Notice #847 – Revised income brackets for the Additional amount of Canada Education Savings Grant (Additional CESG) for 2020
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- Information bulletin
- Previous bulletin
- Purpose
- Background
- Income brackets to determine the Additional CESG
- No change to the Basic CESG
- Updates to the RESP promoter resources
- Contact us
Information bulletin
Number: CESP/PCEE-2019/20-010-847
Date: December 11, 2019
Subject: Revised income brackets for the Additional CESG for 2020
Previous bulletin
This information bulletin updates the Information Bulletin CESP/PCEE-2018/19-005-798 dated December 11, 2018.
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 2020.
Background
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 thresholds in order to calculate the Additional CESG. These amounts are indexed yearly based on inflation.
The Canada Revenue Agency has released the 2020 Indexation adjustment for personal income tax and benefit amounts. Due to this indexation adjustment, income brackets for the Additional CESG eligibility have been established for 2020.
Income brackets to determine the 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 the Registered Education Savings Plan (RESP) contributions per beneficiary, per year.
| Year | First threshold (adjusted income bracket) Rate of payment = 20% Additional CESG |
Second threshold (adjusted income bracket) Rate of payment = 10% Additional CESG |
|---|---|---|
| 2020 | $0 to $48,535 | greater than $48,535 but not more than $97,069 |
| 2019 | $0 to $47,630 | greater than $47,630 but not more than $95,259 |
| 2018 | $0 to $46,605 | greater than $46,605 but not more than $93,208 |
| 2017 | $0 to $45,916 | greater than $45,916 but not more than $91,831 |
No change to the Basic CESG
Calculations for the Basic CESG remain unchanged at 20% of the RESP contributions per beneficiary, per year.
Updates to the RESP promoter resources
Due to the above changes, the RESP promoter resources will be updated on Canada.ca/RESPresources to reflect these changes in the near future.
Contact us
If you have any questions regarding this information bulletin, please contact us by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or by telephone at 1-888-276-3624. Our hours of operation are from 8 am to 5 pm Eastern Time.
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