RESP: How to Get the Full Government Grants

CESG rules, and how withdrawals are taxed

Scott Tang, CPAUpdated 2026-11-052026 rules4 min read

When you save for your child's education, the biggest benefit of an RESP is that the government adds money directly: for every $100 you contribute, the federal government adds $20 (the Canada Education Savings Grant, CESG). Each child can receive up to $7,200 over their lifetime. The key to getting the full amount is to contribute $2,500 a year. You can catch up on years you missed, but you can catch up at most one missed year each year.

20%

On the first $2,500 contributed each year, the government adds 20% = $500

$1,000

If there is unused basic grant room from past years, basic CESG is up to $1,000 a year (additional CESG is separate)

$7,200

Lifetime CESG limit per child

$50,000

Lifetime RESP contribution limit per child

How to get the full $7,200

Starting from birth

Contribute $2,500 a year

Receive $500 a year

Full amount in about 14–15 years

The simplest approach

Started late or missed some years

Contribute $5,000 a year

Receive $1,000 a year (catching up one year)

Recover the room you missed

Grant room builds up every year, but you can catch up only one year at a time

Newcomers. Grant room only starts building up from the year your child becomes a Canadian resident; earlier years don't count. To apply for the grant, both the child and the subscriber need a SIN. After the end of the year the child turns 17, no more grants can be paid. For a child to receive grants at age 16 or 17, by the end of the year the child turns 15 there must be total contributions of at least $2,000, or contributions of at least $100 a year in at least 4 years (with none of it withdrawn).

More for lower-income families

Canada Learning Bond (CLB)
For eligible lower-income families, the government pays up to $2,000, without you having to contribute anything yourself.
Additional CESG
For families with lower income, the grant rate on the first $500 contributed is higher.
Provincial grants
British Columbia and Quebec have provincial education grants; Ontario currently doesn't.

How the money comes out when your child goes to school

What comes out	Withdrawn while the child is in school Educational assistance payments (EAPs)	The child doesn't go to school The money has to come out
The contributions you put in	✓Tax-free; can go to the child or to you	✓Tax-free; returned to you
Government grants	◐Paid as part of an EAP and included in the child's income	✕Must be repaid to the government
Investment earnings	◐Paid as an EAP and included in the child's income (students have low income, so the tax is usually small)	◐Can be withdrawn as an accumulated income payment (AIP) only if conditions such as how long the plan has existed and the beneficiary's age are met; included in your income, plus an extra 20% tax; transferring to an RRSP (up to $50,000) also has its own conditions

The contributions you put in

🎓 Withdrawn while the child is in school: ✓Tax-free; can go to the child or to you
🚫 The child doesn't go to school: ✓Tax-free; returned to you

Government grants

🎓 Withdrawn while the child is in school: ◐Paid as part of an EAP and included in the child's income
🚫 The child doesn't go to school: ✕Must be repaid to the government

Investment earnings

🎓 Withdrawn while the child is in school: ◐Paid as an EAP and included in the child's income (students have low income, so the tax is usually small)
🚫 The child doesn't go to school: ◐Can be withdrawn as an accumulated income payment (AIP) only if conditions such as how long the plan has existed and the beneficiary's age are met; included in your income, plus an extra 20% tax; transferring to an RRSP (up to $50,000) also has its own conditions

Points to watch

Contribute by December 31
Grants are calculated by calendar year, so the year's $2,500 must be in by December 31.
Family plans
If you have more than one child, you can open a family RESP, and earnings and contributions can be used flexibly among siblings (grants are tracked separately for each child).
Studying abroad works too
Full-time programs at qualifying universities outside Canada can generally receive EAPs as well.
Over-contributions are penalized too
The amount over the $50,000 lifetime limit is penalized at 1% a month.

How Sheng Qian CPA can help

Work out what you can still catch up
Based on your child's age and the year they became a resident, we work out how much grant they can still receive and how much to contribute each year.
Year-end reminder
We remind you before December 31 to put in that year's contribution.
Less tax on withdrawals
While your child is in school, we plan how to withdraw contributions and EAPs in stages so that the tax falls on the child; for prices, see "What Sheng Qian CPA Can Do for Investors: Tax Returns, Accounts and Annual Planning" in this series.

Sources

Government of Canada: Registered Education Savings Plans (RESPs)
Government of Canada: CESG and CLB amounts and conditions
CRA: Registered education savings plans (RESPs)

Disclaimer

This article is general information only and is not tax or investment advice. Everyone's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.