Registered Education Savings Plan (RESP): A Practical Guide for Parents

What is an RESP?

A Registered Education Savings Plan (RESP) helps Canadian families save for a child's post-secondary education. The account can hold investments that grow on a tax-deferred basis, and it can also receive federal grants and bonds that add to what you save.

• A subscriber opens and controls the plan for the beneficiary
• Federal grants and bonds can add to what the family saves
• Funds can help cover tuition, books, and other qualifying education expenses

Contribution Details

Government support programs

Canada Education Savings Grant (CESG)

• Basic CESG adds 20% on the first $2,500 contributed each year, up to $500 annually
• Lifetime CESG maximum is $7,200 per child
• Additional CESG is available for lower-income families; for 2026 the income thresholds for the higher top-up tiers are $58,523 and $117,045
• Unused grant room can be caught up in later years subject to program limits

Canada Learning Bond (CLB)

• Provides up to $2,000 over time for eligible low-income children
• No personal contributions are required to receive the CLB
• Apply through an RESP provider for an eligible child

Provincial grant programs

Additional provincial incentives

• Some provinces offer their own RESP incentives with varying rules
• Availability depends on the province you live in and the RESP provider you use
• Check with your RESP provider or provincial program office for eligibility

RESP withdrawal rules

Educational Assistance Payments (EAPs)

• EAPs consist of the grant portion and investment earnings; they are taxable to the student when received
• Students must be enrolled in an eligible post-secondary program to receive EAPs
• Plan rules include different criteria for full-time and part-time study

If a beneficiary does not attend post-secondary studies

• You can keep the RESP open for a time to allow for later study
• Transfer the plan to another eligible beneficiary, when possible
• In certain situations, accumulated income may be transferred to an RRSP if the subscriber has contribution room; check conditions with your provider and tax adviser
• Withdrawals that include government grants may need to be returned to the Crown or repaid under program rules

RESP planning tips

• Contribute $2,500 a year to fully use the basic CESG where possible
• Carry-forward unused grant entitlement when you have means to catch up
• Consider provincial incentives and combine them with federal grants
• Coordinate withdrawals so the student receives the income and pays the tax at their lower rate
• Talk with a local adviser to match your plan to your child's likely study timeline and your household cash flow