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 (Additional CESG)

Information Bulletin

Number:
CESP/PCEE-2013/14-003-561
Date:
December 6, 2013
Subject:
Notice #561 - Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG)

Previous Bulletin

This Information Bulletin updates the Information Bulletin PCEE/CESP-2012/13-007-514 dated January 2, 2013.

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 2014.

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 family net 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 2014. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2014.

The following table indentifies the 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…
2014 $43,953 or less $43,953 but not more than $87,907
2013 $43,561 or less $43,561 but not more than $87,123

No Change to Basic CESG

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

Updated RESP promoter tools

Due to the above changes, the RESP promoter tools will be updated to reflect these changes in the near future. Please consult the link below for the most recent version of the tools:

Promoter tools

Contact Us

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

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