An RESP has no yearly limit, but it has a lifetime limit of $50,000 per beneficiary, and going over it costs a monthly tax until the excess comes out. This page explains how the limit is counted, how the tax works when several people contribute, and how to fix an excess. The account basics are in the complete RESP guide, and every related guide is listed in the RESP hub.
How the limit is counted
- Per child, across all plans. Contributions to every RESP that names the child count: a parent’s plan, a grandparent’s plan, the other parent’s plan, and the child’s share of a family plan.
- Lifetime, not yearly. Money withdrawn doesn’t free up room. Contributions refunded earlier still count toward the limit.
- Contributions only. Grants and investment growth don’t count.
The limit is separate from the grant. Contributions above $2,500 in a year earn no basic CESG (or above $5,000 when catching up), but they are allowed as long as the lifetime total stays within $50,000. The yearly grant rules are in our guide to maximising the CESG.
How the tax works
There is an excess contribution at the end of any month when all subscribers' contributions to all RESPs for a beneficiary (not counting government grants) exceed the $50,000 lifetime limit; each subscriber pays 1% a month on their share until it is withdrawn, filed on Form T1E-OVP, and withdrawn amounts still count toward the limit.Each subscriber pays 1% a month on their share of the excess that hasn’t been withdrawn by the end of the month. It is simple, not compounding: the same excess costs the same amount each month.
Example. Contributions for a child across all plans reach $52,000, so the excess is $2,000.
- Tax per month: $20
- If it takes 6 months to withdraw: $120
The tax is calculated on Form T1E-OVP, which also works out each subscriber’s share when more than one has contributed for the child.
Who pays when there are several plans
The tax falls on the subscribers, not the child. When a parent and a grandparent both contribute for the same child, each is liable for their own share of the excess, and Form T1E-OVP is how each share is worked out. Coordinating before contributing is simpler than sorting it out on the form afterward.
Separated parents with two plans for the same child share the limit the same way; our page on RESPs for divorced parents covers how the two plans interact.
Common ways it happens
A grandparent opens a second plan. A parent has contributed $40,000 over the years. A grandparent opens a plan and contributes $15,000. The child’s total is $55,000, which is $5,000 over.
A plan is moved between providers. A transfer doesn’t add to the total: each contribution is treated as if it had been made to the receiving plan. Checking that the new provider records the transferred contributions as transfers, not new money, avoids a false excess.
A plan is closed and a new one opened. Contributions to the closed plan still count toward the lifetime limit, even though the new provider can’t see them.
How to fix an overcontribution
- Stop contributing to every plan for the child.
- Add up all contributions across all plans and subtract $50,000.
- Ask the provider to refund that amount of contributions. The refund isn’t taxable. No grant has to be repaid if the child’s excess across all plans is $4,000 or less at the time of the withdrawal; for a larger excess, ask the provider how much grant has to be repaid.
- File Form T1E-OVP for each year an excess existed, and pay the tax it shows.
RESP and RRSP overcontributions compared
| RESP | RRSP | |
|---|---|---|
| Limit | $50,000 lifetime per beneficiary, all plans combined | Your own deduction limit |
| Tax on the excess | 1% a month | 1% a month |
| Buffer before the tax applies | None | $2,000 |
| Form | T1E-OVP | T1-OVP |
| Fix | Withdraw the excess | Withdraw it, or let new room absorb it |
Keeping track
When more than one person contributes for a child, one shared running total avoids most problems:
| Plan | Subscriber | Contributions to date |
|---|---|---|
| Plan A | Parent | $35,000 |
| Plan B | Grandparent | $12,000 |
| Total for the child | $47,000 | |
| Room left | $3,000 |
The same record shows whether the child’s combined contributions are enough to earn each year’s grant. If the plan is later closed without being used for school, the contribution history also sets how much comes back tax-free, as explained in transferring an RESP to an RRSP.
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and October 1, 2026. How we check facts.
- Canada Revenue Agency: Registered Education Savings Plans (RESPs)
- Canada Revenue Agency: RRSPs and Other Registered Plans for Retirement