What changes for CPP in 2027?

The base contribution rate drops from 4.95% to 4.75% for employees and employers, announced by the government on April 28, 2026. The first additional contribution of 1.00% does not change, so the combined employee rate becomes 5.75%. Self-employed people pay both halves, 11.50%.

How much will I save?

About 0.20% of your earnings between the $3,500 exemption and the ceiling. On the 2026 ceiling of $74,600 that is up to $142 a year for an employee, and the same again for the employer. The 2027 ceiling will be higher, so the real maximum will be a little more.

Does the CPP2 rate change?

No. The second additional contribution stays at 4% on earnings between the first and second ceilings.

What are the 2027 CPP maximums?

Not published yet. The CRA announces the 2027 year's maximum pensionable earnings, the second ceiling and the maximum contributions in early November 2026, based on average wage growth. This page and every calculator on the site will carry them the day they are published.

Will my CPP pension be lower because I pay less?

No. The rate cut reflects the plan's funding position as assessed by the Chief Actuary, not a change to benefits. The benefit formula and the enhancement phase-in are unchanged.

Does this apply in Quebec?

No. Quebec runs the QPP with its own rates, set by Retraite Québec. The QPP base rate for 2027 has not been published.

CPP Changes 2027: Base Rate Drops to 4.75%

From January 1, 2027 the base CPP contribution rate falls from 4.95% to 4.75%. With the unchanged 1.00% enhancement on top, employees will pay 5.75% of pensionable earnings instead of 5.95%, and employers match it. The 2027 earnings ceilings are not published yet. Here is what is known, what it is worth at your salary, and what to watch for in November.

What has been published

Base rate 4.95% to 4.75% on January 1, 2027, for employees and employers. Announced April 28, 2026 and carried in the CRA's payroll formulas (T4127, 123rd edition).
First additional contribution unchanged at 1.00%. Combined employee rate 5.75%, down from 5.95%.
Self-employed rate 11.50%, down from 11.90%.
Second additional contribution (CPP2) unchanged at 4% for employees.

What is not published yet

The 2027 year's maximum pensionable earnings, the second ceiling and the maximum contributions. The CRA sets them from average wage growth and announces them in early November. Until then the figures below use the 2026 ceilings, which is why they are labelled as an illustration. Nothing on this site shows a 2027 ceiling until the CRA does.

Checked on October 13, 2026

The CRA's table of yearly limits is where the 2027 ceilings will appear first. On October 13, 2026 it lists the 2026 ceilings of $74,600 and $85,000, and a 2027 RRSP limit of $35,390. The 2027 CPP ceilings are still blank in that table, and so is the 2027 TFSA limit.

Item for 2027	Status on October 13, 2026
CPP base rate	Published: 4.75%
Combined employee rate	Published: 5.75%
Maximum pensionable earnings and second ceiling	Not published. The CRA's table shows no 2027 figure yet
Maximum CPP contributions	Not published. They follow from the ceilings
RRSP dollar limit	Published: $35,390

Check the CRA's table of limits yourself, and see everything else that changes on the 2027 changes page, including EI premiums for 2027.

What the rate cut is worth, on 2026 ceilings

Employee saving of 0.20% on earnings between $3,500 and $74,600. The employer saves the same amount again.

Salary	Employee CPP saving a year	Per paycheque, twice a month
$40,000	$73	$3.04
$60,000	$113	$4.71
$74,600 (2026 ceiling)	$142	$5.92
$100,000	$142	$5.92

Small per cheque, but it is the first CPP rate cut since the enhancement began in 2019, and it lands in the same month as the new year's brackets. The take-home pay calculator will switch to the 2027 rates once the ceilings are published, with 2026 kept available for filing.

What does not change

Your future pension. The cut reflects the plan's funding, not the benefit formula.
The $3,500 basic exemption.
The tax treatment: the base contribution is a non-refundable credit, the enhanced part is a deduction.
Quebec, which runs the QPP on its own rates.

Deciding when to start CPP is a bigger lever than the contribution rate. The CPP start age calculator compares 60 to 70, and the CPP and OAS planner shows the after-tax income each choice gives.

Frequently asked questions

What changes for CPP in 2027?: The base contribution rate drops from 4.95% to 4.75% for employees and employers, announced by the government on April 28, 2026. The first additional contribution of 1.00% does not change, so the combined employee rate becomes 5.75%. Self-employed people pay both halves, 11.50%.
How much will I save?: About 0.20% of your earnings between the $3,500 exemption and the ceiling. On the 2026 ceiling of $74,600 that is up to $142 a year for an employee, and the same again for the employer. The 2027 ceiling will be higher, so the real maximum will be a little more.
Does the CPP2 rate change?: No. The second additional contribution stays at 4% on earnings between the first and second ceilings.
What are the 2027 CPP maximums?: Not published yet. The CRA announces the 2027 year's maximum pensionable earnings, the second ceiling and the maximum contributions in early November 2026, based on average wage growth. This page and every calculator on the site will carry them the day they are published.
Will my CPP pension be lower because I pay less?: No. The rate cut reflects the plan's funding position as assessed by the Chief Actuary, not a change to benefits. The benefit formula and the enhancement phase-in are unchanged.
Does this apply in Quebec?: No. Quebec runs the QPP with its own rates, set by Retraite Québec. The QPP base rate for 2027 has not been published.

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

Data verified September 7, 2026. The 2027 ceilings will be added when the CRA publishes them.

CPP changes for 2027: the base rate drops to 4.75%