Education savings

CESG: the basic grant, catch-up room and additional help

Separate the usual basic grant from carried-forward room, income-based additions and lifetime limits.

The key idea

Basic Canada Education Savings Grant (CESG) is 20% of eligible RESP contributions: ordinarily up to $500 a year, or up to $1,000 with sufficient unused room. Additional CESG is separate. Eligibility and lifetime headroom still apply.

By FinForFam · Editorial update · Sources checked
Canada • Federal rules. CRA income table: 2025; ESDC income table: 2026.
How these guides are prepared

Basic CESG and carry-forward belong together

For an eligible beneficiary, $2,500 of contributions can attract $500 basic CESG. Qualifying unused grant room can allow basic CESG on up to $5,000 of contributions in a year, producing up to $1,000. You cannot collect all accumulated unused room in one unlimited payment. The lifetime CESG maximum is $7,200, counting basic and additional CESG across plans. CRA: Canada Education Savings Grant

Additional CESG is not the same as catch-up

Depending on adjusted family net income, additional CESG may add 10% or 20% on the first $500 contributed in the year. It shares the CESG lifetime limit. Neither the $500 ordinary basic limit nor the $1,000 catch-up basic limit describes every family’s total annual CESG. ESDC: RESP benefit amounts and eligibility

Read the year above the official table. CRA’s linked summary displays 2025 thresholds; ESDC’s benefit-amount page has a table explicitly labelled 2026. We do not infer a contribution year from the page’s update date. Ask the promoter to confirm the applicable income information and grant history.

Check the beneficiary and age conditions

The beneficiary must have a SIN, be named in an RESP and be resident in Canada when the contribution is made. CESG is available through the calendar year they turn 17. ESDC: RESP benefit amounts and eligibility

For ages 16 or 17, at least one condition must have been met before the end of the calendar year they turned 15: at least $2,000 contributed and not withdrawn, or at least $100 contributed and not withdrawn in each of any four years. Starting for the first time at 16 does not bypass this history test. CRA: Canada Education Savings Grant

A grant is not an investment return

CESG is a benefit paid under programme rules, not a guaranteed percentage return on every dollar in the account. Future investment performance can still be negative. Contribution withdrawals or a change in education plans can lead to repayment of benefits; obtain the promoter’s explanation before moving money. ESDC: paying for education from an RESP

See it in practice

Three basic-only calculations

Illustrative eligible contributions in one calendar year
ContributionAssumed basic roomBasic CESG
$1,000At least $200$200
$2,500At least $500$500
$5,000At least $1,000, including unused prior room$1,000

Each row assumes the age/residency requirements and sufficient $7,200 lifetime headroom are satisfied. Multiplication is 20% of the contribution. If only $300 of lifetime CESG headroom remains, a $500 basic calculation is limited to $300. These examples exclude additional CESG, CLB, provincial benefits and growth; they do not calculate total entitlement.

Check your understanding

Is $1,000 the maximum total CESG in every catch-up year?

It is the basic CESG ceiling under the catch-up conditions. Additional CESG may also apply, within shared lifetime headroom. Keep basic and total amounts distinct.

A useful next step

Request all-plan contribution and CESG history from the promoter before planning catch-up. The RESP Planner needs those facts for its basic-only estimate and excludes additional CESG, CLB and provincial benefits.

Inspect the sources

Primary references checked September 18, 2026. A source check is not professional financial or legal review.

  1. CRA: Canada Education Savings GrantOngoing rule; income table explicitly 2025 · Federal
  2. ESDC: RESP benefit amounts and eligibilityCESG table 2026; CLB July 2026–June 2027 · Federal; BC/Quebec programmes identified separately
  3. ESDC: paying for education from an RESPCurrent at check · Federal; Quebec tax distinctions on some payments

Useful terms: CESG.