Revised CESG Income Brackets

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-2011/12-006-466
Date:
December 23, 2011
Subject:
Revised Income Brackets for Additional Canada Education Savings Grant (CESG).

Previous Bulletin

This Information Bulletin updates the Information Bulletin CESP/PCEE-2010/11-005-419 dated January 25, 2011.

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 2012.

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 2012. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2012.

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 the adjusted family net income is…
Second Threshold

Additional CESG rate is 10% when the adjusted family net income is more than… (second threshold)
2012 $42,707 or less $42,707 but not more than $85,414
2011 $41,544 or less $41,544 but not more than $83,088

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 using the link below:

Promoters 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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