What Is an RESP? How the CESG and CLB Government Benefits Work

What an RESP is and who runs it

The Registered Education Savings Plan (RESP) is a federal long-term savings plan that helps people save for a child's education after high school, including trade schools, CEGEPs, colleges, universities and apprenticeship programs. An adult can also open an RESP for themselves.

You open an RESP with a financial institution, called the promoter. When you open the plan, you can ask your promoter to apply for benefits such as the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG). If the child is eligible, the money is paid into the RESP to help with education costs. Eligible expenses can include rent, tuition, books, tools and transportation.

The federal department responsible is Employment and Social Development Canada (ESDC).

The Canada Education Savings Grant (CESG)

CESG money is deposited directly into the child's RESP.

Basic CESG: regardless of family income, ESDC pays 20% of annual personal contributions made to all eligible RESPs for a qualifying beneficiary, to a maximum of $500 per beneficiary each year ($1,000 if there is unused grant room from a previous year), with a lifetime limit of $7,200.

Additional CESG is based on adjusted family net income and can change over time. The official 2026 chart:

Adjusted family net income below $58,523: an additional 20% on the first $500 contributed, i.e. $100; maximum yearly CESG $600.
Between $58,523 and $117,045: an additional 10%, i.e. $50; maximum yearly CESG $550.
More than $117,045: not eligible for the additional amount; maximum yearly CESG $500.

The lifetime maximum is $7,200 in all three income ranges.

Contributions must be made to the RESP to receive the CESG. If you do not receive the maximum in a given year, you can catch up in later years. Unused CESG room carries forward until the end of the year the child turns 17. With unused room, a subscriber can contribute more than $2,500 per year and receive up to 20% of contributions (up to $5,000), so a child could receive up to $1,000 of CESG per calendar year, as long as the $7,200 lifetime limit is not exceeded.

The Canada Learning Bond (CLB)

The CLB provides up to $2,000 per eligible child from families living with low income. No contributions are needed to get the CLB.

A beneficiary receives $500 in the first year of eligibility, then $100 for each eligible year up to and including age 15. The CLB is retroactive. A primary caregiver can request it until the day before the child turns 18. At 18, eligible beneficiaries must apply themselves, before the day before they turn 21.

To be eligible, the beneficiary must be a resident of Canada before payment, have a Social Insurance Number (SIN), be named as a beneficiary in an RESP, be born on or after January 1, 2004, and be from a family with low income. The primary caregiver must have filed income tax returns for each year they request the CLB and be eligible for the Canada Child Benefit (CCB).

For July 1, 2026 to June 30, 2027, the official income levels are: 1 to 3 children, adjusted income of $58,523 or less; 4 children, less than $66,036; 5 children, less than $73,577. Families with more than 5 children are asked to call 1 800 O-Canada (1-800-622-6232).

Age rules

The CESG is available until the end of the calendar year the beneficiary turns 17. The child must be a resident of Canada when the contribution is made, have a SIN, be named as a beneficiary, and be 17 or younger.

For 16- and 17-year-olds, at least one of two conditions must be met before the end of the calendar year the child turned 15:

at least $2,000 was contributed to (and not withdrawn from) the RESP
a minimum annual contribution of $100 was made (and not withdrawn) in at least four of the years before that point

The official page states that you must start saving before the end of the calendar year in which your child turns 15 for the child to be eligible for the CESG.

Every child under 18 who is a resident of Canada accumulates unused CESG room of $400 (1998 to 2006) and $500 (2007 and later years).

If the child does not pursue post-secondary education

The official page states that the CESG and accumulated earnings form part of the Educational Assistance Payments (EAP) paid out of the RESP to the beneficiary. If the beneficiary does not pursue post-secondary education, the CESG is returned to the government.

Where to ask

The official page states that if you have questions about the RESP, CLB or CESG, you should contact your RESP promoter first. For general inquiries, you can submit a form to the Canada Education Savings Program.

British Columbia and Quebec offer provincial benefits on top of the CLB and CESG. The Saskatchewan Advantage Grant for Education Savings (SAGES) has been suspended since January 1, 2018.