CESG (Canada Education Savings Grant)
The Canada Education Savings Grant (CESG) is a federal grant that matches 20% of annual RESP contributions, up to $500 per year on the first $2,500 contributed. The lifetime CESG maximum is $7,200 per beneficiary. Low-income families may qualify for an additional 10–20% match on the first $500 contributed. CESG eligibility ends the year the child turns 17. Unused grant room can be carried forward, allowing up to $1,000 in CESG in a single catch-up year.
How it works
CESG room begins accumulating from a child's birth, whether or not an RESP has actually been opened yet — so a family that waits several years before opening an account hasn't lost the matching opportunity, only delayed claiming it. Once the RESP is open, unused room from earlier years can be caught up, though the catch-up is capped at $1,000 of CESG in any single year, meaning you can contribute up to $5,000 in a catch-up year, since 20% of $5,000 is $1,000, even though the normal annual matching threshold is $2,500.
Lower-income families can qualify for an additional CESG top-up of 10-20% on the first $500 contributed each year, on top of the base 20% match. This additional amount is assessed annually based on family income, separately from the base grant, so eligibility for the top-up can change from year to year even while the base CESG keeps flowing.
The $7,200 lifetime CESG maximum is a hard ceiling per beneficiary: once a child's RESP has received the full $7,200, no further CESG is paid on future contributions, even if the child hasn't yet turned 17 and even if you keep contributing. The RESP itself can still keep growing tax-free after that point — it's only the government matching that stops.
Example: catching up on missed CESG matching room
Suppose you didn't contribute to your child's RESP for the first few years. Because unused CESG room carries forward rather than disappearing, you can catch up later.
Contributing $5,000 in a single catch-up year earns 20% x $5,000 = $1,000 in CESG for that year — the maximum allowed in any one catch-up year, even though the standard annual matching threshold is only $2,500.
Frequently asked questions
Does the CESG count toward the RESP's overall lifetime contribution limit?
No — the lifetime contribution limit applies only to what you as the subscriber contribute yourself; CESG grant payments from the government are added on top and don't use up any of that room.
Can I still receive CESG on RESP contributions after my child turns 17?
No. CESG eligibility ends in the calendar year your child turns 17, so contributions made after that birthday no longer attract matching, even though you can still contribute to the RESP itself.
If I withdraw RESP money for something other than education, do I lose the CESG?
Generally yes — CESG amounts tied to a non-qualifying withdrawal are typically repayable to the government, which is one reason families often transfer unused RESP balances rather than withdrawing them outright.