Key takeaways
- You can contribute $8,000 a year, up to $40,000 in your lifetime
- Up to $8,000 of unused room carries forward, so the most in one year is $16,000
- Room only starts in the year you open your first FHSA: open one early, even with $1
- Contributions are tax-deductible; qualifying withdrawals to buy a home are tax-free
- You must be 18+, a resident of Canada and a first-time home buyer to open one
FHSA limits and rules in 2026
| Rule | Amount |
|---|---|
| Annual participation room | $8,000 |
| Lifetime limit | $40,000 |
| Maximum carry-forward | $8,000 of unused room |
| Most you can contribute in one year | $16,000 (with carry-forward) |
| Over-contribution tax | 1% a month on the highest excess |
| Maximum time the account can stay open | 15 years, or until the end of the year you turn 71, or the year after your first home withdrawal |
Transfers from your RRSP to your FHSA also use FHSA room, but they do not give a new deduction.
Who can open an FHSA?
CRA calls you a "qualifying individual" if, when you open the account, you are:
- 18 or older
- a resident of Canada
- a first-time home buyer: you did not live in a home that you or your spouse or common-law partner owned at any time in the current year (before opening) or the previous four calendar years
Newcomers who owned a home in their home country can still qualify, if they did not live in a home they owned in that period. If you sold your home abroad more than four full calendar years ago, you may already qualify.
How the calculator counts your room
You get $8,000 of room in the year you open your first FHSA and on January 1 of each year after. Unused room carries forward, but only up to $8,000. The calculator works out your unused room from earlier years, caps it at $8,000, adds this year’s $8,000, and subtracts what you have already put in this year. It also checks the $40,000 lifetime limit.
It then projects your balance with your planned contributions and return, and estimates your tax saving with the 2026 tax rates in your province.
Worked example
Raj opened his FHSA in 2025 and contributed the full $8,000. In 2026 he has put in $2,000 so far. He has no carry-forward, so he can add $6,000 more in 2026. He earns $70,000 in Ontario, so his marginal rate is about 29.65%. If he keeps contributing until he reaches $40,000, his deductions save him about $8,900 in tax, and at a 4% return his FHSA grows to about $42,600 by the end of 2029.
Deduct now or later?
You do not have to claim the deduction in the year you contribute. You can carry it forward to a year when your income, and your marginal rate, is higher. This can help newcomers whose first year in Canada had low income. Check your rate with the marginal tax rate calculator.
FHSA, RRSP or TFSA?
If you are saving for a first home, the FHSA usually comes first: it combines the RRSP deduction with TFSA-style tax-free withdrawals. You can also use the RRSP Home Buyers’ Plan in the same purchase. See RRSP vs TFSA and your first-year TFSA and RRSP room. When you are ready to buy, try the mortgage affordability calculator and the first-time buyer rebate calculator.