Updated: April 2025  |  bremo.io financial guides

Canada Education Savings Grant (CESG) 2025

The CESG is the federal government's matching grant for RESP contributions — 20% on the first $2,500 you contribute each year, up to $500 annually and $7,200 over a lifetime. It is the most compelling reason to use an RESP over any other savings vehicle for education.

How the CESG Works

Every year you contribute to an RESP, the government automatically deposits a matching grant equal to 20% of your first $2,500. Your RESP provider files for CESG on your behalf — no separate application needed. The grant typically appears in the account within a few weeks of your contribution.

Additional CESG for Lower Incomes

Lower-income families qualify for enhanced grants on the first $500 contributed each year:

• Family net income at or below $55,867 (2024): additional 20% = extra $100/year
• Family income $55,867 to $111,733: additional 10% = extra $50/year

Combined with the basic CESG, low-income families can receive $600/year and middle-income families $550/year. Thresholds are indexed annually.

Catching Up Missed Grant Years

Each year of unused $2,500 grant room carries forward. To catch up, you can contribute up to $5,000 in a single year — earning CESG on both current-year room and one prior year's room — for a maximum of $1,000 CESG that year. Systematic catch-up over several years exhausts unused room.

When CESG Stops

CESG is earned until December 31 of the year the beneficiary turns 17. Age 16-17 restrictions apply: at least $2,000 must have been contributed before age 16, or contributions made in at least four years before age 16. Don't wait too long to start an RESP — meeting the age-17 eligibility conditions requires years of prior activity.

CESG Repayment on Plan Closure

If the RESP is closed without educational use, all CESG grants must be returned to the government. Grants can be transferred to another eligible beneficiary (sibling under 21) to avoid repayment. If the beneficiary changes programs or drops out after 13 weeks, grants generally remain in the account for future use.

Investment Growth on CESG

The $7,200 lifetime CESG growing at 6% annually for 18 years becomes approximately $20,500. The 20% instant return from CESG, compounded over 18 years, dramatically outperforms any other guaranteed investment. Starting early and reinvesting grants makes the government's contribution enormously powerful.