InfoCapsule 11: The Canada Education Savings Grant
Disclaimer: RESP promoters
The information contained on this page is technical in nature. The target audience are the promoters of the:
- Registered Education Savings Plan (RESP)
- Canada Education Savings Program (CESP)
For general information, visit the RESP section.
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A PDF version of the InfoCapsules for RESP providers is available on the index page.
List of acronyms
CESG
Canada Education Savings Grant
ESDC
Employment and Social Development Canada
PCG
Primary caregiver
RESP
Registered Education Savings Plan
SIN
Social Insurance Number
Preface
Administered by Employment and Social Development Canada (ESDC), the CESG consists of:
- a basic amount (Basic CESG, introduced in 1998), and
- an additional amount of CESG (Additional CESG, introduced in 2005)
The CESG is paid on contributions made to a Registered Education Savings Plan (RESP) in respect of an eligible beneficiary.
Eligibility criteria
- The beneficiary has to be a resident in Canada at the time of the contribution and the withdrawal
- A valid Social Insurance Number (SIN) is required for the subscriber and the beneficiary
- In the case of the Additional CESG, a valid SIN is also required for the individual primary caregiver (PCG), their cohabiting spouse or common-law partner, if applicable
- A business number (BN) is required for a public PCG (department, institution or agency)
- Information on the individual PCG, their cohabiting spouse or common-law partner, or the public PCG, must be collected to request the Additional CESG
- Contributions must be made on or before December 31 of the calendar year in which the beneficiary turns 17
- For contributions made during the calendar year that a beneficiary turned 16 or 17 years old, to be eligible for the CESG, 1 of the following conditions must apply:
- a minimum of $100 in annual RESP contributions, in respect of the beneficiary. Contributions must have been made in any 4 years (consecutive or not and not withdrawn), or
- a minimum of $2,000 in RESP contributions, in respect of the beneficiary, must have been made (and not withdrawn)
Note: Subscribers have to meet either of those conditions before the end of the calendar year the beneficiary turned 15.
CESG rates payable to an RESP in respect of a beneficiary
Basic CESG
The Basic CESG is payable at a rate of 20% of the first $2,500 or less of annual contributions.
If a beneficiary has accumulated grant room, the subscriber could catch up on these unused Basic CESG amounts by contributing more than $2,500 annually.
Note: The amount of annual Basic CESG payable per beneficiary is limited to the lesser of the following amounts:
- accumulated grant room available for the beneficiary, or
- the Basic CESG annual limit
Since 2007:
- the annual amount of Basic CESG is $500
- the annual limit of Basic CESG is $1,000 with carry forward
- the amount of contributions required to receive the annual limit of Basic CESG is $2,500 or $5,000 with carry forward
Additional CESG
The Additional CESG is payable at a rate of 10% or 20% of the first $500 or less of annual contributions.
The Additional CESG cannot be carried forward and is based on the PCG’s adjusted income level.
| CESG rates | PCG's adjusted income level |
|---|---|
| 20% additional | $53,3591 or less or Public PCG |
| 10% additional | Greater than $53,3591 and up to $106,7171 |
- 12023 Income levels; indexed annually.
Note:
The lifetime limit per beneficiary for the CESG (Basic and Additional combined) is $7,200.
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