The two streams
Your original contributions can be withdrawn tax-free, because the money was already taxed before you put it in. The grants and investment growth are paid as an Educational Assistance Payment (EAP), which is taxable to the student. Students usually have little other income, so the tax is often low or nil.
Proof of enrolment
The institution and program must qualify, and proof of enrolment is required before an EAP can be paid.
Limits and timing
A limit applies to how much of the grant-and-growth portion can be taken early in a program. Spreading withdrawals across calendar years can help keep the student's tax low.
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Book my free review →Frequently asked questions
Are RESP withdrawals taxed?
Your original contributions come out tax-free. The grants and growth are paid as an Educational Assistance Payment, which is taxable to the student.
Who pays the tax on RESP withdrawals?
The student, on the grant and growth portion. Because students often have little income, the tax is usually low or nil.
What proof is needed to withdraw?
Proof of enrolment in a qualifying institution and program is required before an Educational Assistance Payment is paid.
What if the child does not attend post-secondary?
There are options, including transferring to another beneficiary or, in some cases, moving growth to your RRSP, subject to conditions. A review covers the choices.
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This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.