FHSA contribution limits 2025 and 2026: annual room, carry-forward, and deduction rules

The FHSA annual contribution limit is $8,000 per year for both 2025 and 2026 — it has not changed since the account was introduced in 2023. The lifetime contribution limit remains $40,000. To confirm current limits and any future changes, check the CRA FHSA page, which is updated when the federal government announces any limit changes.

If you contribute less than $8,000 in a given year, the unused room carries forward to the following year — but only up to $8,000 of carry-forward is allowed at once. Example: if you contribute $3,000 in 2024, you have $5,000 of unused room to carry forward. In 2025 you can contribute $8,000 (new room) + $5,000 (carried forward) = $13,000. The carry-forward only accumulates from the year the FHSA is opened — opening the account as early as possible is important even if you can only contribute a small amount.

Yes — FHSA contributions are tax-deductible (like RRSPs), but unlike RRSPs, you are not required to claim the deduction in the year you contribute. You can carry forward the deduction to a future year when you expect higher income — maximizing the tax savings. This makes the FHSA particularly powerful for buyers in their early career: contribute now, claim the deduction when you are in a higher tax bracket. Your FHSA deduction carried forward appears in your CRA My Account under FHSA contribution room.

The FHSA contribution room is the maximum amount you can deposit into your FHSA in a given year without penalty. The FHSA deduction limit is the cumulative amount of contributions you can actually claim as a tax deduction. You may have contributed more than you have deducted (if you carried the deduction forward), or vice versa. Over-contributions beyond your available contribution room are subject to a 1%/month penalty tax — similar to TFSA and RRSP over-contribution rules. Track both on CRA My Account.

Yes — FHSA accounts can be opened in Ontario at any eligible financial institution (major banks, credit unions, online brokerages). The FHSA rules are federal and identical in all provinces including Ontario — there are no provincial contribution limits or separate Ontario FHSA rules. Ontario-specific considerations: if you use your FHSA for a home purchase in Ontario, you will still need to pay the Ontario Land Transfer Tax (and Toronto LTT if applicable). First-time buyers in Ontario qualify for the Ontario First-Time Home Buyer Land Transfer Tax refund — up to $4,000 — regardless of whether they use an FHSA.

As of 2026, most major Canadian financial institutions offer FHSAs, including TD, RBC, BMO, Scotiabank, CIBC, Desjardins, EQ Bank, Wealthsimple, and others. HSBC Canada was acquired by RBC in 2024 — former HSBC Canada FHSA holders will have their accounts with RBC. HSBC-branded FHSAs are no longer available. The CRA list of registered FHSA issuers is the authoritative source of all eligible institutions. When comparing FHSAs, look at investment options available (savings rate, GICs, ETFs, stocks), account fees, and ease of making qualifying withdrawals.

An FHSA over-contribution occurs when your total contributions in a calendar year exceed your available contribution room (annual limit + carry-forward). The penalty is 1% per month on the excess amount — the same structure as RRSP over-contributions. To fix an over-contribution, you can withdraw the excess (a taxable withdrawal if not for a qualifying home purchase) or wait for new contribution room to open on January 1. File CRA Form RC243-SCH-A if you have excess FHSA amounts. Always confirm your available room via CRA My Account before contributing.