Tax-free accounts
How the RESP Grant Works in Canada
The Canada Education Savings Grant adds 20% to the first $2,500 you put in an RESP each year, up to $500 a year and $7,200 per child. How to get the full grant, catch up on missed years and qualify for the extra grant.
How much does the government add to an RESP?
The basic Canada Education Savings Grant (CESG) is 20% of your contributions, on the first $2,500 per child each year: up to $500 a year and $7,200 over the child’s lifetime.
| Yearly contribution | Basic grant (20%) |
|---|---|
| Top$1,000 | $200 |
| $2,000 | $400 |
| $2,500 | $500 |
| $5,000 | $500 |
The grant is paid into the RESP, where it grows tax-sheltered with your contributions. It is paid out to the student as part of educational assistance payments.
Put it into practiceTFSA vs RRSPIs there an extra grant for lower and middle incomes?
Yes. The additional CESG adds 10% or 20% on the first $500 contributed each year, depending on adjusted family net income. It does not raise the lifetime maximum.
| 2026 adjusted family net income | Additional CESG | Maximum yearly CESG |
|---|---|---|
| TopUnder $58,523 | 20% on the first $500 ($100) | $600 |
| $59,523 to $114,750 | 10% on the first $500 ($50) | $550 |
| Over $117,045 | Not eligible | $500 |
The 2026 income thresholds from the CRA are shown below. Families with lower incomes may also qualify for the Canada Learning Bond, which needs no contribution at all.
Can I catch up on missed RESP grant years?
Yes. Each child builds $500 of grant room a year from birth, and unused room carries forward. You can receive up to $1,000 of basic grant in a year by contributing up to $5,000.
Catching up takes time: at $1,000 a year, it takes several years to use a large backlog, which is why starting early matters.
Until what age can my child get the grant?
Grants are paid on contributions up to the end of the calendar year the child turns 17. For contributions at 16 or 17 to attract the grant, the RESP must already have had at least $2,000 contributed before the end of the year the child turned 15, or at least $100 a year in any four years before then.
In practice, open the RESP and start contributing before the end of the year your child turns 15.
Where can I open an RESP?
At most banks, credit unions and online brokers, and through group plan providers. Self-directed and bank RESPs let you choose your own savings, GICs or ETFs; group plans have their own rules and fees, so read them carefully.
Keep reading
Tax-free accountsTFSA vs RRSP: Which Is Better?When a TFSA beats an RRSP and vice versa, by income level, with the 2026 limits and the rules that decide it.
InvestingHow to Start Investing in CanadaA step-by-step guide to investing for beginners in Canada: which account to open (TFSA, RRSP or FHSA), DIY broker or robo-advisor, and what it costs. 7 brokers now charge $0 to trade.- Tax-free accountsTFSA Contribution Limit 2026The 2026 TFSA limit is $7,000. Total room for someone eligible since 2009 is $109,000. Every year’s limit, how room works, and where to hold your TFSA.
- Tax-free accountsRRSP Contribution Limit and Deadline 2026The 2026 RRSP limit is 18% of your 2025 earned income, up to $33,810. The deadline to contribute for the 2026 tax year is March 1, 2027.
Official sources and further reading
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