When you contribute to an RESP, the government matches your contributions by 20% – up to $7,200 over the lifetime of your plan – through the Canada Education Savings Grant (CESG). Eligible beneficiaries can also receive additional support through the Canada Learning Bond (CLB) and other grants. Your savings grow tax-free in an RESP. This means that as long as the money is in the RESP, you won’t have to pay any taxes. When withdrawing your grants, contribution income and grant income, otherwise known as an educational assistance payment (EAP), the funds are taxed in the hands of the student, meaning they typically pay very little-to-no taxes on them, due to their low-income tax bracket.