Chapter 9. RDSP Canada Disability Savings Grant
Disclaimer: RDSP issuers
The information contained on this page is technical in nature. The target audience are issuers of the:
- Registered Disability Savings Plan (RDSP)
- Canada Disability Savings Grant (CDSG)
- Canada Disability Savings Bond (CDSB)
For general information, visit the RDSP page.
On this page
Alternate formats
A PDF version of the Registered Disability Savings Plan provider user guide is available on the index page.
List of acronyms
- BN
- Business number
- CCB
- Canada Child Benefit
- CDB
- Child Disability Benefit
- CDSA
- Canada Disability Savings Act
- CDSG
- Canada Disability Savings Grant
- CDSP
- Canada Disability Savings Program
- CRA
- Canada Revenue Agency
- CSAA
- Children's Special Allowances Act
- DTC
- Disability Tax Credit
- ESDC
- Employment and Social Development Canada
- PCG
- Primary Caregiver
- RDSP
- Registered Disability Savings Plan
- SIN
- Social insurance number
Introduction
The Canada Disability Savings Grant (CDSG) (grant) is a payment made by the Government of Canada to help persons with disabilities save for the future.
Before offering the grant, the Registered Disability Savings Plan (RDSP) providers must be authorized by Employment and Social Development Canada (ESDC).
The grant is based on contributions made to an RDSP for an eligible beneficiary as well as the beneficiary's family income.
The CDSG is a limited matching grant paid into an RDSP by the Government of Canada.
Depending on the amount contributed and the beneficiary's family income, the Government may contribute funds equivalent to 300%, 200%, or 100% of contributions made into an RDSP for a year.
An RDSP can receive grants of up to a maximum of $3,500 per year. However, with carry forward provisions, the annual maximum increases to $10,500. The maximum lifetime grant that may be paid on behalf of a beneficiary shall not exceed $70,000.
The grant may be paid on contributions made into an RDSP on or before December 31 of the calendar year in which the beneficiary turns 49 years of age.
9.1 How it works
The payment of the grant is based on the following requirements.
- A qualified holder must open an RDSP for an eligible beneficiary
- The holder makes and authorizes eligible contributions to the RDSP
- The holder and RDSP provider must ensure to understand and meet all eligibility criteria to be able to receive grants:
- otherwise, the grant will not be paid
- The holder submits the completed application form to the financial institution who transmits the request through an automated system to ESDC
9.2 Grant eligibility
To determine if a beneficiary is eligible for the grant, the following criteria and conditions must be met.
The contribution must:
- be made on or before December 31 of the year the beneficiary turns 49 years of age
- not be a rollover
The beneficiary must:
- be a resident of Canada at the time the contribution is made
- be approved for the Disability Tax Credit (DTC)
- have a valid social insurance number (SIN)
- be alive
The holder must:
- open an RDSP
- complete a grant and bond application form
- provide the signed application form directly to the financial institution on or before December 31 of the year the beneficiary turns 49 years of age
- deposit or authorize a contribution into the RDSP
- receive a children's special allowance for at least one month in the year to maximize the grant when the holder is an organization, and the beneficiary is under 18
- have a valid SIN or Business Number (BN)
- ensure that the lifetime limit of $200,000 of contributions is not exceeded
Note: The enhanced matching rate is available until December 31 of the year as the beneficiary turns 18. The special allowance ceases to be payable when the child reaches 18 years old.
The financial institution must:
- have received approval and authorization from the Canada Revenue Agency (CRA) and ESDC to offer the RDSP, the grant and the bond
- ensure the information on the application form is accurate and complete
- submit the information electronically for processing to ESDC
- complete any required action as a result of processing with ESDC such as correct SIN numbers, add missing information
- receive and distribute grant payments to the RDSP
- provide statements of account to the holder
9.2.1 Grant annual matching rates
The Canada Disability Savings Act (CDSA) sets out the amount of grant that may be paid into an RDSP.
Based on the beneficiary's family income and the annual contribution amount, the Government of Canada will contribute grants at rates of 300%, 200%, or 100%.
The CRA indexes the income thresholds annually. Income threshold amounts are used to determine the grant amount a beneficiary could receive each year. The month of January is used to set the grant matching rate for all contributions made in a given year.
| Beneficiary's family income | Matching grant | Maximum grant payable per Year |
|---|---|---|
| Less than or equal to the second threshold | On the first $500 grant equivalent to 300% ($3 for every $1 of eligible contributions) | $1,500 |
| Less than or equal to the second threshold | On the next $1,000 grant equivalent to 200% ($2 for every $1 of eligible contributions) | $2,000 |
| Greater than second threshold or if no income information is available from the CRA | On the first $1,000 grant equivalent to 100% ($1 for every $1 of eligible contributions) | $1,000 |
Note: For current income levels, refer to the CRA tax bracket thresholds table. The table provides information about tax bracket thresholds for the last 4 tax years. You can also visit our information bulletins page to find important information about RDSPs changes, including annual adjustments to income thresholds.
9.2.2 Family income
Family income is validated with information held by the CRA based on filed income tax returns.
The grant match rate is determined using income data from the second preceding tax year. Except for children in respect of whom the Canada Child Benefit (CCB) is first payable after the month of June of a given year. In which case the primary caregiver's (PCG) income from the previous year is used. This is because CRA does not complete processing the tax data from the immediately preceding year until the second half of the year. The only assessed income data available will be of the second preceding taxation year.
For example, the tax data used in January 2022 will be from 2020. It is also important to note that the determination of a beneficiary's family income will differ, depending on their age.
The holder should ensure the beneficiary's family income information is on file at the CRA to maximize grant payments. The grant matching rate at 300% or 200% can only be determined once the family income is verified.
9.2.2.1 Beneficiary at the age of majority
Beginning the calendar year, the beneficiary turns 19 until the end of the calendar year the beneficiary turns 49, the beneficiary's family income includes their and their spouse's income. This remains true regardless of whether the adult beneficiary is a dependant of a parent/guardian.
To ensure the beneficiary's eligibility for the highest grant amount verification, they must file personal income tax returns starting from the year they turn 17. Beneficiaries must continue to file for all future taxation years, even if they have no income to report. The parent's or guardian's family income will be used when the beneficiary is 18 years of age or under. This applies until December 31 of the year in which they turn 18.
9.2.2.2 Beneficiary under the age of majority
A beneficiary's family income is determined from birth until December 31 of the year they turn 18. This calculation is based on the income information used to determine the CCB for the beneficiary. To determine the amount of the grant to be paid in that year, income information from the PCG is used.
Normally, the PCG is the person who receives the CCB closest to January. For more information, refer to Chapter 3 section 3.6. Primary caregiver. The month of January is usually used to set the grant matching rate for all contributions made in a given calendar year.
The CDSA provides that if there was no determination of eligibility for a Child Benefit for January, the income used is the one from the first month of the calendar year when eligibility for the CCB is established.
A child born in December would not receive the CCB until January 1 of the next calendar year. To allow families to qualify for grant payments based on contributions made in the birth year, the CDSA uses the family income determined by the CCB. This income is assessed in January of the following year. This income is then applied retroactively to the birth year.
| RDSP is open | Who can be the holder | Family income (which is based on the income from the second preceding tax year) |
|---|---|---|
| Any year before the beneficiary turns 18 |
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| In the year the beneficiary turns 18 (before their birthday) |
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| In the year the beneficiary turns 18 (on or after their birthday) |
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| Any year after the beneficiary turns 18 |
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9.2.2.3 Grant income thresholds
The CRA indexes the income thresholds annually. The income thresholds are used to establish the grant matching rates for the current and previous years. For current income levels, refer to the CRA's tax bracket thresholds table. The table provides information about tax bracket thresholds for the last 4 tax years. You can also visit our information bulletins page to find important information about RDSPs changes, including annual adjustments to income thresholds.
9.2.3 Grant payments and income thresholds
9.2.3.1 Family income is under the threshold
Example 1
The total eligible contribution amount deposited into an RDSP is $4,000. If the beneficiary's family income is $45,000, the grant deposited into the account is $3,500 (assuming there is no carry forward).
The grant amount is calculated as follows given the income is below the threshold amount.
- The first $500 in contributions at a matching rate of 300% will attract $1,500
- The next $1,000 in contributions at a matching rate of 200% will attract $2,000
- The next $2,500 in contributions will not attract any grant given the annual limit of $3,500 has already been reached
9.2.3.2 Family income is over the threshold
Example 2
In 2024, the beneficiary's family income is over $111,733. An eligible contribution of $5,000 is deposited into the RDSP. The grant deposited into the RDSP is $1,000 (assuming there is no carry forward).
The grant amount is calculated as follows given the income is over the threshold amount.
- The first $1,000 in contributions at a matching rate of 100% would attract $1,000
- The next $4,000 in contributions would not attract any grant as the annual limit of $1,000 has already been reached
9.2.3.3 No income information is available at the CRA
Example 3
Paul opens an RDSP and deposits $5,000, a gift from one of his grandparents. Paul is not only the holder, but also the beneficiary of the account. Paul has just turned 18 years of age prior to opening the plan. Paul has not filed any personal income tax returns for the last years as he had no income to report. When no income information is available (no tax return filed) and a $5,000 contribution is made to the RDSP, the grant deposited is $1,000 (assuming there is no carry forward).
The grant amount is calculated as follows given that no income information is available at the CRA:
- the first $1,000 in contributions at a matching rate of 100% would attract $1,000
- the next $4,000 in contributions would not attract any grant as the annual limit of $1,000 has already been reached
9.2.4 Shared custody
Since July 2011, divorced or separated parents who share the custody of a child or children can receive and share CCB and credits for those children throughout the year.
As a result, there could be 2 different income levels used for a beneficiary under the age of 18 (one for each PCG) during the calendar year. The Canada Disability Savings Program (CDSP) system will use the income level that is the most advantageous for the beneficiary to determine the grant entitlements.
9.2.4.1 Two key players
In the context of shared custody, there are 2 key players:
- the PCG
- the qualified dependant
9.2.4.1.1 PCG
In respect of a qualified dependant, a PCG resides with the qualified dependant in the year in question. The PCG must also be a parent of the qualified dependant who:
- is the parent who primarily fulfils the responsibility for the care and upbringing of the qualified dependant and is not a shared custody parent in respect of the qualified dependant
- is a shared custody parent in respect of the qualified dependant
Note: A shared custody parent is an individual who is 1 of the 2 parents of the qualified dependant who:
- is not a cohabiting spouse or common-law partner of the other
- resides with the qualified dependant on an equal or near equal basis
- primarily fulfils the responsibility for the care and upbringing of the qualified dependant when residing with the qualified dependant
9.2.4.1.2 Qualified dependant
A qualified dependant is a person who:
- has not attained the age of majority
- is the child of a PCG or is under their care or the care of their spouse
- resides with the PCG
9.2.5 Beneficiary's residence
A beneficiary who moves out of Canada may not be considered a Canadian resident for the time they are out of the country. In this case, the holder will not be eligible to make contributions in the years the beneficiary did not meet residency requirements.
The CRA is responsible for determining residency status for a particular year. Information on the PCG is used to determine the residency of a beneficiary under the age of 18.
It is the holder's responsibility to inform the financial institution of any changes in the beneficiary's residency status.
Note: A holder, who is not the beneficiary, does not have to be a resident of Canada. The beneficiary does not have to be a resident of Canada at the time of the grant payment, only when opening the RDSP or when a contribution is made.
If the beneficiary's parents are with a diplomatic mission or in the Canadian Forces, the family members are still considered to be Canadian residents. The children are, therefore, eligible for the grant.
9.2.6 The CCB
For a beneficiary who has not yet reached the age of majority (including those turning 18 in a calendar year), ESDC validates the beneficiary's information against the Canada Revenue Agency's CCB database. This validation includes confirming that the PCG applied for the CCB when filing their last tax return.
The CCB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18. The CCB may include the Child Disability Benefit (CDB), a monthly benefit for families who care for a child who is approved for the DTC.
9.2.7 Beneficiary under care
If a beneficiary under the age of majority (including those turning 18 in a calendar year) is under the care of a department, agency, or institution eligible for payments under the Children's Special Allowances Act (CSAA) for at least 1 month in the calendar year, they will receive the highest matching grant rate. This means a 300% match on the first $500 contributed and a 200% match on the next $1,000.
A payment made under the CSAA is tax-free monthly payment, made to an organization for a child who is under the age of 18 and under their care. These payments may include the CDB, a monthly benefit for organizations who care for a child who is approved for the DTC.
9.2.8 Consent from the PCGs
Beneficiaries who are over the age of 18 when they open an RDSP will need to obtain the consent from the PCGs to obtain the data used to determine DTC-eligibility, Canadian residency, and family income for when they were 18 years of age and under.
For example, a 21-year-old beneficiary who opens an RDSP may be able to access unused grant entitlements from previous years. To do so, they must obtain the consent from the PCG for each of those years, allowing verification of:
- DTC-eligibility
- canadian residency
- family income for the past 10 years
For ESDC to pay grants, PCG's must consent to the sharing of their personal information between:
- ESDC
- CRA
- the financial institution for the administration (which may include policy analysis, research, and evaluation) of the:
- CDSA
- Canada Disability Savings Regulations
- Income Tax Act
If there are different PCGs (or organizations), ESDC will use the PCG's information that is most beneficial for the beneficiary.
9.3 Grant room and carry forward
Holders may not be able to contribute regularly to their RDSPs. Therefore, the carry forward provision lets individuals access unused grant entitlements from the past 10 years, starting from 2014.
The carry forward is applied to all RDSPs regardless of when the plan is initially opened and registered.
The entitlements do not accrue during any period a beneficiary is not eligible for the DTC or not a resident of Canada.
The maximum annual amount of unused grant entitlement that can be carried forward and paid out in a calendar year is $10,500. This amount includes any grant entitlement for the current year.
Since January 1, 2011, ESDC determined and maintained balances of available unused grant entitlements. The matching rate for these unused grant entitlements remains the same as it would have been if the contribution had been made in the calendar year when the entitlement was originally earned.
Matching rates on RDSP contribution will be applied in descending order. Contributions will first use any grant entitlement at the highest available matching rate, starting from the oldest to the newest before applying grant entitlements as lower rates.
No separate application is required to access unused grant. Grant entitlements are calculated automatically. To help plan contribution amounts, annual statements of available grant entitlements are sent to holders to show how much unused grant entitlement is available.
9.3.1 Accessing grant entitlements
The carry forward provision of grant entitlements came into effect on January 1, 2011, with payments beginning in 2012. Grants are generally paid at the end of the month following the month in which an eligible contribution is made.
The beneficiary cannot access unused grant entitlements after December 31 of the year they turn 49 given an eligible contribution must be made to access this unused grant entitlement. No eligible contribution can be made after December 31 of the year as the beneficiary turns 49.
9.3.1.1 Beneficiary eligibility criteria
To receive a grant for unused entitlements, the beneficiary must meet the following eligibility criteria:
- be a Canadian resident at the time the eligible contribution is made and for each year of entitlement
- has a valid SIN
- is eligible for the DTC in each year of entitlement
- the contribution is made on or before December 31 of the year the beneficiary turns 49
- does not have more than $200,000 in contributions in the plan
- is alive at the time of the contribution
9.3.1.2 Statement of entitlement
Every year, RDSP holders will receive a statement showing the amount of unused grant entitlements available. It also shows the amount of contributions required to maximize grants that could be paid each calendar year.
| Total grant available |
Maximum grant available in 2024 |
Contribution required to maximize grant in 2024 |
|---|---|---|
| n/a | n/a | n/a |
The statement briefly describes the eligibility criteria to receive grant and bond as well as the rules governing the carry forward of grant and bond entitlements.
9.3.2 Grant and carry forward calculations
The maximum lifetime grant limit is $70,000 per beneficiary.
Once a beneficiary has received the maximum lifetime grant limit, contributions will no longer be eligible to receive grant. By qualifying for and receiving the 300% and 200% grant matching rates, a beneficiary will reach the lifetime grant limit of $70,000 sooner with fewer and smaller contributions.
The maximum annual amount of grant entitlement that can be carried forward and paid into an RDSP is $10,500. This amount includes any grant entitlement for the current year.
9.3.2.1 Grant calculations without carry forward
Example 1
Mary has a beneficiary's family income of $37,000 in 2023. Mary made 2 eligible contributions to an RDSP in 2023.
Mary contributed $500 to an RDSP in March 2023.
Mary contributed an additional $400 in August 2023, for a total amount of $900 in contributions.
Since Mary's beneficiary's family income is under the threshold of $106,717 for 2023:
- the first $500 in contributions at a matching rate of 300% will attract $1,500
- the second $400 in contributions at a matching rate of 200% will attract $800
Therefore, $900 in contributions will attract $2,300 in grants for 2023.
Mary will have $1,200 of unused grant entitlement available after January 1, 2024.
Example 2
A contribution of $2,500 is made into an RDSP in 2023. The family income reported was $84,000 in 2023. The 2023 income level threshold was $106,717 (no unused grant entitlement is carried forward).
Given the family income is above the threshold for 2023, the 100% matching rate applies:
- first $1000 in contributions at a matching rate of 100% will attract $1,000
- the next $1,500 in contributions will not attract grant
Therefore, $2,500 in contributions will attract $1,000 in grants, the same amount as if a $1,000 had contributed to the RDSP.
Example 3
A contribution of $5,000 is made into an RDSP in 2023. The family income level reported is $60,000 in 2023. The 2023 income level threshold is $111,733 (no unused grant entitlement is carried forward).
Given the family income is below the $111,733 threshold for 2023:
- first $500 in contributions at a matching rate of 300% will attract $1,500
- the next $1,000 in contributions at matching rate of 200% will attract $2,000, and
- the next $3,500 in contributions will not attract grant
Therefore, for the contribution of $5,000, the grant payment would be $3,500, the same amount as if $1,500 had contributed to the RDSP.
9.3.2.2 Grant calculations with carry forward
Example 1
Caroline was born in 1983. Contractually competent, Caroline opened a plan in 2020 at the age of 37. Caroline's family income was below the grant income thresholds from 2018 to 2021.
Caroline is entitled to a matching rate of 300% on the first $500 contributed and 200% on the next $1,000 for each of these years.
The table 4 shows how much Caroline needs to contribute in order to maximize the amount of grant entitled to receive in 2021.
| Year | Contributions | 300% matching rate | 200% matching rate | 100% matching rate | Grant paid based on contributions |
|---|---|---|---|---|---|
| 2018 | $0 | $0 | $0 | $0 | $0 |
| 2019 | $0 | $0 | $0 | $0 | $0 |
| 2020 (opened an RDSP) | $0 | $0 | $0 | $0 | $0 |
| 2021 (carry forward begins in 2021 and applies back to 2018) | $4,250 | $6,000 ($2,000 at 300%) | $4,500 ($2,250 at 200%) | $0 | $10,500 |
Given that the highest and oldest rates must be applied first, and that there is $6,000 at the 300% rate ($1,500 per year from 2018 to 2020 + $1,500 in 2011) available in unused grant entitlement in 2021:
- the first $2,000 in contributions will be used to attract all the grants available at the 300% rate for the years 2018 to 2021 inclusively, resulting in $6,000 in grants
- since all grants at the 300% rate have been used up, the matching rate will now be 200%
The remaining $2,250 in contributions ($4,250 - $2,000) will be used to attract grants at the 200% rate, resulting in $4,500 in grants.
Therefore, with a contribution of $4,250, the maximum yearly grant amount of $10,500 would be paid out. This will use up all grant entitlements for 2018 and 2019 at 200% ($4,000), as well as a portion of the grant available at 200% for 2020 ($500 out of the $2,000 available). As a result, there will be an outstanding balance of $3,500 in grant entitlements at the 200% rate available for the future.
Caroline will need to make additional contributions to maximize the amount of grant entitled to receive for the following year.
| Year | Contributions | Grants at 300% | Carry forward at 300% | Grants at 200% | Carry forward at 200% | Grant paid |
|---|---|---|---|---|---|---|
| 2022 | $3,250 ($500 at 300%) ($2,750 at 200%) |
$1,500 | $0 | $2,000 | $3,500 | $7,000 |
In 2022, Caroline would need to contribute $3,250 to access the remaining available grant of $7,000 ($3,500 for 2022 based on income being below the threshold and $3,500 in carry forward from previous years at the 200% rate).
| Item | Details |
|---|---|
| DTC approval year | 2016 |
| RDSP opened | 2024 |
| Years under income threshold | 8 years (2016 to 2024) |
| Total unused grants | $28,000 (8 years x $3,500/year) |
| 300% grant entitlement | $12,000 (8 years x $500 contribution/year = $4,000 × 300% = $12,000) |
| Contribution for full grant | $3,500 (to receive $10,500 in grants using 300% matching) |
| Assumed contribution | $4,500 (based on dividing $10,500 by $3,500, then multiplying by 3 years' worth of matching) |
| Actual grant received | $10,500 (for a contribution of $3,500) |
| Additional contribution | $1,000 (would not attract any grant) |
The holder opened an RDSP in 2024. The beneficiary’s family income was under the income threshold for the 8 previous years. Thus, making them eligible for a total of $28,000 in unused grants ($3,500 per year).
To maximize grants, a contribution of $3,500 in a single year, would result in receiving $10,500. The additional contribution of $1,000 would not attract grant.
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