InfoCapsule 10: Canada Disability Savings Grant

On this page

• List of acronyms
• Income matching rate definitions
• Preface
• Eligibility criteria
• Which income is used to determine CDSG entitlements
• CDSG matching rates

Alternate format

A PDF version of the InfoCapsules for RDSP providers is available on the index page.

Income matching rate definitions

Phase out income

The income level above which the annual amount of Canada Disability Savings Bond payable begins to decrease.

First threshold

The income level that, when reached or exceeded, the annual amount of Canada Disability Savings Bond payable is nil.

Second threshold

The income level that, when below or equal to, the matching grant will be:

• 300% of the first $500 in contributions
• 200% of the next $1,000 in contributions

When income is above this level, the matching grant will be 100% of the first $1,000 in contributions.

Preface

The Canada Disability Savings Grant (CDSG) is a matching grant paid into a Registered Disability Savings Plan (RDSP) by the Government of Canada. Depending on the beneficiary’s family income, the CDSG is paid based on the amount contributed to the plan.

Eligibility criteria

For the CDSG to be paid, the beneficiary must:

• be a resident of Canada
• be approved for the Disability Tax Credit (DTC)
• have a valid Social Insurance Number (SIN)

Contributions must be made by December 31 of the calendar year in which the beneficiary turns 49 years of age.

Which income is used to determine CDSG entitlements

• Until the end of the calendar year, when the beneficiary turns 18 years of age: the individual primary caregiver’s (PCG) family income.
• Beginning the calendar year, when the beneficiary turns 19 years of age: the beneficiary’s family income.

For a beneficiary in care, the public PCG must receive a payment under the Children’s Special Allowances Act (for at least one month of the calendar year).

CDSG matching rates