RESP - Registered Education Savings Plan
Updated: Jun 12, 2026 · 2026The RESP helps families save for a child's post-secondary education with tax-deferred growth and government grants like the Canada Education Savings Grant (CESG).
2026 contribution limits
Contribution caps
- Lifetime contribution limit: $50,000 per beneficiary
- No annual contribution limit
- CESG matches 20% on the first $2,500 of yearly contributions
- Maximum CESG per year: $500 (or up to $1,000 with carry-forward year)
- Lifetime CESG cap per child: $7,200
2026 Additional CESG income brackets
- Family income up to $58,523: full Additional CESG
- Family income over $58,523 up to $117,045: partial Additional CESG
- Above $117,045: only basic CESG applies
- Plan can stay open up to 35 years after opening
Tax implications
Contributions
- Not tax deductible
- Original contribution portion can usually be withdrawn tax free
- Over-contributions over $50,000 lifetime: 1% per month penalty
Growth and withdrawals
- Investment growth is tax deferred inside RESP
- Educational Assistance Payments (grants + growth) are taxed in student's hands
- Students often pay little or no tax due to lower income
- Unused grants must be returned to the government if RESP is collapsed
Broker support
- Wealthsimple: commonly supported
- Questrade: commonly supported
- Interactive Brokers Canada: support can be limited
- Moomoo Canada: support can be limited
Sources verified for 2026: Canada.ca CESG pages and ESDC Notice #1114 confirming the 2026 Additional CESG income thresholds of $58,523 and $117,045.