What a RESP is

A Registered Education Savings Plan is a registered account dedicated to saving for a child's post-secondary education. What sets the RESP apart from every other registered account is the federal grant that comes with it: the government will match 20% of what you contribute, up to $500 per year and $7,200 lifetime per child. There is no other Canadian account where the government simply tops up your contributions with cash.

Like an RRSP, growth inside a RESP is tax-deferred. When the child eventually withdraws the money to pay for school, the growth and grant portion are taxed in their hands — almost always at a very low rate because students have minimal income and large tuition and education credits.

The 2026 numbers at a glance

• Lifetime contribution limit per beneficiary: $50,000
• Annual CESG match: 20% of the first $2,500 contributed = $500
• Lifetime CESG cap per child: $7,200
• Additional CESG for lower-income families: 10–20% on the first $500 per year
• Canada Learning Bond: Up to $2,000 lifetime for low-income families, no contribution required
• Account lifespan: 35 years (40 if beneficiary qualifies for the Disability Tax Credit)

CESG calculator — estimate your grant

Enter your planned annual contribution to see exactly how much Canada Education Savings Grant your child will receive. Toggle "carry-forward" if you're catching up on a year you missed.

How the CESG works

The Canada Education Savings Grant matches 20% of every dollar you contribute, up to $2,500 of contributions per year. The math is straightforward: contribute $2,500 → get $500 of CESG. Contribute $5,000 in a single year and the CESG still caps at $500 — but you can claim one year of unused CESG room, so the maximum CESG payable in any single year is $1,000 on a $5,000 contribution.

The lifetime CESG cap is $7,200 per child, which works out to roughly 14.5 years of maxed-out $2,500 contributions. To get the full grant, you typically need to start contributing by age 4 or so.

Lower-income families also receive an additional CESG of 10% (middle-income) or 20% (lower-income) on the first $500 contributed each year. The thresholds adjust annually with inflation.

CESG match by family income (2026)

AFNI thresholds align with federal tax brackets and adjust each year with inflation. Source: ESDC — CESG.

The Canada Learning Bond

The CLB is a separate federal grant for children born in 2004 or later whose family qualifies based on income and number of children. It pays $500 in the first eligible year and $100 in each subsequent eligible year up to age 15, with a $2,000 lifetime maximum. Critically, the CLB requires no RESP contribution — the government simply deposits it into the open account. As of 2024, the federal government automatically opens RESPs and deposits CLB amounts for eligible children, but families should still verify with their financial institution.

Family vs individual RESPs

A family plan can have multiple beneficiaries, but they must all be related to the subscriber by blood or adoption — children, grandchildren, siblings. Funds can be shared between siblings if one ends up not pursuing post-secondary education.

An individual plan has one beneficiary who does not need to be related to the subscriber. This is the structure used for non-family scenarios (godchildren, unrelated children, self-funded adult RESPs).

Group RESPs (sometimes sold by scholarship trust providers) are a third structure that pools contributions across many children. They tend to have higher fees, restrictive contribution schedules, and harsh penalties if a child does not attend school. Most independent advisors recommend self-directed family or individual plans instead.

Withdrawing from a RESP

Once the beneficiary enrolls in a qualifying post-secondary program, two types of withdrawal are possible:

• Post-Secondary Education (PSE) withdrawals: Return of original contributions. Not taxable to anyone.
• Educational Assistance Payments (EAPs): Withdrawal of grants and investment earnings. Taxable in the student's hands. Limited to $8,000 in the first 13 weeks of full-time enrollment, then unlimited.

Most subscribers strategically draw EAPs first, while the student has tuition credits and low income — even a $20,000 EAP often results in zero tax owing. For the full mechanics — required documents, the part-time $4,000 limit, and how the 13-week cap resets — see our RESP withdrawal rules deep-dive.

What if the child does not pursue post-secondary?

The plan can stay open for up to 35 years, so there is no rush. If the child ultimately does not enroll:

• Contributions can be withdrawn tax-free by the subscriber
• CESG and CLB grants must be repaid to the government
• Investment earnings can be withdrawn as an Accumulated Income Payment (AIP) — fully taxable to the subscriber plus a 20% surtax
• Up to $50,000 of investment earnings can be transferred tax-free into the subscriber's RRSP if there is room available, avoiding the surtax

Common RESP mistakes

1. Front-loading $50,000 in year one. You only get one year of CESG ($500), losing $6,700 of lifetime grant money.
2. Not contributing $2,500/year consistently. The CESG is the highest-return part of the RESP; missing it means leaving up to $500/year on the table.
3. Holding equities right up to age 18. A market drop the year before school starts can shrink withdrawal capacity. Glide path to bonds and cash in the final 3–5 years.
4. Withdrawing contributions first. Take EAPs first, while tuition credits and low student income absorb the tax bill.
5. Locking into a group/scholarship-trust RESP. The fees and rigid contribution rules usually underperform a self-directed plan at a discount broker.

What changes in 2026

No structural changes to RESPs were announced in the 2026 federal budget. The CESG match rate, lifetime cap, and contribution limits are all unchanged.