Notice #651 - Revised Income Brackets for Additional CESG for 2016

Official title: Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG) for 2016

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.

Information bulletin

Number:

CESP/PCEE-2015/16-003-651

Date:

December 14, 2015

Subject:

Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG) for 2016

Previous bulletin

This Information Bulletin updates the Information Bulletin CESP/PCEE-2014/15-002-608 dated December 19, 2014.

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 2016.

Background

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 2016 Indexation adjustment for personal income tax and benefit amounts. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2016.

Income brackets to determine Additional CESG

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…
2016 $45,282 or less $45,282 but not more than $90,563
2015 $44,701 or less $44,701 but not more than $89,401

No change to Basic CESG

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

Updated RESP promoter resources

Due to the above changes, RESP promoter resources will be updated to reflect these changes in the near future.

Contact us

Should you have any questions regarding this Information Bulletin, please contact us by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or call at 1-888-276-3624. Our hours of operation are from 8 am to 5 pm Eastern Standard Time.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: