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Figures: 2026 tax year

CPP contributions on your return

Your CPP contributions are split on the T1: the base part is a credit on line 30800 and the enhanced part, with all of CPP2, is a deduction on line 22215.

Updated 24 July 2026 · 1 min read

Your T4 shows one CPP figure in box 16 and, if you earned enough, a second in box 16A. Your return treats them in three parts.

The 2026 rates

Item2026 amount
Earnings ceiling for ordinary CPPCA$74,600
Basic exemptionCA$3,500
Employee rate5.95 per cent
Maximum employee contributionCA$4,230.45
Second ceiling for CPP2CA$85,000
CPP2 employee rate4 per cent
Maximum employee CPP2CA$416

The three parts

  1. Base CPP goes on line 30800 as a non-refundable credit. It reduces the tax you owe, at the lowest federal rate, and it cannot take your tax below zero.
  2. Enhanced CPP, the part built by the rate increases since 2019, goes on line 22215 as a deduction. It comes off your income before tax is worked out.
  3. CPP2 from box 16A also goes on line 22215, in full.

You do not do this arithmetic. Hypertax splits box 16 using the published 2026 rates and fills Schedule 8 for you.

Why a deduction and a credit are not the same

A deduction lowers the income your tax is worked out on, so it is worth more to someone in a higher bracket. A credit lowers the tax itself, by the same amount for everyone. Parliament made the enhanced portion a deduction on purpose, so the extra contributions are not taxed twice over a working life.

Contributions after 65

If you were 65 or older, were already receiving a CPP or QPP retirement pension, and were still working in 2026, you may have elected to stop contributing on Form CPT30. If you filed that election, your slip should show contributions only for the part of the year before it took effect. Check box 16 against box 26 if the figures look wrong.

Sources

Every figure and every procedure on this page was checked against the pages below on the date shown. The agencies revise these pages, so confirm anything you are about to act on.

  1. CPP contribution rates, maximums and exemptions (opens in a new tab)canada.ca · checked 24 July 2026
  2. Second additional CPP contribution (CPP2) rates and maximums (opens in a new tab)canada.ca · checked 24 July 2026
  3. Line 30800 – Base CPP or QPP contributions through employment income (opens in a new tab)canada.ca · checked 24 July 2026
  4. Line 22215 – Deduction for CPP or QPP enhanced contributions on employment income (opens in a new tab)canada.ca · checked 24 July 2026

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This article explains a form and a process. It is general information, not tax advice about your own situation, and Hypertax does not send your return to the CRA — you print it and mail it. See the not-tax-advice notice and the rest of the help centre.