What Is an RESP?
An RESP lets your savings for a child's education grow tax-sheltered, and the government adds 20% on the first $2,500 you contribute each year. Here is every grant and bond, the age limits, the contribution rules and how the money comes out.
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What is an RESP and how does the grant work?
An RESP, or Registered Education Savings Plan, is a government-registered account that helps you save for a child's education after high school, with tax-sheltered growth. The Canada Education Savings Grant adds 20% on the first $2,500 you contribute each year, up to $500 a year and $7,200 per child over their lifetime.
What is an RESP, and what does RESP stand for?
RESP stands for Registered Education Savings Plan. It is a registered savings account for a child's post-secondary education, such as university, college, a trade school or an apprenticeship. You open it with a bank, credit union or other provider, name a child as the beneficiary and contribute. Growth inside the plan is not taxed while it stays there.
The big attraction is free government money. The federal government adds grants to your contributions, and some provinces add their own. Low-income families can also receive the Canada Learning Bond without contributing anything.
An RESP sits alongside other registered accounts. If you are saving for yourself rather than a child, read what is a TFSA and what is an RRSP.
How much does the government contribute to an RESP?
The federal government contributes 20% of what you put in, through the Canada Education Savings Grant, up to $500 a year and $7,200 per child in total. Lower and middle-income families get up to $100 more a year, and low-income families can receive up to $2,000 more through the Canada Learning Bond. British Columbia and Quebec add their own grants.
| Program | How much | Who qualifies | Contribution needed? |
|---|---|---|---|
| Basic CESG | 20% of the first $2,500 a year, up to $500 | Every eligible beneficiary to the end of the year they turn 17 | Yes |
| Additional CESG | An extra 20% or 10% of the first $500 a year, up to $100 or $50 | Adjusted family net income up to $117,045 | Yes |
| Canada Learning Bond | $500 the first year plus $100 a year to age 15, up to $2,000 | Children born in 2004 or later in low-income families | No |
| BC Training and Education Savings Grant | $1,200 once | Eligible B.C. children aged 6 to 8 | No |
| Quebec Education Savings Incentive | 10% of contributions, up to $250 a year plus up to $50 extra, $3,600 lifetime | Quebec-resident beneficiaries | Yes |
| Lifetime CESG limit | $7,200 | Basic and additional CESG combined |
Figures checked October 2026; confirm current amounts with the Government of Canada RESP pages and your provincial government.
How does the Canada Education Savings Grant work?
The Canada Education Savings Grant (CESG) is paid into the RESP when you contribute: 20 cents for every dollar on the first $2,500 per child each year. Your provider applies for it automatically once the child has a Social Insurance Number. Lower and middle-income families also get an additional grant on the first $500 contributed each year.
The additional CESG depends on adjusted family net income, and the thresholds are indexed every year. The table shows what a $2,500 contribution earns in 2026.
| Adjusted family net income | Basic CESG | Additional CESG | Total grant |
|---|---|---|---|
| Up to $58,523 | $500 | $100 (20% of the first $500) | $600 |
| $58,523 to $117,045 | $500 | $50 (10% of the first $500) | $550 |
| Over $117,045 | $500 | None | $500 |
There is no minimum contribution to get the grant. A $50 deposit earns $10, and the 20% applies to every dollar up to $2,500. Unused basic grant room carries forward, so you can catch up later, but the basic grant is capped at $1,000 a year. It takes a $5,000 contribution to collect two years of grant at once.
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What is the maximum RESP grant?
The maximum RESP grant is $7,200 of CESG per child over their lifetime, combining basic and additional grant. In a single year the most is usually $500 to $600, or up to $1,000 of basic grant when catching up on missed years. To collect the full $7,200 from basic grant alone you need $36,000 of contributions in the right years.
- Contribute $2,500 a year for 14 years, from the year of birth through the year the child turns 13: 14 × $500 = $7,000 of grant.
- Contribute $1,000 the next year: 20% of $1,000 = $200, bringing the total to $7,200.
- Total contributed: 14 × $2,500 + $1,000 = $36,000, which is $7,200 ÷ 20%.
- Families who receive the additional CESG reach $7,200 sooner, because the extra $50 or $100 a year counts toward the same lifetime limit.
Starting late is fine. A family that opens an RESP when the child is 8 can contribute $5,000 a year to collect $1,000 of grant annually and still reach the maximum before the child turns 17. Model the growth with the compound interest calculator.
What is the Canada Learning Bond?
The Canada Learning Bond (CLB) is a federal payment into an RESP for children born in 2004 or later in low-income families. It pays $500 for the first year of eligibility and $100 for each further year up to age 15, to a maximum of $2,000, plus $25 toward opening costs. No contribution is required.
- Eligibility is based on adjusted family net income and the number of children, checked each year, so a child can qualify in some years and not others.
- Retroactive. Missed years are paid once the RESP is opened and the bond is requested.
- Deadlines. A parent or caregiver can request it until the day before the child turns 18. The beneficiary can claim it themselves until the day before they turn 21.
- Low-cost plans. Some providers offer RESPs with no fees, so the bond can be collected without putting in any money.
Are there provincial RESP grants, including in Ontario?
Only British Columbia and Quebec currently pay provincial RESP grants. B.C. offers a one-time $1,200 grant, and Quebec adds 10% of contributions through the QESI. Ontario has no provincial RESP grant, so Ontario families get the federal CESG and Canada Learning Bond only. Saskatchewan's SAGES grant has been suspended since 2018.
British Columbia (BCTESG)
The B.C. Training and Education Savings Grant pays $1,200 into an RESP for eligible children between age 6 and the day before they turn 9. No contribution is needed, but the plan must be open and the grant requested in that window.
Quebec (QESI)
The Quebec Education Savings Incentive adds 10% of net contributions, up to $250 a year, plus up to $50 more for lower and middle-income families. Unused amounts carry forward, and the lifetime maximum is $3,600. The RESP trustee applies for it.
Ontario, Alberta and other provinces
No provincial grant is currently paid, so families rely on the federal CESG and Canada Learning Bond. Saskatchewan has paid no SAGES on contributions made after 31 December 2017.
What are the RESP age limits?
The CESG is paid until the end of the calendar year the child turns 17, and grants at 16 and 17 need earlier saving. The Canada Learning Bond builds to age 15 and must be claimed before 21. You can contribute until the 31st year of the plan, and the plan must close by the end of its 35th year.
| Rule | Limit |
|---|---|
| CESG paid on contributions | Until 31 December of the year the child turns 17 |
| CESG at ages 16 and 17 | Only if $2,000 was contributed before the end of the year they turned 15, or at least $100 a year in any four years before then |
| Canada Learning Bond accumulates | To 31 December of the year the child turns 15 |
| Canada Learning Bond must be claimed | Before the beneficiary turns 21 |
| BC Training and Education Savings Grant | Request between age 6 and the day before age 9 |
| Last year for contributions | The 31st year of the plan (35th for a plan for a beneficiary with a disability) |
| Plan must close | By the end of its 35th year (40th for a plan for a beneficiary with a disability) |
The practical message: start before the child turns 15, even with small amounts, so the grant stays available at 16 and 17.
What are the RESP contribution limits and rules?
There is no annual RESP contribution limit, but there is a lifetime limit of $50,000 per beneficiary across all plans and contributors. Government grants do not count toward it. Going over triggers a tax of 1% per month on the excess until it is withdrawn. Most families contribute $2,500 a year, the amount that collects the full basic grant.
- Individual plan. One beneficiary, who does not have to be related to you.
- Family plan. One or more beneficiaries related to you by blood or adoption. Useful for siblings, because savings can be shared if one child does not continue studying.
- Group plan. Offered by group plan dealers, with set contribution schedules and rules. Read the terms and fees carefully before you sign.
- Shared limits. Grandparents and others can open their own plan for the same child, but everyone shares the $50,000 contribution limit and the grant limits.
How do RESP withdrawals work?
When the child enrols in qualifying post-secondary education, money comes out in two parts. Your original contributions can be withdrawn tax-free. Grants and investment growth come out as Educational Assistance Payments (EAPs), which are taxed as the student's income. Because most students have low incomes, they often pay little or no tax on them.
- Confirm enrolment. The provider needs proof that the student is enrolled in a qualifying program.
- Request an EAP. Ask for grant and growth money to be paid to the student. In the first 13 consecutive weeks of a full-time program, EAPs are capped at $8,000, or $4,000 for part-time study.
- Withdraw contributions as needed. These go to you or the student, tax-free.
- Keep receipts. Track tuition, books, housing and transportation so you can plan each withdrawal. Our student budget guide helps plan the school years.
What happens if your child does not go to school?
If the beneficiary does not pursue post-secondary education, you can keep the plan open in case they enrol later, since an RESP can stay open until the end of its 35th year. You can also name a new beneficiary, such as a sibling, and keep the grants within limits.
If you close the plan, your contributions come back to you tax-free, but the grants must be returned to the government. Investment growth can be withdrawn as an Accumulated Income Payment, taxed as income plus an extra 20% tax, or 12% for Quebec residents. You can avoid the extra tax on up to $50,000 by moving it to your RRSP or your spouse's, if you have the contribution room.
How to fit RESP contributions into your family budget
The easiest way to save $2,500 a year is about $208 a month by automatic transfer. If that is too much, any amount still earns the 20% grant, and you can catch up on missed grant room later when money allows.
EMOH Pay lets you set a savings goal for each child's RESP, track contributions against it and see the plan in your net worth. With family sharing, both parents see the same numbers from their own logins. It is free to start. For the bigger picture of what children cost, read the cost of raising a child in Canada and how to budget for a baby, and use our savings goal calculator to set a monthly amount. Families receiving the Canada Child Benefit sometimes direct part of each payment into the RESP; the CCB payment dates make a natural transfer schedule.
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Get started free➜What Is an RESP?: frequently asked questions
How much should I put in an RESP each year?
Many families contribute $2,500 per child each year, which collects the maximum basic grant of $500. Over 14 or 15 years this reaches the $7,200 lifetime grant limit. Any smaller amount still earns the 20% grant.
Is there a minimum RESP contribution to get the grant?
No. The CESG is 20% of whatever you contribute, up to $2,500 a year, so even $25 a month earns a grant. The Canada Learning Bond needs no contribution at all.
How much money does the government match for an RESP?
The government matches 20% through the basic CESG, up to $500 a year. Families with adjusted net income up to $117,045 in 2026 get an extra 10% or 20% on the first $500, for $550 or $600 a year.
Can grandparents open an RESP?
Yes. Anyone can open an individual RESP for a child, including grandparents, aunts, uncles or family friends. All plans for the same child share the same $50,000 lifetime contribution limit and the same grant limits.
Is RESP money taxable?
Your contributions come out tax-free. Grants and investment growth are paid as Educational Assistance Payments and taxed as the student's income, which is often low enough that little or no tax is due.
What is the Canada Learning Bond?
It is a federal payment for children born in 2004 or later in low-income families. It starts at $500, adds $100 a year up to $2,000, and does not require any contribution. You only need to open an RESP to receive it.
Is there an RESP grant in Ontario?
No. Ontario does not pay a provincial RESP grant. Ontario families receive the federal CESG, the additional CESG if eligible and the Canada Learning Bond.
Can I use an RESP for college or trade school?
Yes. Qualifying programs include university, college, CEGEP, trade schools and apprenticeships, in Canada and many abroad, as long as they meet the program length and enrolment rules.
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