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.
December 14, 2015
Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG) for 2016
This Information Bulletin updates the Information Bulletin CESP/PCEE-2014/15-002-608 dated December 19, 2014.
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.
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.
Additional CESG rate is 20% when the adjusted family net income is…
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.
Should you have any questions regarding this Information Bulletin, please contact us by e-mail at email@example.com 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
- Date modified: