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A registered disability savings plan (RDSP) is a long-term savings plan for people approved for the disability tax credit. You can put in up to $200,000 over a lifetime, with no annual limit and no tax deduction. The federal government adds a grant of up to $3,500 a year and a bond of up to $1,000 a year, to lifetime caps of $70,000 and $20,000. Money taken out within 10 years of a grant or bond can trigger a repayment.
Who can open an RDSP?
The beneficiary must be approved for the disability tax credit, be a resident of Canada and have a Social Insurance Number. You can open a plan until 31 December of the year the beneficiary turns 59. Each beneficiary can have one plan, and each plan has one beneficiary.
The holder is the person who opens and manages the plan. For a minor, a parent, a legal representative or a public department can be the holder. An adult who can enter a contract alone holds their own plan. If an adult cannot, a legal representative is the holder, and if there is none, a spouse, common-law partner, parent or adult sibling may open it. Anyone can add money, as long as the holder gives permission.
How much do the grant and bond pay?
ESDC lists the 2026 rules below. Family income comes from the return filed two years earlier, so 2024 for 2026. Until the year the beneficiary turns 18, it is the parents’ or guardians’ combined income. From 19, it is the beneficiary’s own income plus a spouse’s, if there is one.
| Family income (2026 rules) | Grant | Maximum grant a year |
|---|---|---|
| $117,045 or less | 3 for 1 on the first $500 put in, 2 for 1 on the next $1,000 | $3,500, reached with $1,500 in contributions |
| Over $117,045 | 1 for 1 on contributions up to $1,000 | $1,000 |
| Family income (2026 rules) | Bond, no contribution needed |
|---|---|
| $38,237 or less | $1,000 a year |
| Between $38,237 and $58,523 | A smaller amount that falls as income rises |
| $58,523 or more | No bond |
Grants are paid until 31 December of the year the beneficiary turns 49, and only on contributions made by then. The lifetime limits are $70,000 for grants and $20,000 for bonds. Missed years can be caught up: unused grant room from the past 10 years of DTC approval can be claimed, but only by contributing, and a catch-up year can pay up to $10,500. When the plan opens, up to $11,000 of bonds can be claimed for the past 10 years plus the current year. Money rolled in from other registered plans earns no grant. The thresholds are indexed each year, and the 2027 figures have not been published yet (checked 31 October 2026).
How are withdrawals taxed, and what is the 10-year rule?
The CRA says contributions to an RDSP are not tax deductible, and contributions you take back out are not taxed. Grants, bonds and investment income are taxed as the beneficiary’s income when paid out. ESDC adds that in Quebec, New Brunswick and Prince Edward Island, withdrawals may reduce provincial benefits.
The 10-year rule: if grants or bonds were paid into the plan in the last 10 years, you must repay $3 for every $1 withdrawn, up to the total of grants and bonds paid in that period. There is no repayment once the beneficiary has turned 60, or if a medical attestation shows a life expectancy of 5 years or less. In that second case, up to $10,000 a year can be withdrawn under conditions.
Two kinds of payment come out of the plan. A disability assistance payment is a one-off request and includes only grants and bonds paid in more than 10 years earlier, plus a share of contributions and growth. Lifetime disability assistance payments are recurring, must begin by the end of the year the beneficiary turns 60, and continue at least once a year until the beneficiary dies or the money runs out.
Worked example
Priya is 25, with a 2024 family income of $35,000 and DTC approval. She puts in $1,500 in 2026. The grant is 3 times $500 plus 2 times $1,000, which is $3,500. Her income is under $38,237, so the full $1,000 bond also arrives. The plan gains $4,500 from the government on her $1,500. This is our calculation from the ESDC rates. After three years of the same pattern, with $13,500 of grants and bonds in the plan, she takes out $2,000. The 10-year rule means $3 back for each $1, so $6,000 goes back to the government. Because that is less than the $13,500 paid in, the repayment is the full $6,000.
How does it differ from an RRSP or TFSA?
| RDSP | RRSP | TFSA | |
|---|---|---|---|
| Who can use it | People approved for the DTC, up to age 59 to open | Anyone with RRSP room | Anyone eligible with TFSA room |
| Contribution limit | $200,000 lifetime, no annual limit | $33,810 for 2026 (the dollar limit, before your own room) | $7,000 for 2026 |
| Tax deduction for contributions | None | Yes, deductible contributions reduce tax | None |
| Government money | Grants and bonds | None | None |
The RRSP figure is the dollar limit only, since your own room depends on your earnings. The CRA says you generally pay tax when you receive payments from an RRSP. See our RRSP contribution limit article for how room is built.
What if DTC approval is lost?
The holder can close the plan or keep it open. While it stays open, contributions are not allowed and no grants or bonds are paid. You do not have to repay grants or bonds solely because approval was lost. Withdrawals before the year the beneficiary turns 60 still trigger repayment of grants and bonds from the 10 years before approval was lost. If approval returns, the plan works normally again. Check with your financial organization, since the rules for the type of payment vary by institution. Official pages: Employment and Social Development Canada: How much you could get in grants and bonds and Employment and Social Development Canada: Withdraw money from your plan. If the beneficiary does not yet have DTC approval, start with the disability tax credit calculator.
Where does this information come from?
Rules and figures come from the Employment and Social Development Canada pages on the Canada disability savings program (how much you could get, who can open a plan, contributions, withdrawals, loss of DTC approval) and the CRA page on registered disability savings plans, checked on 31 October 2026. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
How much is the RDSP grant?
On the 2026 rules, a family income of $117,045 or less gets 3 for 1 on the first $500 and 2 for 1 on the next $1,000, up to $3,500 a year. Above that income the grant is 1 for 1 on up to $1,000, so a maximum of $1,000 a year.
Who can open an RDSP?
The beneficiary must be approved for the disability tax credit, be a Canadian resident and have a SIN. A plan can be opened until 31 December of the year the beneficiary turns 59, though grants and bonds stop after the year they turn 49.
Are RDSP contributions tax deductible?
No. The CRA says contributions are not tax deductible, and contributions taken back out are not taxed. Grants, bonds and investment income are taxed as the beneficiary's income when paid out of the plan.
What is the RDSP 10-year rule?
If grants or bonds were paid in during the last 10 years, withdrawing money means repaying $3 for every $1 withdrawn, up to the grants and bonds paid in that period. It does not apply after the beneficiary turns 60 or with a life expectancy of 5 years or less.
Is there a limit on RDSP contributions?
There is no annual limit. The lifetime limit is $200,000, which counts contributions, transfers and rollovers but not grants, bonds or investment growth. Contributions above what is needed for the maximum grant do not earn matching money.
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