A compressor is provided and may include a first scroll member having an end plate and a spiral wrap extending from the end plate. The end plate may include a first modulation port and a second modulation port each in fluid communication with a compression pocket formed by the spiral wrap. A first modulation valve ring may be movable relative to the end plate between a first position blocking the first modulation port and a second position spaced apart from the first modulation port. A second modulation valve ring may movable relative to the end plate between a first position blocking the second modulation port and a second position spaced apart from the second modulation port. The second modulation ring may be located radially inward from the first modulation valve ring.