Preview, proposed rate · Ontario
CPP 2027 rate change
This is a PREVIEW of a proposed rate, not an enacted T4127 edition. The number below is not a filing figure.
Earnings statement
T4127 Option 1
Net pay
$
Your deductions
Employer pays
These amounts are not withheld from you. They are the employer’s statutory CPP and EI premiums on this pay.
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Show the working
| Factor | Value | Definition |
|---|---|---|
| A | Annual taxable income (T4127 Chapter 4, Step 1) | |
| R | Federal tax rate (T4127 Chapter 8, Table 8.1) | |
| K | Federal constant; the tax overcharged when applying the higher federal rates to A (T4127 Chapter 8, Table 8.1) | |
| K1 | Federal non-refundable personal tax credit (lowest federal tax rate × TC) (T4127 Chapter 4, Step 2) | |
| K2 | Federal tax credit for base CPP contributions and EI premiums (T4127 Chapter 4, Step 2) | |
| K4 | Federal non-refundable tax credit calculated using the Canada employment amount (T4127 Chapter 4, Step 2) | |
| T3 | Annual basic federal tax (T4127 Chapter 4, Step 2) | |
| T1 | Annual federal tax deduction (T4127 Chapter 4, Step 3) | |
| V | Provincial or territorial tax rate (T4127 Chapter 8, Table 8.1) | |
| KP | Provincial or territorial constant (T4127 Chapter 8, Table 8.1) | |
| K1P | Provincial or territorial non-refundable personal tax credit (lowest provincial rate × TCP) (T4127 Chapter 4, Step 5) | |
| K2P | Provincial or territorial tax credit for base CPP contributions and EI premiums (T4127 Chapter 4, Step 5) | |
| T4 | Annual basic provincial or territorial tax (T4127 Chapter 4, Step 4) | |
| V1 | Provincial surtax calculated on the basic provincial tax (Ontario only) (T4127 Chapter 4, Step 5) | |
| V2 | Ontario Health Premium calculated on taxable income (T4127 Chapter 4, Step 5) | |
| S | Provincial tax reduction (Ontario and British Columbia) (T4127 Chapter 4, Step 5) | |
| T2 | Annual provincial or territorial tax deduction (except Quebec) (T4127 Chapter 4, Step 5) | |
| T | Estimated federal and provincial or territorial tax deductions (T4127 Chapter 4, Step 6). Why it can differ from total_tax | |
| TB | Tax on the current bonus or retroactive pay: the difference between annual tax (T1+T2) with the non-periodic payment and without it (T4127 Chapter 4, bonuses and retroactive pay) | |
| M | Year-to-date federal and provincial tax already deducted on periodic pay (Option 2). Does not include extra tax requested (L) or tax on bonuses (M1) (T4127 Chapter 5) | |
| M1 | Accumulated federal and provincial tax deductions on non-periodic payments such as bonuses (T4127 Chapter 5) | |
| C | Canada (or Quebec) Pension Plan contributions (T4127 Chapter 6) | |
| C2 | Second additional Canada (or Quebec) Pension Plan contributions (T4127 Chapter 6) | |
| EI | Employment insurance premiums (T4127 Chapter 7) | |
| F5 | Deductions for Canada Pension Plan additional contributions (T4127 Chapter 4, Step 1) | |
| BPAF | Federal Basic Personal Amount (T4127 Chapter 2; Table 8.2) | |
| K3 | Other federal non-refundable tax credits authorized by a tax services office or tax centre (T4127 Chapter 4, Step 2) | |
| K3P | Other provincial or territorial non-refundable tax credits authorized by a tax services office or tax centre (T4127 Chapter 4, Step 5) | |
| K4P | Territorial non-refundable tax credit calculated using the provincial or territorial Canada employment amount (T4127 Chapter 4, Step 5) | |
| K5P | Provincial supplemental non-refundable tax credit (lowest provincial tax rate) (T4127 Chapter 4, Step 5) | |
| LCF | Federal labour-sponsored funds tax credit (T4127 Chapter 4, Step 3) | |
| LCP | Provincial or territorial labour-sponsored funds tax credit (T4127 Chapter 4, Step 5) | |
| Y | Additional Ontario tax-reduction amount based on the number of eligible dependants (T4127 Chapter 4, Step 5) | |
| F5A | CPP additional-contribution deduction (T4127 Chapter 4, Step 1) | |
| F5B | CPP additional-contribution deduction (T4127 Chapter 4, Step 1) | |
| D | Employee’s year-to-date (before the pay period) Canada Pension Plan contribution with the employer (T4127 Chapter 6) | |
| D1 | Employee’s year-to-date (before the pay period) employment insurance premium with the employer (T4127 Chapter 7) | |
| D2 | Employee’s year-to-date (before the pay period) second additional CPP contribution with the employer (T4127 Chapter 6) | |
| P | The number of pay periods in the year (T4127 Chapter 4, Step 1) | |
| PR | The number of pay periods left in the year (including the current pay period) (T4127 Chapter 4, Step 1) | |
| PM | Total months during which CPP and/or QPP contributions are required (used to prorate the maximum contribution) (T4127 Chapter 6) | |
| S1 | Option 2 cumulative-averaging pair: total pay periods / current pay-period number (for example 52/1 (T4127 Chapter 5) | |
| CEA | Canada Employment Amount (T4127 Chapter 8, Table 8.2) | |
| TC | Total claim amount reported on federal Form TD1 (T4127 Chapter 2) | |
| TCP | Total claim amount reported on the provincial or territorial Form TD1 (T4127 Chapter 2) | |
| IE | Insurable earnings (T4127 Chapter 7) | |
| QPIP | Quebec Parental Insurance Plan premium (T4127 Chapter 8, Table 8.29) |
Sources
Every factor this pay used, with the CRA T4127 table it comes from.
What was announced
On 28 April 2026 the Department of Finance announced that the Canada Pension Plan base contribution rate falls from 4.95% to 4.75% on 1 January 2027. The employee total rate on earnings up to YMPE becomes 5.75% (4.75% base + 1.00% first additional). CPP2 on YMPE-to-YAMPE stays 4%. Employer contributions remain a dollar-for-dollar match.
Source: Spring Economic Update 2026. Bill C-30 received Royal Assent, but this engine still labels the 2027 rule set proposed until CRA publishes the 2027 T4127 edition and OSFI/CRA publish the 2027 YMPE. A statute is not a payroll table.
The preview table (2026 YMPE held)
YMPE $74,600 and YAMPE $85,000 are the 2026 published ceilings. Using them here is an explicit holding pattern, not a forecast. Maximums are the announced rates applied to those held dollars:
| Symbol | 2026 (enacted) | 2027 (proposed preview) |
|---|---|---|
| YMPE | $74,600.00 | $74,600.00 (held; 2027 unpublished) |
| YAMPE | $85,000.00 | $85,000.00 (held; 2027 unpublished) |
| Basic exemption | $3,500.00 | $3,500.00 |
| Employee / employer rate to YMPE | 5.95% (4.95% + 1.00%) | 5.75% (4.75% + 1.00%) |
| CPP2 rate YMPE to YAMPE | 4.00% | 4.00% |
| Max C (employee) | $4,230.45 | $4,088.25 (base $3,377.25 + first additional $711.00) |
| Max C2 (employee) | $416.00 | $416.00 |
The calculator above loads rule set 2027-01-01 and every F5 / K2 ratio is base/total from that file: not a hard-coded 0.0495/0.0595. Ontario weekly $1,000 is C = $53.63 under the preview (it is $55.50 under 2026).
British Columbia indexation is paused
BC Budget 2026 pauses personal-income-tax bracket and credit indexation for 2027-2030. The preview therefore uses the July 2026 Option 2 full-year table (lowest rate 5.60%, tax reduction $690) rather than the Option 1 mid-year prorated 6.14%. See BC tax updates.
EI is a separate announcement
Maximum insurable earnings and the 2027 EI rate are set under the EI Act, not this CPP cut. The preview still uses the 2026 EI table (1.63% to $68,900). This page is not an EI-2027 forecast.
Quebec
QPP is not CPP. This engine still refuses Quebec rather than print C as if the employee were in Ontario. See Quebec.
When this page will lose the preview label
The moment CRA publishes the 2027 T4127 edition and the 2027 YMPE is a published CRA/OSFI number, rule set 2027-01-01 becomes enacted and the banner above the number comes down. The RSS feed is /changes.xml. There will not be a “projected YMPE” row here in the meantime.