What is the CESG grant for RESP in 2026?
The federal government contributes 20% on the first $2,500 of eligible contributions per year — up to $500 per year — with a lifetime CESG maximum of $7,200 per beneficiary.
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Canada · 2026 RESP · FreeRESP Calculator Canada 2026
Project RESP growth with CESG grants to age 18
CESG included All provinces Free
RESP & CESG projector
Projection runs to age 18 (18 years remaining).
CESG is 20% on the first $2,500 contributed per year (max $500/yr), lifetime CESG cap $7,200. Subscriber contributions cap at $50,000 lifetime per beneficiary.
Applied once per year after contributions and CESG.
Shown for consistency with other Canadian tools; federal CESG rules apply nationwide.
Additional CESG for modest-income families and provincial learning bonds are not modeled here. This is an illustration only — not advice from Employment and Social Development Canada or a financial institution.
At age 18 (estimate)
$86,597
Projected RESP balance
- Total contributions
- $45,000
- Total CESG received
- $7,200
- Investment growth
- $34,397
- True cost of saving
- $37,800
True cost = your contributions minus CESG (net out-of-pocket after grants).
Contributions, CESG & investment growth (cumulative)
Your contributionsCESG (grants)Investment growth
The Registered Education Savings Plan (RESP) is Canada's most powerful education savings vehicle. The federal government adds a Canada Education Savings Grant (CESG) of 20% on the first $2,500 you contribute each year — that's $500 in free money annually, up to $7,200 lifetime per child. Contributing $2,500 per year starting at birth generates approximately $7,200 in CESG grants and significant tax-sheltered growth by the time your child turns 18.
RESP key rules 2026
| Rule | Detail |
|---|---|
| Annual CESG | 20% on first $2,500 contributed = $500/year |
| Lifetime CESG maximum | $7,200 per child |
| RESP lifetime contribution limit | $50,000 per beneficiary |
| Contribution deadline for CESG | December 31 of year child turns 17 |
| RESP account lifespan | Up to 35 years |
| Tax on growth | Tax-deferred; withdrawals taxed in student's hands (often low or zero tax on eligible post-secondary withdrawals) |
| If child doesn't attend post-secondary | Transfer to RRSP (limits and conditions apply) or return contributions; CESG and other grants may need to be repaid — confirm with CRA / your plan promoter. |
Disclaimer
This tool provides estimates only. RESP and CESG rules are administered by the Government of Canada and your RESP promoter. Additional CESG, Canada Learning Bond, provincial grants, family plans, and carry-forward of unused CESG are not modeled. Confirm eligibility and limits with Canada.ca or a qualified professional.
Frequently asked questions
How much should I contribute to RESP each year?
$2,500 per year maximizes the annual CESG ($500). Contributions above $2,500 can still grow tax-deferred in the RESP but do not earn additional federal CESG on the amount above $2,500.
What is the RESP contribution limit in Canada?
There is a $50,000 lifetime limit on subscriber contributions per beneficiary. There is no fixed annual contribution requirement, but CESG only applies to the first $2,500 of eligible contributions in a calendar year (subject to program rules).
What happens to RESP if my child doesn't go to university?
You may be able to transfer up to $50,000 of accumulated income to your RRSP if you have contribution room, withdraw your original contributions tax-free, and manage accumulated income according to CRA rules — but CESG and other grants generally must be repaid to the government if the beneficiary does not qualify for post-secondary education.
When should I open an RESP?
As early as possible — ideally at birth. Starting sooner means more years of potential CESG and tax-sheltered growth. A child who receives $2,500 in eligible contributions each year can reach the full $7,200 CESG lifetime cap in roughly 14–15 years.