Canada Education Savings Grant

Disclaimer: RESP promoters

The information contained on this page is technical in nature and is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.

Official title: Revised Income Brackets for Additional Canada Education Savings Grant (CESG).

Information Bulletin

Number:
PCEE/CESP-2010/11-005-419
Date:
January 25, 2011
Subject:
Revised Income Brackets for Additional Canada Education Savings Grant (CESG).

Previous Bulletin

This Information Bulletin supersedes the Information Bulletin CESP/PCEE-2010/11-001-395 dated July 6, 2010 and is reference to PCEE/CESP-2010/11-003-399 dated July 23, 2010.

Purpose

The purpose of this Information Bulletin is to inform Promoters and Trustees that the income brackets used to determine the rate of payment for the Additional CESG have been indexed for 2011.

Income brackets to determine Additional CESG

The Additional CESG is subject to subsection 5(4)(a) of the Canada Education Savings Act which uses the adjusted income for an eligible individual to establish the first and second threshold in order to calculate the Additional CESG. These amounts are indexed yearly based on inflation.

The Canada Revenue Agency has released the Indexation Adjustment for Personal Income Taxes for 2011. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2011.

The following table indicates income brackets used to determine the rate of the Additional CESG on the first $500 or less of Registered Education Savings Plan (RESP) contributions per beneficiary, per year.

Year First threshold Additional CESG rate is 20% when net family income is… Second threshold Additional CESG rate is 10% when net family income is more than… (second threshold)
2011 $41,544 or less $41,544 but not more than $83,088
2010 $40,970 or less $40,970 but not more than $81,941

No Change to Basic CESG

Calculations for Basic CESG remain unchanged at 20% of RESP contributions per beneficiary per year.

Promoter Tools

Due to the above changes, the RESP Provider User Guide, the InfoCapsules and the CESG-CLB Quick Facts will be updated and available for download on the Promoter Tools page.

Contact Us

Questions on this Information Bulletin should be directed to the Canada Education Savings Program by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or by calling 1-888-276-3624.

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