The Quebec Education Savings Incentive is a refundable provincial tax credit that pays 10% of your annual Registered Education Savings Plan contributions directly into the RESP, up to $250 per year and $3,600 over the child’s lifetime. Lower- and middle-income families can receive an additional top-up on the first $500 contributed each year. You never claim the credit on your tax return; your RESP provider files for it, and Revenu Quebec deposits the money into the plan.
How Much the Credit Pays
The basic credit is 10% of net contributions made during the calendar year, capped at $250. Net contributions means what you put in minus any withdrawals taken before the trustee applies for the credit. Contributing $2,500 in a year hits the $250 ceiling.
Families under certain income thresholds receive an additional amount on the first $500 contributed each year. The lowest-income tier gets an extra 10% (up to $50), and the middle tier gets an extra 5% (up to $25). A family in the lowest bracket can therefore receive up to $300 in a single year. Revenu Quebec pulls your family income directly from your tax return, so no separate application is required for the top-up. The thresholds are adjusted annually.
Across all RESPs opened for the same child, the QESI is capped at $3,600 lifetime. At the basic rate alone, hitting the cap takes roughly 14 to 15 years of maximum contributions.
Who Qualifies
Four conditions attach to the child named as the RESP beneficiary, and all four must be met in the tax year:
- The child is under 18 at the end of the year.
- The child has a valid Social Insurance Number.
- The child lives in Quebec on December 31 of that year.
- The child is a beneficiary under an active RESP held with a financial institution that offers the QESI.
The subscriber (typically a parent or guardian) makes the contributions, but eligibility turns on the child’s status. Not every RESP provider participates in the QESI, so confirm with your institution before contributing. If they aren’t a registered QESI trustee, your contributions won’t trigger any provincial credit.
How to Apply and When the Money Arrives
You do not apply for the QESI yourself, and it does not appear on your income tax return. Your RESP trustee submits the application to Revenu Quebec. The trustee has up to three years after the year the contributions were made to file, which means missed credits from prior years can still be recovered.
Contributions must be in the RESP by December 31 to count toward that year’s credit. Revenu Quebec pays the QESI once a year, in May, after the trustee submits the request within 90 days of year-end. The money goes straight into the RESP and starts earning returns alongside your contributions and any federal grant. You’ll see the deposit on your regular account statement.
The subscriber and beneficiary both need valid SINs on file, and the institution needs the beneficiary’s legal name, date of birth, and Quebec residency information to file.
How the QESI Stacks with the Federal CESG
The Canada Education Savings Grant and the QESI run in parallel and both flow into the same RESP. The federal CESG pays 20% on the first $2,500 of annual contributions, up to $500 per year, with a $7,200 lifetime limit. The QESI adds its 10% on the same contributions.
A $2,500 contribution in one year can therefore attract $500 from Ottawa and $250 from Quebec, for $750 in combined government grants on top of what you put in. The two programs have independent lifetime caps ($7,200 federal, $3,600 provincial), and receiving one has no effect on the other. Employment and Social Development Canada handles the CESG; Revenu Quebec handles the QESI. No coordination is needed on your end beyond making sure your RESP provider participates in both.
Extra Rules If the Child Is 16 or 17
If the beneficiary is 16 or 17 at year-end, the QESI still pays, but only if earlier contributions cleared a minimum before December 31 of the year the child turned 15. At least one of these has to be true:
- A minimum of $2,000 was contributed to the child’s RESP, or
- At least $100 was contributed in each of any four separate years.
When a QESI request is filed in the year the child turns 17, the RESP must have been registered in the child’s name for at least four years (not necessarily consecutive) before that tax year. These rules block last-minute lump sums from capturing the credit. The year the child turns 15 is effectively the deadline to meet the minimums if you’ve delayed opening the plan.
If the Family Moves Out of Quebec
QESI money already deposited stays in the RESP even if the beneficiary leaves the province. But while they live outside Quebec, the QESI portion of any Educational Assistance Payment is treated as zero. The money sits in the account and can’t be paid out to the student.
If the beneficiary moves back to Quebec and is still eligible for an EAP, the full QESI balance becomes accessible again. If they never return, three options remain: replace the beneficiary with another child who lives in Quebec, share the QESI among beneficiaries under a family plan, or reimburse the QESI to Revenu Quebec when the contract closes.
When the QESI Has to Be Repaid
The credit is tied to education. The full QESI must be returned to Revenu Quebec if the subscriber closes the RESP before the beneficiary pursues post-secondary education, or if the beneficiary never enrolls in a qualifying program by the time the plan expires. An RESP can stay open for up to 35 years from creation (40 years if the beneficiary qualifies for the disability tax credit).
Withdrawing your original contributions for non-educational reasons triggers a proportional clawback of the QESI. The trustee is required to withhold the repayment before releasing the remaining assets, and this happens automatically. Families whose child changes course should look at transferring the RESP to a sibling or replacement beneficiary who lives in Quebec, which preserves the QESI rather than sending it back.
Which Programs Count at Withdrawal Time
When the student enrolls, QESI money flows out as part of an Educational Assistance Payment. The range of qualifying study is wider than many families assume. It includes full-time post-secondary programs of at least three consecutive weeks at 10 or more hours per week; part-time post-secondary programs of at least three consecutive weeks at 12 or more hours per month for students 16 and older; vocational training at institutions certified by Employment and Social Development Canada; and full-time study abroad at a university (three-week minimum leading to a degree) or a non-university institution (13-week minimum). Eligible Canadian institutions include universities, colleges, CEGEPs, and other designated post-secondary schools. EAPs can cover tuition, books, and living costs, and they are taxable in the student’s hands, though students with low income during school often pay little or no tax on them.