The Canada Education Savings Grant pays 20% on the first $2,500 you contribute each year, per child, to a lifetime maximum of $7,200. It is the highest guaranteed return available in the Canadian tax system.
The number to remember: $208
Contributing $208.33 a month hits $2,500 a year and captures the full $500 grant. Fifteen years of that reaches the $7,200 lifetime maximum. Contribute more in a year and the excess earns no grant — the annual cap is firm.
Catching up
Unused grant room carries forward, but only one year can be caught up at a time. The practical maximum is $5,000 of contributions in a year, attracting $1,000 of grant. If you start late, plan on several years of double contributions rather than one large deposit.
| Child’s age at start | Years to age 17 | Grant reachable |
|---|---|---|
| Birth | 18 | $7,200 |
| Age 5 | 13 | $7,200 |
| Age 10 | 8 | $7,200 if $5,000/yr |
| Age 14 | 4 | $4,000 |
The extra grant for lower incomes
Families below the income thresholds receive an additional CESG of 10% or 20% on the first $500 contributed, and the Canada Learning Bond adds up to $2,000 with no contribution required at all. If your family income qualifies, opening the account is worth doing even if you cannot contribute a dollar.
How it comes out
- Your own contributions come back to you tax-free — they were never deducted.
- Grants and growth are paid to the student as Educational Assistance Payments, taxed in the student’s hands, usually at close to zero.
- If no child attends a qualifying programme, grants are returned to the government and growth can be rolled into an RRSP with room available.
Written against published 2026 federal and provincial figures. General information, not financial, tax, or legal advice — see the methodology and disclaimer.