The Canada Disability Savings Grant (CDSG) is a federal government matching program deposited directly into your Registered Disability Savings Plan (RDSP). The CDSG provides between 100% and 300% matching on contributions, up to $3,500 per year for lower-income Canadians. Over a lifetime, the CDSG alone can contribute up to $70,000 to your RDSP — completely free money from the government.
| Family Net Income | On First $500 | On Next $1,000 | Max Annual Grant | Optimal Contribution |
|---|---|---|---|---|
| ≤ $36,502 | 300% → $1,500 | 200% → $2,000 | $3,500 | $1,500 |
| $36,503–$106,717 | 100% → $500 | 100% → $1,000 | $1,500 | $1,500 |
| > $106,717 | 100% → $500 | — | $500 | $500 |
The income used to calculate the CDSG depends on the beneficiary's age and situation:
This is critical — when a child with a disability turns 19, their own income (often very low or zero) is used, meaning most adults with disabilities qualify for the maximum $3,500/year CDSG regardless of their parents' income.
If you opened your RDSP late or recently received DTC approval, the government allows retroactive CDSG contributions going back to age 18 (or DTC eligibility, whichever is later), up to 10 years. You can "catch up" multiple years of unused grant room by making larger contributions in a single year — up to $10,500/year in grants (3 years at $3,500). This is an exceptionally powerful strategy for newly diagnosed adults.
The government will not pay CDSG after December 31 of the year the beneficiary turns 49. Plan your contributions to maximize the window of government matching before this cutoff.
The 10-year rule applies: if any RDSP withdrawal is made in the first 10 years after receiving CDSG, you must repay $3 for every $1 withdrawn (up to the total grants received in the last 10 years). This is called the "assistance holdback amount." After the RDSP has existed for 10 years without receiving government grants, or after the beneficiary turns 60, withdrawals are clawback-free.
Exception: Shortened Life Expectancy (SLE) plans have no clawback rules if a medical practitioner certifies the beneficiary is not expected to survive more than 5 years.
| Feature | CDSG/RDSP | RRSP | TFSA |
|---|---|---|---|
| Government matching | Up to 300% | None | None |
| Tax on growth | Deferred | Deferred | Tax-free |
| Contribution deductible | No | Yes | No |
| Withdrawal taxable | Partially (gov portion) | Fully | Never |
| Eligibility | DTC required | Income required | Age 18+ |
To receive the CDSG you must: (1) Open an RDSP at a participating financial institution, (2) Have an active DTC certificate on file with CRA, (3) File income taxes each year (for grant calculations), and (4) Make an eligible contribution in that calendar year. Major banks (RBC, TD, BMO, Scotiabank, CIBC) and credit unions offer RDSPs. Compare investment options — some institutions offer broader investment choices than others.
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Get KOHO Free — Code 45ET55JSYAInformational only. Income thresholds indexed annually. Verify with ESDC or a financial advisor. Last updated March 2026.