these figures. Check the CRA’s contribution rates page in January for the final payroll numbers.
Why it matters for your pension
Your CPP retirement pension is based on your earnings up to these ceilings, so a higher YMPE and YAMPE means a slightly higher maximum future pension for people who earn at or above them. When to start your pension matters even more: see CPP at 60 vs 65 vs 70.
Other 2027 limits
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Frequently asked questions
What is the YMPE for 2027?
$76,700. The YAMPE, the second ceiling for CPP2, is $87,400.
When do I stop paying CPP in 2027?
Once your earnings for the year pass $87,400, you have paid the maximum CPP and CPP2, and deductions stop for the rest of the year.
Does Quebec use the same numbers?
Quebec workers pay into the QPP, which uses the same earnings ceilings but different contribution rates.
This article is general information, not financial or tax advice.
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