# RESP and CESG Explained: How to Get the $7,200 Grant

> How an RESP works in Canada: the 20% Canada Education Savings Grant, the $500 a year maximum, catching up missed years and the Canada Learning Bond.

Source: https://trykosh.com/learn/resp-and-cesg

Guide - RRSP, TFSA and FHSA

# RESPs and the CESG: getting every dollar of the education grant

A Registered Education Savings Plan is the only account where the government adds money to yours: 20% on the first $2,500 you contribute each year per child, up to $7,200 per child over their childhood. Here's how to collect it all, and what happens if you start late.

Updated October 31, 20263 min readBy the Kosh team

On this page[How an RESP works](#how-it-works)[The Canada Education Savings Grant (CESG)](#cesg)[Catching up missed years](#catch-up)[The Canada Learning Bond (CLB)](#clb)[Provincial grants](#provincial)[Individual, family or group plan?](#plan-types)[What if my child doesn't go to post-secondary?](#no-school)[FAQs](#faq)

## How an RESP works

You open an RESP for a child (the beneficiary) and contribute after-tax money. Contributions aren't deductible, but the growth and grants inside are sheltered. When the child goes to qualifying post-secondary education, the grants and growth come out as Educational Assistance Payments taxed in the student's hands, usually at little or no tax. Your original contributions can come back to you tax-free.

There's no annual contribution limit, but the **lifetime limit is $50,000 per beneficiary** across all RESPs. Contributions over that are taxed at 1% a month.

## The Canada Education Savings Grant (CESG)

For every child under 18, the federal government pays a **basic CESG of 20%** on contributions, up to **$500 a year** (which means contributing $2,500). The lifetime maximum is **$7,200** per child.

CESG by adjusted family net income, 2026

Family income (2026)

Extra grant

Max grant a year

Up to $58,523

Additional 20% on the first $500 (+$100)

$600

Up to $117,045

Additional 10% on the first $500 (+$50)

$550

Above $117,045

None

$500

The extra amount is called the Additional CESG. Income thresholds are indexed each year; check the current ones on canada.ca.

## Catching up missed years

Every child resident in Canada builds $500 of grant room a year from birth, whether or not an RESP exists. Unused room carries forward, but the grant in any one year is capped at **$1,000**, which means contributing $5,000 that year to catch up. Starting at age 5, say, you can recover missed grant by contributing $5,000 a year until you're caught up.

Watch the late-teen rule: for a child to get CESG at 16 or 17, the RESP must have received at least $2,000 in contributions before the end of the year they turned 15, or at least $100 a year in any four years before then.

## The Canada Learning Bond (CLB)

For children born in 2004 or later in low-income families, the government also pays the Canada Learning Bond: **$500 for the first eligible year and $100 for each later eligible year up to age 15, to a maximum of $2,000**, plus $25 toward opening costs. No contribution is required; you just need an RESP and a SIN for the child. It can be claimed until the child turns 21, so it's worth checking even for older kids.

## Provincial grants

Some provinces add their own incentives on top of the CESG, paid through your RESP provider. Ask your provider which ones apply where you live.

## Individual, family or group plan?

-   **Individual plan:** one beneficiary, anyone can be the subscriber.
-   **Family plan:** several beneficiaries related to you by blood or adoption; grants and growth can be shared among siblings if one doesn't go to school.
-   **Group plan:** pooled by age group with fixed contribution schedules and rules. Read the fees and what happens if you stop contributing before signing.

## What if my child doesn't go to post-secondary?

Your contributions come back to you tax-free. Grants go back to the government. The growth can be withdrawn as an Accumulated Income Payment, which is taxed as your income plus an additional tax, unless you move it into your RRSP where you have room (within limits). Ask your provider for the current rules before closing a plan. A family plan lets you shift to a sibling instead.

**Where Kosh fits**

Kosh tracks RESP contributions per child from your statements, works out how much grant is still unclaimed, and suggests a monthly amount that collects the full CESG each year.

## Frequently asked questions

How much do I need to put in an RESP to get the full grant?

$2,500 a year per child gets the maximum basic CESG of $500. Lower- and middle-income families get an extra $100 or $50 on the first $500 contributed.

What is the lifetime RESP grant limit?

The CESG is capped at $7,200 per child. The Canada Learning Bond is separate and adds up to $2,000 for eligible lower-income families.

Can I catch up on missed RESP grants?

Yes. Grant room of $500 a year builds from birth and carries forward, but you can receive at most $1,000 in CESG a year, so contribute $5,000 a year to catch up.

What is the RESP contribution limit?

$50,000 per beneficiary over their lifetime, across all RESPs. There is no annual limit. Over-contributions are taxed at 1% a month.

Are RESP contributions tax deductible?

No. You contribute after-tax money, but the growth and grants are sheltered and are taxed in the student's hands when withdrawn for education.

## Sources

-   [CRA: Canada Education Savings Grant (CESG)](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp/canada-education-savings-grant-cesg.html)
-   [CRA: Canada Learning Bond](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp/canada-learning-bond.html)
-   [CRA: RESP contributions](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/resp-contributions.html)

Written by the Kosh team and checked against the rules in force on October 31, 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk.

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