What is the CESG?
When you open a Registered Education Savings Plan (RESP) for a child, the federal government may add extra money on top of your contributions. This top-up is called the Canada Education Savings Grant (CESG), a federal program available to Canadian families.
In simple terms, for every dollar you put into the RESP (up to a certain amount), the government adds 20 cents. That 20% “bonus” then grows alongside your own contributions.
How the basic 20% grant works
- 20% on the first $2,500 you contribute for a child each year
- That works out to a maximum basic grant of $500 per year, per child
- There is a lifetime CESG limit of $7,200 per child
Here are a few quick examples:
- Contribute $1,000 → grant is $200
- Contribute $2,000 → grant is $400
- Contribute $2,500 or more → grant is capped at $500 for that year
You can still contribute more than $2,500 in a year if it fits your plan, but the basic CESG won’t increase once you hit the $500 yearly maximum.
Additional CESG for lower and middle-income families
Families with lower or middle incomes may qualify for an extra 10–20% grant on the first $500 of contributions each year.
- You still receive the regular 20% CESG
- You may receive an extra 10% or 20% on the first $500, depending on income
Income thresholds and rules can change, so check current details with the Government of Canada or your RESP provider.
Annual and lifetime limits at a glance
- Annual CESG limit: usually $500 per child
- Maximum annual with catch-up: up to $1,000 per child
- Lifetime CESG limit: $7,200 per child
The RESP itself has a $50,000 lifetime contribution limit per child.
What if you start late or skip a year?
- Unused CESG room carries forward
- You can earn CESG on up to $5,000 in one year
- That’s up to $1,000 of CESG per year
The FinForFam helps you test contribution patterns and catch-up strategies.
What happens if your child doesn’t go to school?
- Your contributions remain yours
- Unused CESG is usually returned to the government
- Investment growth may be taxable depending on how the plan is closed
How CESG fits with your overall plan
- Balance RESP with RRSP, TFSA, and mortgage goals
- Aim to capture some CESG each year
- Increase contributions later if possible
New to RESPs?
If you’re just getting started, you may want to read our RESP basics guide, then follow up with how much to contribute to an RESP each month .
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