Revised Income Brackets for Additional CESG

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

Information Bulletin

Number:
CESP/PCEE-2014/15-002-608
Date:
December 19, 2014
Subject:
Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG)

Previous bulletin

This Information Bulletin updates the Information Bulletin CESP/PCEE-2013/14-003-561 dated December 6, 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 2015.

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 2015 indexation adjustment for personal income tax, benefit amounts, and the annual dollar limit for Tax-Free Savings Accounts (TFSAs). Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2015.

The following table identifies 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…

2015 $44,701 or less $44,701 but not more than $89,401
2014 $43,953 or less $43,953 but not more than $87,907

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 RESP and CESP Promoters page for the most recent version of the tools.

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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