FHSA contribution limit 2026: $8,000 a year, carry-forward, deadline and over-contribution penalty
Search "FHSA contribution limit" and you get the $8,000 headline. The rules that actually trip people up are quieter: room that does not exist until you open the account, a carry-forward capped at one year, RRSP transfers that count against the same room, and a deadline that ends on December 31, not March 1. Here is each rule from the CRA, a worked example, and a calculator for your own numbers.
On this page
FHSA room calculator
How much can you put in your FHSA this year?
Simplified from the CRA formula: room this year is $8,000 plus your carry-forward (capped at $8,000), limited by what is left of the $40,000 lifetime limit. It ignores designated amounts and re-participation room. Your exact figure is on your notice of assessment or in CRA My Account under Savings and pension plans.
The FHSA limits in one table
| Rule | Amount or date |
|---|---|
| Annual participation room | $8,000 |
| Most you can carry forward | $8,000 (so up to $16,000 in one year) |
| Lifetime limit | $40,000 |
| Room in the year you open your first FHSA | $8,000 |
| Contribution period | January 1 to December 31 |
| Tax on an excess amount | 1% a month on the highest excess in the month |
| Do RRSP to FHSA transfers use room? | Yes, and they are not deductible |
| Does investment growth use room? | No |
The room applies across all your FHSAs. You can open one at your bank and one at a brokerage, but the total you put into both in a year cannot be more than your room. If you are new to the account, start with our FHSA explained guide for who qualifies and how withdrawals work.
Your room starts when you open the account
This is the rule that costs people the most. A TFSA collects room from the year you turn 18 whether or not you have an account. An FHSA does not. The CRA says your participation room is $8,000 in the year you open your first FHSA, and nothing before that.
The CRA's own example: Wendy opened her first FHSA in June 2026 and put nothing in. After she filed her 2026 return with Schedule 15, her statement showed $16,000 of room for 2027: the new $8,000 plus the $8,000 she carried forward. If she had waited until 2027 to open it, she would have had only $8,000 for 2027.
So if you think you might buy a first home in the next few years, opening an FHSA before December 31, 2026, even with a small deposit or none, starts the clock. Two things to know:
- You must file Schedule 15 with your return for the year you open your first FHSA, even if you put nothing in. That is how the CRA learns the account exists.
- Opening starts your maximum participation period. It ends on December 31 of the year of the earliest of: the 15th anniversary of opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal.
How carry-forward works
Unused room carries into the next year, but only up to $8,000. You cannot bank three years of room and dump in $24,000. The pattern looks like this for someone who opens in 2026 and contributes nothing:
| Year | New room | Carried in | Room for the year |
|---|---|---|---|
| 2026 (opened) | $8,000 | $0 | $8,000 |
| 2027 | $8,000 | $8,000 | $16,000 |
| 2028 | $8,000 | $8,000 (capped) | $16,000 |
In 2028 the unused $16,000 from 2027 does not all carry forward; only $8,000 does. The rest is not lost from your $40,000 lifetime limit, but you would need more years to use it. If you have made taxable withdrawals or designations, the CRA formula adds extra pieces (re-participation room and designated amounts), so check the figure in CRA My Account rather than doing it by hand.
The deadline is December 31, not March 1
The CRA states it plainly: the FHSA contribution period runs from January 1 to December 31 of the same year. Contributions made in the first 60 days of the next year cannot be deducted on the previous year's return, unlike RRSP contributions.
The CRA's example: Arlene opened an FHSA in 2025 and put nothing in. On January 15, 2026 she contributed $5,000 and hoped to claim it on her 2025 return. She could not. She can deduct it on her 2026 return or a later one. If you want a deduction for 2026, the money has to land by December 31, 2026. Leave a few business days for transfers. For the RRSP's different rule, see our RRSP first 60 days guide.
Over-contribution: the 1% a month tax
If your contributions plus RRSP transfers in a year are more than your room, the difference is an excess FHSA amount. The CRA charges 1% a month on the highest excess in each month, for as long as it stays. There is no $2,000 buffer like the RRSP has.
- The excess shrinks on January 1 when new room arrives, or when you remove it.
- You can remove it with a designated withdrawal or a designated transfer to your RRSP using Form RC727, or with a taxable withdrawal.
- You report and pay the tax on Form RC728 and Schedule A.
- An excess left at year end also reduces next year's room.
A common way to get there: transferring from an RRSP and contributing new money in the same year, and forgetting that both count. The CRA's Janella example: $5,000 contributed plus a $5,000 RRSP transfer against $8,000 of room left a $2,000 excess. The TFSA has a similar tax; our TFSA over-contribution guide compares them.
Worked example
Priya opened her first FHSA in 2025 and put in $3,000. In 2026 she gets a bonus and wants to deposit $15,000 in June.
| Step | Arithmetic | Result |
|---|---|---|
| Unused 2025 room carried forward | $8,000 − $3,000 | $5,000 |
| Room for 2026 | $8,000 + $5,000 | $13,000 |
| Excess if she deposits $15,000 | $15,000 − $13,000 | $2,000 |
| Tax per month on the excess | $2,000 × 1% | $20 |
| Tax if it stays June to December | $20 × 7 months | $140 |
| Better plan: deposit $13,000 in 2026 | $40,000 − $3,000 − $13,000 | $24,000 lifetime left |
By depositing $13,000 now and the last $2,000 on or after January 1, 2027, Priya avoids the $140 and keeps the full amount working. The $140 is small, but the paperwork (RC728, Schedule A) is the bigger nuisance.
Deducting your contributions
FHSA contributions are generally deductible like RRSP contributions, but you choose when to claim them. You can deduct in the year you contribute or carry the deduction forward to a later year, even after the account closes. That can make sense if your income is low now and you expect it to rise. A few things the CRA says are not deductible:
- Transfers from your RRSP to your FHSA (you already got the RRSP deduction).
- Contributions made after your first qualifying withdrawal.
- Amounts above the $40,000 lifetime limit, and excess amounts you designate as a withdrawal.
- Investment losses, admin fees and interest on money borrowed to contribute.
Options people compare
| Option | What it does | Watch for |
|---|---|---|
| Open an FHSA now, fund later | Starts room and the 15-year clock | Schedule 15 the first year |
| Fill $8,000 each year | Reaches $40,000 in five years | Deadline is December 31 |
| Transfer from an RRSP | Moves existing savings without tax | Uses FHSA room and gives no new deduction |
| Use the HBP as well | Adds up to $60,000 from RRSPs for the same home | HBP must be repaid |
For buying with both, see FHSA and HBP together. For every federal and provincial program a first-time buyer can stack in 2026, see our first-time home buyer programs guide. Room calculators for the TFSA and RRSP are on the tools page.
How to use your FHSA room without a penalty
- Open your first FHSA by December 31 to start your $8,000 of room for that year.
- File Schedule 15 with your return for the year you opened it, even if you contributed nothing.
- Check your room on your notice of assessment or in CRA My Account before each deposit.
- Add up contributions and RRSP transfers together across all your FHSAs; both use the same room.
- Deposit by December 31 if you want the room for that year; there is no 60-day rule.
- If you go over, remove the excess quickly with Form RC727 and report the 1% a month tax on Form RC728.
Questions people ask
What is the FHSA contribution limit for 2026?
$8,000 of new room for 2026, plus up to $8,000 of unused room carried forward from 2025 if you opened your first FHSA before 2026. The lifetime limit is $40,000.
Is the FHSA limit $8,000 or $16,000?
$8,000 a year. You can reach $16,000 in one year only if you carry forward $8,000 of unused room from the year before, which requires that you had already opened an FHSA.
Do I get FHSA room before I open an account?
No. The CRA says your participation room is $8,000 in the year you open your first FHSA. Unlike a TFSA, room does not build up before that.
What is the FHSA contribution deadline?
December 31. Contributions made in the first 60 days of the next year cannot be deducted on the previous year's return, unlike RRSP contributions.
What is the FHSA over-contribution penalty?
A tax of 1% a month on the highest excess FHSA amount in each month until it is eliminated. You file Form RC728 and Schedule A to report and pay it.
Do RRSP to FHSA transfers count toward the limit?
Yes. Contributions and RRSP transfers share the same participation room, and transfers are not deductible.
Does investment growth in my FHSA use room?
No. Income and gains earned inside the FHSA do not count toward your participation room.
Can I carry forward more than $8,000?
No. Carry-forward is capped at $8,000. Room above that is not lost from the $40,000 lifetime limit, but you need more years to use it.
Looni reads your statements and flags bank fees, forgotten subscriptions and interest you may be paying without noticing, so more of each paycheque can go toward a first home. Read-only, no advice.
Sources
Canada Revenue Agency, Participating in your FHSAs ($8,000 in the year you open your first FHSA, room across all FHSAs, income does not use room, carry-forward up to $8,000, room formula, Schedule 15, the Wendy, Julianne and Karla examples), Tax deductions for FHSA contributions (January 1 to December 31 contribution period, no first-60-days deduction, $40,000 lifetime deduction, RRSP transfers not deductible, the Arlene and Janella examples), What happens if you contribute or transfer too much to your FHSAs (1% a month tax, new room on January 1, Forms RC727 and RC728) and Closing your FHSA (maximum participation period). The Priya example is illustrative; the arithmetic is ours.