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RESP: Registered Education Savings Plan Guide Canada 2026

Updated

The RESP is one of the most powerful education savings tools in Canada because of the government grants attached to it. Every $2,500 you contribute per year earns a free $500 from the government — a guaranteed 20% return on the first $2,500, before any investment growth.

How the RESP works

  1. Open an RESP account with a bank, credit union, robo-advisor, or investment dealer
  2. Name a beneficiary (your child, grandchild, or any child under 18)
  3. Contribute any amount up to the $50,000 lifetime cap
  4. The government adds CESG (and potentially CLB for lower incomes)
  5. All growth is tax-deferred — no tax on gains while money is in the account
  6. Withdrawals for education (EAPs) are taxed in the student’s hands — usually at 0% or very low rates

Government grants

Canada Education Savings Grant (CESG)

Annual ContributionBasic CESGEnhanced CESG (family income $55,867–$111,733)Enhanced CESG (under $55,867)
$2,500$500 (20%)$550 (first $500 gets extra 10%)$600 (first $500 gets extra 20%)
$1,000$200$250$300
$500$100$150$200
  • Lifetime maximum: $7,200 per child
  • Carry-forward: One year of unused room can be caught up each year (by contributing $5,000 to get $1,000 CESG)
  • Age cutoff: No CESG after December 31 of the year the child turns 17 (with special restrictions at 15–17)

Canada Learning Bond (CLB)

Available to children from families receiving the National Child Benefit Supplement (NCBS) / whose families have low income:

  • $500 in the first year of eligibility
  • $100/year for up to 15 additional years
  • Maximum $2,000 total
  • No RESP contribution required to receive the CLB

Contribution strategy

Child’s AgeStrategy
Birth–5Prioritize $2,500/year to maximize CESG; CLB eligible families should open RESP immediately at birth
6–14Continue $2,500/year; can catch up one missed year by contributing $5,000
15–17Restrictions apply: CESG only available if $2,000 contributed before age 16 or $100 in 4 eligible years
UniversityWithdraw EAPs (Educational Assistance Payments) — taxed in student’s hands

Withdrawals

Post-Secondary Education Payments (PSE): Return of original contributions — completely tax-free at any time.

Educational Assistance Payments (EAPs): Grants + investment growth. Taxed as the student’s income. Because most students have low income, the effective rate is often 0–15%.

EAP limits: $8,000 in the first 13 weeks of full-time enrollment. No limit after first 13 weeks.

RESP withdrawal strategy:

  1. Withdraw PSE (contributions) last, EAPs first — student pays little-to-no tax
  2. If student is earning income, delay some EAPs to lower-income years
  3. Government requires a “proof of enrollment” document for EAPs

RESP articles

Guides & fundamentals

Strategy & decision guides

Rules & edge cases

Where to open

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