RESP and CESG in 2026: how it works, with a worked example

Questions people ask

How much should I put in an RESP each year?

$2,500 per child captures the full $500 basic CESG for the year. Beyond that there is no grant (except catch-up on missed years), so extra money is often better in a TFSA. Over 14.4 years of $2,500 the grant reaches its $7,200 lifetime cap.

Can I catch up if I started late?

Yes. Grant room accumulates from the child's birth whether or not an RESP exists, and you can claim up to $1,000 of basic grant in one year on $5,000 of contributions. A child who starts at 8 can still reach the full $7,200 by 17 with $5,000 a year for a few years.

What is the Canada Learning Bond?

$500 in the first year and $100 a year until the child turns 15 (up to $2,000) for children from families with income up to about $58,500 (more with four or more children). No contribution is needed; you just have to open an RESP.

What are the Quebec and BC grants?

Quebec's QESI adds 10% of contributions up to $250 a year ($3,600 lifetime), with carry-forward. BC pays a one-time $1,200 grant if you apply between the child's 6th and 9th birthdays, with no contribution required.

What happens if my child doesn't go to school?

Contributions come back tax-free. Grants are returned to the government. Growth can be transferred to your RRSP (up to $50,000 if you have room) or withdrawn with tax plus a 20% penalty. The plan can stay open for 35 years, so a change of mind later is fine.

How are withdrawals taxed?

Educational assistance payments (grants and growth) are taxed in the student's hands, usually at little or no tax. Your own contributions come out tax-free at any time.

Is there a deadline each year?

December 31. Grant is paid on the contribution year, and the 16/17 rule requires either $2,000 of total contributions or $100 a year in four years before the year the child turns 16 for the last two years to attract grant.

How much do I need to contribute to get the full grant?

$2,500 a year ($208 a month) earns the maximum $500 basic CESG; keep it up for 14.4 years and you reach the $7,200 lifetime grant. Contributing more than $2,500 in a year does not earn more grant unless you have unused room from earlier years.

I started late. Can I catch up?

Yes. Unused grant room carries forward from the year of birth, and you can collect up to $1,000 of grant in one year by contributing $5,000. The catch-up line shows how many years of $5,000 contributions recover your unused room before the grant stops at the end of the year your child turns 17.

Is a big lump sum at birth better than monthly contributions?

For growth, yes; for the grant, no. The grant is capped at $500 a year, so $50,000 on day one earns only $500 of grant that year and forgoes the rest. A common approach is $2,500 a year for the grant plus any extra lump sum you can spare, up to the $50,000 lifetime contribution limit.

What are the extra grants for lower incomes?

Families with net income under about $58,000 get an additional 20% on the first $500 contributed ($100), and under about $117,000 an extra 10% ($50). The Canada Learning Bond adds up to $2,000 for lower-income families with no contribution required; Quebec adds a 10% QESI and BC a one-time $1,200 grant at age 6.