RESP Contribution Limit 2026: Education Savings Guide
Everything you need to know about saving for your child's education - and getting free government money.
2026 RESP Key Numbers
$50,000
Lifetime Limit
$2,500
For Max CESG
$500
Max CESG/Year
RESPs are one of the best deals in Canadian personal finance. Contribute money, get a 20% match from the government, and watch it grow tax-free. Here's how to maximize it.
RESP Contribution Limits 2026
- Lifetime Limit: $50,000 per beneficiary (child)
- Annual Limit: No limit, but only $2,500/year qualifies for CESG
- CESG Grant: 20% match up to $500/year ($7,200 lifetime)
- Time Limit: Account must be open for 10+ years, child under 31 at withdrawal
The CESG: Free Government Money
The Canada Education Savings Grant (CESG) matches 20% of your contributions up to $500 per year. That's an instant 20% return on your money.
CESG Calculation:
- Contribute $2,500 → Get $500 CESG (20%)
- Contribute $5,000 → Get $500 CESG (capped)
- Lifetime CESG limit: $7,200 per child
There's also carryforward room. If you missed years, you can get up to $1,000 CESG per year by contributing $5,000.
The Optimal RESP Strategy
- Open an RESP as soon as possible - more time for growth
- Contribute $2,500/year minimum - gets full CESG
- Catch up if you can - $5,000/year captures carryforward CESG
- Invest appropriately - long timeline = equities, short = bonds/GICs
RESP Withdrawal Rules
When your child starts post-secondary education:
- Contributions: Withdrawn tax-free (you already paid tax)
- Grants + Growth: Taxed in the student's hands (usually low/no tax)
- Qualifying programs: University, college, trade school, apprenticeships
What If They Don't Go to School?
RESPs have safety nets:
- Wait: Child has until age 35 to use it
- Transfer: Move to another child's RESP (sibling)
- Roll to RRSP: Transfer up to $50,000 of growth to your RRSP (if you have room)
- Withdraw: Get contributions back (grants return to government, growth taxed + 20% penalty)
RESP vs Informal Trust vs TFSA for Kids
RESP wins for education savings due to the CESG. But if you want more flexibility:
| Account | Grant | Flexibility | Best For |
|---|---|---|---|
| RESP | 20% CESG | Education only | Post-secondary |
| Informal Trust | None | Any purpose | General savings |
| Your TFSA | None | Full | Flexibility |
The Bottom Line
RESPs offer a guaranteed 20% return via CESG - you won't find that anywhere else. If you have kids and want to help with education costs, open an RESP and contribute at least $2,500/year to maximize the grant.
Related Guides:
Budget for Education Savings
Waypoint Budget helps you build RESP contributions into your monthly budget.