2027 CPP and EI calculator: what the CPP rate cut means for your paycheque
Updated November 11, 2026 · Official CRA 2027 rates and maximums (posted November 9, 2026)
On January 1, 2027, the CPP rate for employees drops from 5.95% to 5.75%. On a $70,000 salary that is $133 less CPP a year, but EI rises slightly, so you keep $108.07 more. Earn more than about $86,700 and the higher ceilings win: you pay up to $28.60 more. Enter your pay to see your numbers.
Your 2027 CPP and EI deductions
CPP + EI at each income, 2026 vs 2027
Employee outside Quebec, total CPP, CPP2 and EI for the year.
| Income | 2026 | 2027 | Change per year | Per biweekly pay |
|---|---|---|---|---|
| $25,000 | $1,686.75 | $1,646.25 | −$40.50 | −$1.56 |
| $40,000 | $2,823.75 | $2,754.75 | −$69.00 | −$2.65 |
| $55,000 | $3,960.75 | $3,863.25 | −$97.50 | −$3.75 |
| $70,000 | $5,079.82 | $4,971.75 | −$108.07 | −$4.16 |
| $76,700 | $5,437.52 | $5,370.12 | −$67.40 | −$2.59 |
| $85,000 | $5,769.52 | $5,702.12 | −$67.40 | −$2.59 |
| $100,000+ | $5,769.52 | $5,798.12 | +$28.60 | +$1.10 |
2027 CPP and EI rates and maximums
| Item | 2026 | 2027 |
|---|---|---|
| CPP employee rate (employer pays the same) | 5.95% | 5.75% |
| Maximum pensionable earnings (YMPE) | $74,600 | $76,700 |
| Basic exemption | $3,500 | $3,500 |
| Maximum CPP contribution, employee | $4,230.45 | $4,209.00 |
| Maximum CPP contribution, self-employed | $8,460.90 | $8,418.00 |
| CPP2 ceiling (YAMPE) | $85,000 | $87,400 |
| CPP2 rate and maximum, employee | 4%, $416 | 4%, $428 |
| EI rate (outside Quebec) | 1.63% | 1.64% |
| EI maximum insurable earnings | $68,900 | $70,800 |
| Maximum EI premium, employee | $1,123.07 | $1,161.12 |
| EI rate and maximum, Quebec | 1.30%, $895.70 | 1.29%, $913.32 |
What you can do
- Check your first pay stub of 2027. The CPP line should be a little smaller; if it isn't, ask payroll whether the new rate is set up.
- Put the difference to work. A $108 saving is small but automatic. The 2027 RRSP limit is $35,390, and new TFSA room opens on January 1.
- Self-employed? You pay both halves, so the rate cut is doubled, but so are the ceiling increases. You settle CPP on your 2027 return, so set aside instalments accordingly.
- Employers: your matching CPP share drops by the same amount as each employee's.
Getting the grocery benefit? Budget 2026 proposes a one-time top-up in early 2027. See your payments →
Questions people ask
What is the CPP contribution rate for 2027?
5.75% for employees and employers each (11.5% if self-employed), down from 5.95% in 2026. It applies to earnings between the $3,500 basic exemption and the $76,700 maximum pensionable earnings. The second additional CPP (CPP2) stays at 4% on earnings from $76,700 to $87,400.
Why is CPP going down in 2027?
Parliament cut the base CPP contribution rate from 9.9% to 9.5% (employee and employer combined) starting in 2027. The measure came from the Spring Economic Update 2026 and became law when Bill C-30 received Royal Assent on June 19, 2026.
How much will I save on CPP?
0.2% of your earnings between $3,500 and $74,600: about $133 a year on a $70,000 salary. Because EI premiums and the earnings ceilings also change, your total deductions at $70,000 fall by $108.07.
Why would I pay more in 2027?
If you earn more than about $86,700, the higher CPP and CPP2 ceilings and the higher EI rate add more than the rate cut saves. At or above $87,400 you pay $28.60 more in total: CPP −$21.45, CPP2 +$12.00, EI +$38.05.
What is the maximum CPP contribution for 2027?
$4,209.00 for employees (and the same for employers), plus up to $428 of CPP2. Self-employed people pay up to $8,418.00 plus $856 of CPP2.
What are the 2027 EI premium rate and maximum?
1.64% of insurable earnings up to $70,800, so at most $1,161.12 a year for employees (1.29% and $913.32 in Quebec). In 2026 it was 1.63% on up to $68,900.
Does the CPP cut apply in Quebec?
No. Workers in Quebec contribute to the Quebec Pension Plan (QPP), which sets its own rates. The calculator shows only EI for Quebec employees.
When does the change show up on my pay?
On your first paycheque of 2027. Each cheque has a slightly lower CPP rate. Higher earners also keep paying CPP a little later into the year, because the maximum pensionable earnings rise to $76,700.
Sources
- CRA: CPP contribution rates, maximums and exemptions (2027 row posted Nov 9, 2026)
- CRA: second additional CPP (CPP2) rates and maximums
- CRA: EI premium rates and maximums
- ESDC: summary of the 2027 actuarial report on the EI premium rate
- Department of Finance: legislation passes to implement the Spring Economic Update 2026 (June 19, 2026)
- CRA: RRSP and other registered plan limits, YMPE and YAMPE
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