Question 1

How is the CESG calculated?

Accepted Answer

The basic Canada Education Savings Grant is 20% of your annual RESP contributions, up to a maximum of $500 per year per beneficiary. To get the full $500, you contribute $2,500 each year. CESG is deposited directly into the RESP by Employment and Social Development Canada (ESDC), typically within 4–6 weeks of the contribution being reported by your financial institution.

Question 2

What is the Additional CESG?

Accepted Answer

On top of the 20% basic CESG, lower-income families receive an Additional CESG on the first $500 contributed each year. Families with net income at or below approximately $58,523 (2026, indexed annually) get an extra 20% — adding $100/year. Families with income between $58,523 and $117,045 get an extra 10% — adding $50/year. Above the upper threshold, only the basic 20% applies.

Question 3

How do I claim unused CESG room?

Accepted Answer

Unused CESG room carries forward automatically — there is no application. If you didn't contribute the full $2,500 in a past year, that year's grant room rolls over. You can use carry-forward room by contributing more than $2,500 in a later year: the CESG cap doubles to $1,000/year ($500 basic on $2,500 current-year plus $500 on $2,500 of carry-forward). The annual cap during catch-up is hard at $1,000, even if you contribute much more.

Question 4

Is there a lifetime CESG cap?

Accepted Answer

Yes. The CESG lifetime maximum is $7,200 per beneficiary across all RESPs combined. This cap applies whether you receive only the basic 20% or also the Additional CESG. At $500/year of basic CESG, the cap is reached after 14.4 years of full contributions; with the Additional CESG, slightly faster. Once $7,200 has been paid, no further CESG is deposited even if you continue contributing.

Question 5

Until what age is CESG available?

Accepted Answer

CESG is paid on contributions made until December 31 of the calendar year the beneficiary turns 17. However, restrictive rules apply for ages 16 and 17: either at least $2,000 in contributions before age 16, or at least $100/year in contributions for at least four years before age 16, must be on record. Without that history, no CESG is paid for ages 16–17.

Question 6

Who can open an RESP to claim CESG?

Accepted Answer

Any Canadian resident with a Social Insurance Number can open an RESP for a beneficiary who also has a SIN. The subscriber is typically a parent, but grandparents, aunts/uncles, family friends, or even the beneficiary themselves (as an adult) can open and contribute to an RESP. CESG is paid based on the beneficiary, regardless of who subscribed.

Question 7

Does CESG affect my taxes when withdrawn?

Accepted Answer

CESG (and investment growth) flows out of the RESP as part of the Educational Assistance Payment (EAP), which is taxable to the student in the year of withdrawal. Because most students have low income, the actual tax owed is usually minimal or zero (basic personal amount + tuition tax credits often offset it entirely). Your original contributions come back tax-free regardless.

Question 8

What if my child doesn't go to school — do I lose the CESG?

Accepted Answer

Yes. If no beneficiary of the RESP uses it for qualifying post-secondary education, all CESG (and any Additional CESG, CLB, and provincial grants) must be repaid to the government when the plan is collapsed. Your own contributions come back tax-free. The investment growth becomes an Accumulated Income Payment (AIP), taxable plus a 20% penalty — unless transferred to your RRSP (up to $50,000, subject to room and eligibility).

Question 9

Do A-CESG, IQEE, and BCTESG count toward the $7,200 CESG cap?

Accepted Answer

A-CESG (the Additional CESG paid at 10% or 20% on the first $500 contributed each year for lower-income families) IS included in the $7,200 federal cap. The IQEE (Quebec, $3,600 lifetime) and the BCTESG (British Columbia, one-time $1,200) are provincial grants and do NOT count toward the $7,200. A maxed-out Quebec family can therefore collect $7,200 federal + $3,600 provincial = $10,800 in grants. A maxed-out BC family with the BCTESG can collect $7,200 + $1,200 = $8,400.

CESG Calculator

Federal CESG only

Plan Details

Already contributed and received

Savings Breakdown

Education Savings Growth

Related calculators

Frequently Asked Questions