A Registered Education Savings Plan (RESP) is a registered account designed to help save for a beneficiary’s post-secondary education in Canada.
RESP contributions are not tax-deductible, but investment income can grow inside the plan without being taxed each year. Eligible beneficiaries may also receive federal education savings incentives such as the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).
In 2026, the main numbers to understand are the $7,200 lifetime CESG maximum, the $50,000 lifetime RESP contribution limit per beneficiary, and the income thresholds that determine whether a child may receive additional CESG or the Canada Learning Bond.
How an RESP Works in Canada
An RESP involves three main roles:
- Subscriber: the person who opens the RESP and makes contributions.
- Beneficiary: the person whose post-secondary education the RESP is intended to support.
- Promoter: the financial institution or organization that offers and administers the RESP.
Parents and grandparents commonly open RESPs, but other people may also be able to establish an individual plan.
For normal RESP contributions, the beneficiary generally needs a valid Social Insurance Number and must be a Canadian resident when the contribution is made.
See the CRA overview of Registered Education Savings Plans for the federal RESP rules.
RESP Contributions Are Not Tax-Deductible
Unlike an RRSP contribution, money contributed to an RESP does not create an income-tax deduction for the subscriber.
The tax benefit occurs inside the account. Investment earnings are generally not taxed while they remain in the RESP.
When the beneficiary later receives an Educational Assistance Payment, the portion consisting of government grants and accumulated investment earnings is generally taxable to the beneficiary.
The subscriber’s original contributions were made with after-tax money and can generally be returned without being included in income, although contribution withdrawals can affect government grants in some circumstances.
Basic CESG: 20% on the First $2,500
The basic Canada Education Savings Grant generally adds 20% of eligible annual RESP contributions, up to the first $2,500 contributed for a beneficiary in a calendar year.
| Annual Contribution | Basic CESG |
|---|---|
| $500 | $100 |
| $1,000 | $200 |
| $2,000 | $400 |
| $2,500 | $500 |
For example, an eligible $2,500 contribution can generate a standard basic CESG of $500.
The basic CESG is available regardless of family income when the beneficiary otherwise meets the program requirements.
The federal lifetime CESG maximum is $7,200 per beneficiary, including both basic and additional CESG.
See the official Canada Education Savings Grant rules.
2026 Additional CESG Income Limits
Some beneficiaries may receive an additional CESG on the first $500 contributed during the year. Eligibility is based on adjusted family net income.
| 2026 Adjusted Family Net Income | Additional CESG on First $500 | Maximum Additional Amount |
|---|---|---|
| $58,523 or less | 20% | $100 |
| More than $58,523 and up to $117,045 | 10% | $50 |
| More than $117,045 | No additional CESG | $0 |
The basic 20% CESG remains separate from these additional amounts.
For example, an eligible beneficiary in the lowest 2026 income band could receive up to $600 of CESG on $2,500 of qualifying contributions for the year: $500 basic CESG plus up to $100 additional CESG.
The lifetime CESG ceiling remains $7,200.
Current federal thresholds are available through the Government of Canada education savings grant calculator and amount guide.
Unused CESG Room Can Carry Forward
A beneficiary does not necessarily lose unused basic CESG room simply because no RESP contribution was made in a particular year.
Unused CESG room can carry forward, subject to the program rules and the beneficiary’s age.
If sufficient unused CESG room is available, up to $5,000 of contributions in one calendar year can potentially attract the basic 20% CESG.
That can produce up to $1,000 of basic CESG in one year.
| Situation | Eligible Contribution for Basic CESG | Potential Basic CESG |
|---|---|---|
| No unused CESG room | Up to $2,500 | Up to $500 |
| Sufficient unused CESG room | Up to $5,000 | Up to $1,000 |
The beneficiary can continue using available CESG room only while meeting the applicable CESG eligibility rules, and the lifetime $7,200 CESG maximum still applies.
Monthly Contributions Are Not Required for the CESG
A contribution of approximately $208.33 per month adds up to roughly $2,500 over 12 months, but monthly contributions are not a federal CESG requirement.
Eligible contributions can be made using different schedules depending on the RESP contract, including periodic contributions or lump-sum contributions.
CESG is determined by eligible contributions, available grant room and the other program requirements rather than by a requirement to deposit money every month.
RESP Contribution Limit: $50,000 per Beneficiary
There is currently no annual RESP contribution limit.
Instead, the main contribution ceiling is a $50,000 lifetime limit for each beneficiary across all RESPs.
This limit applies across plans, not separately to each account.
For example, if parents and grandparents maintain separate RESPs for the same child, their combined contributions count toward that child’s $50,000 lifetime limit.
Government payments such as CESG and CLB are not counted as personal contributions when determining whether the $50,000 contribution limit has been exceeded.
CRA explains the contribution rules in its RESP contributions guide.
What Happens if the $50,000 Limit Is Exceeded?
An RESP excess contribution can occur when contributions made by all subscribers to all RESPs for the same beneficiary exceed the applicable lifetime limit.
A tax of 1% per month may apply to a subscriber’s share of an RESP over-contribution until the excess amount is withdrawn.
Because multiple RESPs for one beneficiary share the same lifetime contribution ceiling, contribution records from different subscribers need to be considered together.
A $50,000 Lump-Sum Contribution Does Not Generate $10,000 of CESG
The absence of an annual RESP contribution limit does not mean every dollar of a large contribution receives a 20% federal grant.
CESG is subject to annual grant limits, available unused grant room, age restrictions and the lifetime $7,200 CESG maximum.
A subscriber may therefore contribute a large amount within the $50,000 lifetime RESP limit while only part of that contribution qualifies for CESG.
Canada Learning Bond: Up to $2,000 Without Personal Contributions
The Canada Learning Bond is a separate federal education savings benefit for eligible children from lower-income families.
Unlike the CESG, personal RESP contributions are not required to receive the CLB.
An eligible beneficiary may receive:
- $500 for the first year of eligibility
- $100 for each additional eligible year through age 15
- up to $2,000 total
The CLB is available to eligible beneficiaries born in 2004 or later.
The federal government also provides a one-time $25 amount with the initial CLB payment to recognize an incidental cost that may be associated with opening an RESP.
See the official Canada Learning Bond guide.
2026–2027 Canada Learning Bond Income Threshold
CLB eligibility depends in part on adjusted income and the number of qualifying children.
For the benefit period from July 1, 2026 to June 30, 2027, the adjusted income threshold for a family with one to three children is $58,523 or less.
Higher thresholds apply to larger families.
The complete indexed thresholds are listed in the Government of Canada 2026–2027 CLB income bulletin.
Older Youth May Be Able to Claim the CLB Retroactively
The Canada Learning Bond can include amounts from earlier years in which the beneficiary was eligible.
Eligible youth who are old enough to enter into an RESP contract in their province or territory may be able to open their own RESP and request the CLB for themselves.
The beneficiary must generally be under age 21 when applying for the CLB.
CESG Rules for Beneficiaries Age 16 or 17
The CESG is generally available until the end of the calendar year in which the beneficiary turns 17, but additional contribution-history requirements apply at ages 16 and 17.
Before the end of the calendar year in which the beneficiary turns 15, at least one of the following conditions must generally have been met:
- at least $2,000 was contributed to the beneficiary’s RESP and not withdrawn, or
- at least $100 per year was contributed and not withdrawn in any four previous years.
If neither condition is satisfied, contributions made when the beneficiary is 16 or 17 generally will not qualify for CESG.
Individual RESP vs Family RESP
An RESP can be structured in different ways depending on the promoter.
Individual RESP
An individual RESP is established for one beneficiary. The beneficiary does not generally need to be related to the subscriber.
Family RESP
A family RESP can include more than one beneficiary.
For family plans, beneficiaries generally must be related to each living subscriber by blood relationship or adoption under the RESP rules.
Each beneficiary still has an individual $50,000 lifetime contribution limit.
Government grants and bonds also remain subject to beneficiary-specific eligibility requirements.
How RESP Money Is Invested
The types of investments available inside an RESP depend on the financial institution and the specific plan.
Depending on the provider, an RESP may hold eligible investments such as savings products, guaranteed investment certificates, mutual funds, exchange-traded funds or other qualified investments.
Investment returns are not guaranteed, and the value of market-based investments can rise or fall.
For a general explanation of Canadian brokerage accounts, ETFs and registered investing terminology, see our How to Buy Stocks in Canada 2026 guide.
Using the Canada Child Benefit for RESP Contributions
Some households choose to use part of their Canada Child Benefit payments for RESP contributions, but there is no requirement to do so.
CCB payments are not automatically transferred into an RESP.
For current benefit dates and income rules, see our Canada Child Benefit 2026 guide.
What Happens When the Beneficiary Starts Post-Secondary Education?
RESP money can generally be paid in two main forms once the beneficiary qualifies.
Return of Contributions
The subscriber’s original contributions were made with after-tax money and can generally be returned without being included in income.
Educational Assistance Payments
An Educational Assistance Payment, or EAP, generally consists of government education savings incentives and accumulated investment earnings.
EAPs are generally taxable to the beneficiary and are reported on a T4A slip.
The beneficiary must meet the applicable enrolment requirements for a qualifying or specified post-secondary educational program.
EAP Limits During the First Weeks of Study
Federal rules place limits on EAPs when post-secondary studies first begin.
| Program Type | Initial EAP Limit |
|---|---|
| Qualifying educational program | $8,000 during the first 13 consecutive weeks |
| Specified educational program | $4,000 during a 13-week period |
After a student completes 13 consecutive weeks in a qualifying educational program and continues to qualify, the initial $8,000 limit generally no longer applies.
If the student later has a 12-month period without the required 13 consecutive weeks of qualifying enrolment, the initial limit may apply again.
Higher EAP amounts may be approved in certain circumstances.
See the CRA’s RESP payment and EAP rules.
What Can an EAP Be Used For?
EAPs are intended to assist the beneficiary with post-secondary education.
Depending on the circumstances, reasonable education-related expenses can include costs associated with:
- tuition
- books and course materials
- housing
- transportation
- computers or equipment required for study
- other reasonable living or education expenses related to attending the program
The RESP promoter is responsible for administering payments under the plan and may request proof of enrolment or other supporting information.
What if the Beneficiary Does Not Attend University?
An RESP is not limited to traditional university programs.
Eligible post-secondary education can include qualifying programs at colleges, trade schools and other designated educational institutions.
If the beneficiary ultimately does not pursue eligible post-secondary education, the treatment of each part of the RESP is different.
- The subscriber’s original contributions can generally be returned.
- Unused CESG generally has to be returned to the government unless specific transfer rules apply.
- Unused CLB generally has to be returned to the government.
- Accumulated investment earnings may qualify for an Accumulated Income Payment under specific conditions.
Accumulated Income Payments Can Have Additional Tax
If RESP investment earnings are eventually paid to a subscriber as an Accumulated Income Payment (AIP), the amount is generally subject to regular income tax plus an additional tax.
The additional federal tax is generally 20%, or 12% for residents of Quebec.
Under certain conditions, an eligible subscriber may be able to transfer up to $50,000 of accumulated income to their RRSP or their spouse’s or common-law partner’s RRSP, provided the applicable requirements are met and sufficient RRSP contribution room is available.
Because AIP rules are more restrictive than normal RESP education withdrawals, the specific plan terms and CRA requirements need to be checked when an RESP is being closed.
See the federal RESP management, transfer and tax guide.
RESP grant planning: $100 a month versus catching up later
Families do not have to contribute exactly $2,500 once a year. The basic CESG generally equals 20% of eligible contributions, subject to a $500 annual basic grant cap when there is no unused grant room. An eligible child who has missed grant years may receive up to $1,000 of basic CESG in a later year, provided there is sufficient unused grant room and the other rules are met.
| Illustrative annual contribution | Basic CESG illustration | Important condition |
|---|---|---|
| $100/month = $1,200/year | $240 | Subject to eligibility and grant room |
| $2,500 per year | $500 | Normal annual basic maximum |
| $5,000 per year | Up to $1,000 | Needs unused basic CESG room carried forward |
These figures exclude any additional CESG tied to family income, which can increase the total grant. Contributions above the amount needed for the available grant do not earn unlimited matching money, and the lifetime CESG cap is $7,200.
Decision check: review the child’s age, unclaimed grant room and the available cash before trying to catch up. CESG eligibility generally ends after the calendar year a beneficiary turns 17, and special prior-contribution rules can apply at ages 16 and 17. See Canada’s CESG and Canada Learning Bond examples for 2026 income thresholds and grant rules. Even a modest automatic contribution can be useful if it fits the household budget.
RESP 2026 Key Numbers at a Glance
| RESP Rule | 2026 Amount or Rule |
|---|---|
| Basic CESG rate | 20% of eligible contributions |
| Standard contribution amount that generates $500 basic CESG | $2,500 |
| Standard annual basic CESG maximum | $500 |
| Potential basic CESG with sufficient carry-forward room | Up to $1,000 per year |
| Lifetime CESG maximum | $7,200 per beneficiary |
| RESP annual contribution limit | No annual limit |
| RESP lifetime contribution limit | $50,000 per beneficiary across all RESPs |
| Canada Learning Bond | Up to $2,000 |
| Full-time initial EAP limit | $8,000 during first 13 consecutive weeks |
| Part-time EAP limit | $4,000 during a 13-week period |
Frequently Asked Questions
How much CESG can a child receive?
The lifetime CESG maximum is $7,200 per beneficiary, including basic and additional CESG.
How much needs to be contributed to receive the standard $500 basic CESG?
A $2,500 eligible annual contribution generally generates the standard maximum basic CESG of $500 when the beneficiary has sufficient grant room.
Can missed CESG be caught up later?
Unused CESG room can carry forward. With sufficient unused room, up to $5,000 of contributions in a calendar year may attract up to $1,000 of basic CESG.
Is there an annual RESP contribution limit?
No. For 2007 and later years, there is no annual RESP contribution limit. The lifetime contribution limit is $50,000 per beneficiary across all RESPs.
Does the Canada Learning Bond require a parent contribution?
No. Eligible beneficiaries can receive the CLB without personal RESP contributions.
What is the maximum Canada Learning Bond?
The lifetime maximum is $2,000, consisting of an initial $500 payment plus $100 for each additional eligible year through age 15.
Are RESP contributions tax-deductible?
No. RESP contributions are not deducted from the subscriber’s taxable income.
Who pays tax when RESP education money is withdrawn?
Educational Assistance Payments containing grants and accumulated investment income are generally taxable to the beneficiary. Original subscriber contributions can generally be returned without being included in income.
Can grandparents open an RESP?
Yes. A grandparent can generally be an RESP subscriber. If multiple people open plans for the same beneficiary, their combined contributions still count toward the beneficiary’s $50,000 lifetime limit.
Can an RESP be used for college or trade school?
Yes, provided the beneficiary is enrolled in an eligible post-secondary program at a qualifying educational institution under the RESP rules.
Disclaimer: This article provides general educational information and is not individualized tax, investment or financial advice. RESP contracts, grant eligibility, provincial incentives, investment options and withdrawal rules can vary. Confirm current requirements with the Government of Canada and the RESP provider before making contributions, withdrawals or transfers.
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