How Much Does the Government Contribute to an RESP? (2026)

How Much Does the Government Contribute to an RESP?

If you are saving for a child's education in Canada, the Registered Education Savings Plan (RESP) comes with a perk no ordinary savings account can match: the federal government adds money of its own. It is called the Canada Education Savings Grant (CESG).

How much does the government actually contribute? The short answer: 20% of what you put in each year, up to $500 a year, to a lifetime maximum of $7,200 per child. Lower-income families can get even more. Below, we break down exactly how the grant works, who qualifies, and the mistakes that can cost

you free money.

What Is the CESG?

The Canada Education Savings Grant is a federal grant paid directly into a child's RESP by Employment and Social Development Canada (ESDC). You do not apply for it separately in most cases: when you open an RESP with a bank, credit union or other RESP provider and your child has a Social Insurance Number (SIN), the provider requests the grant on your behalf.

The grant is not a loan, and you do not pay it back as long as the money is eventually used for qualifying post-secondary education. To qualify, the child (the RESP beneficiary) must be a resident of Canada with a valid SIN, and the RESP must be set up before the end of the calendar year in which the child turns 17.

How Much Does the Government Pay? The Numbers

Here are the official CESG figures, straight from the Government of Canada:

CESG detail	Amount
Basic grant rate	20% of annual RESP contributions
Annual grant on the first $2,500 contributed	Up to $500 per year, per child
Lifetime CESG maximum	$7,200 per child
Lifetime RESP contribution limit	$50,000 per child (no annual contribution limit)
Grant eligibility ends	End of the calendar year the child turns 17

In plain terms: contribute $2,500 in a year and the government adds $500. Contribute $1,000 and it adds $200. To collect the full $7,200, a family needs to contribute $36,000 over time — roughly $2,500 a year, or about $208 a month, over 14–15 years.

A Worked Example: The $2,500-a-Year Family

Meet Priya and Marc, who open an RESP when their daughter is born and contribute $2,500 every year. Here is what the grant alone adds, before any investment growth:

• Each year: $2,500 contributed → $500 CESG added. Total in the plan: $3,000.
• After 10 years: $25,000 contributed → $5,000 in grants. Total: $30,000, before growth.
• After 14.4 years: $36,000 contributed → the full $7,200 grant reached. Total: $43,200, before growth.

That $7,200 is free money for education — a 20% instant return that no savings account or GIC can match, with investment growth on top, growing tax-deferred until withdrawal. By contrast, a family starting when their child is 10 and contributing $2,500 a year for 8 years collects only $4,000 in grants. Starting early is the single biggest lever.

Missed a Year? Unused Grant Room Carries Forward

One of the most useful CESG rules is carry-forward. If you contribute less than $2,500 in a year — or nothing at all — the unused grant room rolls forward. In a later year you can then contribute up to $5,000 and receive up to $1,000 in CESG ($500 for the current year plus $500 of carried-forward room). You can never receive more than $1,000 of basic CESG in a single year, so catching up takes time — and you need enough years left before age 17 to use the room up.

Can Lower-Income Families Get More Than 20%?

Yes. The Additional CESG pays an extra grant on the first $500 contributed each year, on top of the basic 20%:

• Extra 20% (another $100 a year) for families with adjusted net income up to about $55,867 (2025 threshold, indexed annually).
• Extra 10% (another $50 a year) for families with adjusted net income roughly between $55,867 and $111,733.

Your RESP provider determines eligibility from your tax return, so filing taxes every year matters even if you owe nothing. For a lower-income family, the total grant on the first $500 can therefore reach 40% — $200 of grants on a $500 contribution.

There is also a separate grant worth knowing about: the Canada Learning Bond (CLB). It pays up to $2,000 per eligible child — $500 in the first year plus $100 for each additional year up to age 15 — and requires no contributions at all. Many eligible families never claim it, so check with your provider if you think you may qualify.

Rules and Deadlines That Catch People Out

The age 16 and 17 rule

CESG is paid only until the end of the calendar year the beneficiary turns 17. For contributions at ages 16 and 17, the grant is paid only if at least $2,000 was withdrawn from the RESP before the child turned 16, or at least $100 was contributed in each of four years before the child turned 16. Do not leave the first contribution until high school.

What if your child does not go to post-secondary school?

If the beneficiary does not pursue qualifying education, the grant money must be repaid to the government. Your own contributions, however, are yours: they can be withdrawn tax-free (they were made with after-tax dollars), transferred to another child's RESP, or, in some cases, moved to your RRSP. This is a key reason the RESP is low-risk — the grant is the only part at stake.

One grant per child, across all RESPs

The $7,200 lifetime limit applies per child, not per account. If grandparents and parents each open an RESP for the same child, the grant is shared across them. Coordinate contributions so you do not over-contribute: contributions above the $50,000 lifetime limit do not earn grants and can complicate withdrawals.

How to Make Sure You Get the Full $7,200

• Open the RESP early — ideally in your child's first year, so grant room starts building.
• Get a SIN for your child — no SIN, no grant.
• Aim for $2,500 a year (about $208 a month) to collect the full $500 annual grant.
• Use catch-up years — contribute up to $5,000 in a year to claim $1,000 of grant when you have carried-forward room.
• File your taxes every year — this is how Additional CESG and CLB eligibility is assessed.
• Check for the Canada Learning Bond — up to $2,000 with no contributions required, if you qualify.
• Coordinate with family — one $7,200 limit per child, shared across every RESP in their name.

Related reading: our full guide to RESPs explained: how Canada helps you save for education covers contribution limits and withdrawals in detail, and TFSA vs RRSP: where should Canadians put money first? helps you decide where education savings fit beside your own retirement plans.

Frequently Asked Questions

How much does the government contribute to an RESP?

The federal government pays the Canada Education Savings Grant: 20% of your annual RESP contributions, up to $500 a year, to a lifetime maximum of $7,200 per child. Lower-income families can receive an additional 10% or 20% on the first $500 contributed each year.

How much do I need to contribute to get the maximum $500 CESG each year?

Contribute $2,500 in the year. The grant is 20% of contributions, so $2,500 × 20% = $500. If you have unused grant room from earlier years, you can contribute up to $5,000 in one year and receive up to $1,000 in basic CESG.

Can you get the CESG if you start an RESP late?

Yes, as long as contributions are made before the end of the calendar year the child turns 17 and the age 16–17 conditions are met. You can also use carried-forward room to catch up, up to $1,000 of CESG per year.

What is the Canada Learning Bond, and is it different from the CESG?

Yes. The Canada Learning Bond is a separate grant of up to $2,000 for eligible lower-income families, and it requires no contributions at all. The CESG, by contrast, is a 20% match on money you contribute. A child can receive both, paid into the same RESP.

Do I have to pay the CESG back?

Only if the money is not used for qualifying post-secondary education. Then the grant portion is returned to the government, but your own contributions remain yours to withdraw or transfer.

Last updated: 2026-10-25. Figures are based on Government of Canada / CRA guidance for the Canada Education Savings Grant and Canada Learning Bond. Thresholds for the Additional CESG are indexed annually — check the current year's figures before contributing.

Disclaimer: This article is for educational purposes only and is not financial advice. RESP, CESG and CLB rules can change, and the right savings plan depends on your family's situation. Consider speaking with a licensed financial advisor in Canada before making contribution decisions.