The Registered Education Savings Plan (RESP) is a registered account designed to help families save for a child’s post-secondary education. The federal government adds the Canada Education Savings Grant (CESG) to qualifying RESP contributions, accelerating growth beyond what investment returns alone would provide. RESPs can be opened at most financial institutions and are eligible for multiple federal and provincial grant programs.
The CESG is administered by Employment and Social Development Canada (ESDC) under the Canada Education Savings Act (CESA) and is the primary federal grant available to RESP holders.
Quick Answer
The base CESG is 20% on the first $2,500 contributed per year, per child. The maximum base CESG per year is $500. The lifetime CESG cap per child is $7,200. At $2,500/year from birth to age 14, the child would receive the full $7,200 in base CESG over 14.4 years.
CESG Rate and Contribution Match
| Contribution | CESG rate | Annual grant |
|---|---|---|
| First $2,500 | 20% | $500 |
| Above $2,500 | 0% | No additional CESG |
Contributions above $2,500/year do not attract additional base CESG, but do grow tax-deferred inside the RESP. There is no annual contribution limit for the RESP account itself, only for the CESG-eligible amount. The lifetime RESP contribution limit per child is $50,000.
Additional CESG (A-CESG)
Low- and middle-income families receive extra CESG on the first $500 contributed per year, on top of the base 20%:
| Adjusted family net income (2026) | A-CESG rate | Maximum extra grant |
|---|---|---|
| $58,523 or less | 20% | $100 (20% x $500) |
| $58,524 to $117,045 | 10% | $50 (10% x $500) |
| Above $117,045 | 0% | $0 |
A low-income family contributing $2,500/year can receive $500 base CESG + $100 A-CESG = $600 per year, up to an adjusted lifetime cap of $7,200 base plus additional amounts. The A-CESG does not have its own separate lifetime cap — only the total CESG lifetime cap of $7,200 applies.
Carry-Forward of CESG Room
If less than $2,500 is contributed in a year, unused CESG room carries forward one year. A child who receives no RESP contributions in year one accumulates $2,500 of carry-forward room. In year two, the subscriber can contribute $5,000 and receive $1,000 in CESG (20% x $5,000). Only one year of carry-forward room can be used at a time. Unused room does not compound beyond one year.
CESG Lifetime Cap and Age Limit
The lifetime CESG cap per child is $7,200. Grants stop after the calendar year in which the child turns 17. Two additional eligibility rules apply to 16- and 17-year-olds: at least $2,000 must have been contributed to the RESP before the end of the year the child turns 15, or at least $100 must have been contributed in each of any 4 years before the end of the year the child turns 15.
Worked Example: Contributing from Birth at $2,500/Year
Family income: $75,000. Annual contribution: $2,500. A-CESG rate: 10%.
- Base CESG per year: $500
- A-CESG per year: $50
- Total grant per year: $550
- Total contributions over 14 years (ages 0-13): $35,000
- Total CESG over 14 years (if cap not hit): $7,000 base + $700 A-CESG = $7,700. But the base lifetime cap is $7,200 — capped after 14.4 years of $500/year. Adjust: cap is hit after Year 14 for base; A-CESG adds $700 over 14 years.
At 5% average annual return, the RESP balance at the child’s age 18 would be approximately $92,000 (contributions + grants + investment growth).
Other Federal Grants
- Canada Learning Bond (CLB): $500 initially + $100/year (up to $2,000 total) for children in low-income families (net family income below approximately $52,000 for a family of three in 2026). The CLB does not require any parental contribution.
- Saskatchewan Advantage Grant for Education Savings (SAGES): 10% on the first $2,500/year, provincial.
- BC Training and Education Savings Grant (BCTESG): $1,200 one-time for BC-resident children born on or after August 1, 2007, available between ages 6 and 9.
Withdrawals: Educational Assistance Payments
When the child enrols in a qualifying post-secondary program, Educational Assistance Payments (EAPs) — comprised of grants and investment growth — are taxable in the hands of the student (typically at a low or zero rate given student income levels). Contributions returned to the subscriber are tax-free, as they were made with after-tax dollars.
Edge Cases and Rules
- A family RESP can cover multiple children; CESG is calculated per beneficiary, not per account.
- If the child does not attend post-secondary education, accumulated grants and growth (EAP amounts) must be repaid to the government unless a sibling beneficiary is named, or the plan is collapsed and a transfer to the subscriber’s RRSP (up to $50,000 room) is made, with the remaining growth taxed plus a 20% penalty.
- RESP assets are not CIPF-insured if held at a firm not covered by CIPF. Check the institution’s account protection coverage.
Frequently asked questions
- What is the CESG and how much is it?
- The Canada Education Savings Grant (CESG) is a federal grant equal to 20% of the first $2,500 contributed annually to an RESP per child. The maximum base CESG per year is $500. The lifetime CESG cap per child is $7,200.
- What is the lifetime CESG limit per child?
- The lifetime CESG cap is $7,200 per child. To reach the full cap at $500/year, contributions of $2,500/year must be maintained for at least 14.4 years. Grants stop after the calendar year in which the child turns 17.
- Is there extra CESG for low-income families?
- Yes. The Additional CESG (A-CESG) adds 20% on the first $500 contributed per year for families with adjusted net income at or below $58,523 (2026), and 10% for families with income between $58,524 and $117,045. Maximum A-CESG is $100 or $50 per year respectively.
- What happens if I do not contribute in a year?
- Unused CESG room carries forward one year. If no contribution was made in year one, you can contribute $5,000 in year two and receive $1,000 in CESG (20% x $5,000). You can only apply one year of carry-forward room at a time.
- What is the annual RESP contribution limit?
- There is no annual contribution limit for RESPs, but CESG is only paid on the first $2,500 contributed per year, per child. The lifetime contribution limit per beneficiary is $50,000.
- Can grandparents open an RESP for a grandchild?
- Yes. Any Canadian resident can open an RESP and name a child as beneficiary. Grandparents, parents, other relatives, and family friends can be subscribers. There are no income or relationship requirements for the subscriber.
- What is the Canada Learning Bond?
- The Canada Learning Bond (CLB) is a separate federal grant of $500 initially plus $100 annually (up to $2,000 total) for children in low-income families. The CLB requires no parental RESP contribution and is not part of the CESG.
- Are RESP withdrawals taxable?
- Educational Assistance Payments (EAPs) — which include CESG amounts and investment growth — are taxable income in the hands of the student. Contributions returned to the subscriber are returned tax-free. Students at low income typically pay little or no tax on EAPs.
- What happens to the CESG if the child does not attend post-secondary?
- If no qualifying educational program is attended and no sibling beneficiary can be named, accumulated CESG and growth must be repaid to the government when the RESP is collapsed. The subscriber may transfer up to $50,000 of RESP growth to their own RRSP if room is available; amounts above the transfer limit are taxed plus a 20% penalty tax.
- Does the CESG continue until the child turns 18?
- CESG payments stop after the calendar year the child turns 17. Special eligibility conditions apply for 16- and 17-year-olds: the RESP must have received at least $2,000 in contributions before December 31 of the year the child turned 15, or at least $100 in contributions in each of four years before that date.
- Can an RESP cover multiple children?
- A family RESP plan allows multiple beneficiaries (siblings). CESG is calculated per beneficiary: each child has their own $7,200 lifetime grant limit. The $50,000 lifetime contribution limit also applies per beneficiary, not per account.