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The Canada Education Savings Grant adds 20% to the first $2,500 you put into a registered education savings plan each year. That is up to $500 a year and $7,200 for each child over a lifetime. Families with lower and middle incomes get an extra $100 or $50 a year on top. The student, not the person who saved, pays tax on the grant when it is paid out.
How much grant does an RESP earn each year?
The basic grant is 20% of the first $2,500 contributed for a beneficiary in a calendar year. The additional grant depends on adjusted family net income. The thresholds on the Canada.ca page for 2026 are $58,523 and $117,045, which match the first two federal tax brackets for 2026.
| Adjusted family net income (2026) | Basic grant | Extra grant on first $500 | Most you can get in a year | Years to reach $7,200 |
|---|---|---|---|---|
| Under $58,523 | $500 | $100 (20%) | $600 | 12 |
| $58,523 to $117,045 | $500 | $50 (10%) | $550 | 14 |
| Over $117,045 | $500 | None | $500 | 15 |
The last column is our own arithmetic and assumes the full $2,500 goes in every year. In the 14th and 15th years the final grant is smaller, because the grant stops at the $7,200 lifetime cap.
The grant is available until the end of the calendar year the child turns 17. For a 16 or 17 year old, the plan must have had at least $2,000 in total contributions, or at least $100 contributed in any four earlier years, before the end of the year the child turned 15.
Can you catch up on grant room you missed?
Yes. Unused grant room accumulates, so if you contribute less than $2,500 in a year, you can contribute more later and still get 20%. In one calendar year the grant on catch-up contributions is limited to $1,000, which means putting in $5,000. The room carries forward as long as the $7,200 lifetime maximum is not exceeded.
What is the Canada Learning Bond?
The Canada Learning Bond is for children in families with lower incomes, and you do not have to contribute anything to get it. It pays $500 in the first eligible year and $100 for each later eligible year up to age 15, to a lifetime maximum of $2,000. The child must be born on or after January 1, 2004. The income cut-off from July 1, 2026 to June 30, 2027 is $58,523 of adjusted family income for one to three children, under $66,036 for four and under $73,577 for five. A caregiver can request it until the day before the child turns 18, and the beneficiary can apply alone before turning 21.
How are RESP withdrawals taxed?
Contributions are not deductible going in, and they come out tax-free. The grants and the investment growth are taxed when they are paid out as educational assistance payments (EAPs), and the tax lands on the student. A student with little income often pays little or none. Full-time students can take up to $8,000 in the first 13 consecutive weeks of enrolment, and part-time students up to $4,000 for every 13 weeks. See scholarships and bursaries for how that income is handled differently from awards.
| Money paid out | Who pays the tax | How |
|---|---|---|
| Your own contributions | Nobody | Returned tax-free to the subscriber or given to the student |
| Grants and growth as an EAP | The student | Added to the student’s income |
| Growth not used for school (accumulated income payment) | The subscriber | Regular tax rate plus an extra 20% (12% if living in Quebec) |
What happens if the child does not go to school?
You have four options: keep the plan open, name a new beneficiary, move the money to another registered savings plan, or close it. Contributions always come back to you without tax. The grant can go to a sibling with unused room, and otherwise it goes back to the government, as must any unused Canada Learning Bond. Growth can be paid to you as an accumulated income payment, taxed as in the table, or moved to your own or your spouse’s RRSP. Up to $50,000 of growth can go to an RRSP tax-free if the conditions are met; see RRSP basics for room rules.
Time limits matter. You can contribute for 31 years after the plan opens and the money must be used within 35 years. The lifetime contribution limit is $50,000 per beneficiary across all plans, and an over-contribution costs 1% a month until you take it out.
What does a worked example look like?
A family with adjusted net income under $58,523 opens an RESP for a newborn and puts in $2,500 every year, or about $208 a month. Each year the plan earns the $500 basic grant plus $100 extra, which is $600. After 12 years the family has contributed $30,000 and collected $7,200, and the grant is maxed out. Contributions can keep going after that, but they earn no more grant. The calculator on this site runs your own numbers: RESP and grant calculator.
What could change?
The 2026 thresholds for the extra grant and the bond come from the Canada.ca page as it stands today. The thresholds for the next benefit year have not been published yet (checked 31 October 2026), so do not assume the 2026 numbers carry over. Check the official sources: Government of Canada: How much money benefits could add to the RESP and Government of Canada: Managing the RESP, taxes and transfers. For the next-year numbers, see 2026 vs 2027 tax numbers.
Where does this information come from?
Figures come from the Government of Canada education savings pages: How much money benefits could add to the RESP, Pay for education using the RESP, Managing the RESP, and How RESPs and related benefits work together. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
How much is the Canada Education Savings Grant?
The basic grant is 20% of the first $2,500 contributed each year, which is up to $500 a year. Lower-income families get an extra $100 and middle-income families an extra $50 a year. The lifetime maximum is $7,200 per beneficiary, whatever the family income.
Can I carry forward unused grant room?
Yes. Unused grant room accumulates, so you can contribute more than $2,500 in a later year and still receive 20%. You can contribute up to $5,000 to receive a maximum of $1,000 in grant in one calendar year, as long as the $7,200 lifetime limit is not exceeded.
Who pays tax on RESP withdrawals?
Your contributions come out tax-free. Educational assistance payments, which hold the grants and investment growth, are taxed in the student's hands, and many students pay little or none. Growth not used for school is taxed to the subscriber at their rate plus an extra 20%.
What happens to the RESP if my child does not study after high school?
You can keep the plan open, switch to another beneficiary, move the money to another registered plan or close it. Contributions return to you tax-free. The grant can go to a sibling with unused room, and otherwise it goes back to the government.
Do you need to contribute to get the Canada Learning Bond?
No. The Canada Learning Bond needs an RESP but no contributions. It pays $500 in the first eligible year and $100 a year after that up to age 15, to a maximum of $2,000 for a child born on or after January 1, 2004, in a lower-income family.
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