First Home Savings Account (FHSA): limits, rules and how it compares with the RRSP
Quick summary
The First Home Savings Account (FHSA) lets you save up to $8,000 a year, to a $40,000 lifetime limit, for a first home. Money in can be deducted, and money out for a qualifying home is not taxed. The rules are strict, so read each step. If you would rather start with the other plan, see the Home Buyers' Plan guide.
Checked November 3, 2026. Main source: CRA: First Home Savings Account (modified Feb. 2, 2026). See all 9 sources.
Key facts
- Room
- $8,000 in the year you open it, then $8,000 plus unused room (carry-forward capped at $8,000), to $40,000 in total
- Source: CRA, modified Sept. 17, 2026
- First-time buyer test
- Have not lived in a home you owned in the current year or the previous 4 calendar years
- Source: CRA, modified Feb. 10, 2026
- Contributions in the first 60 days of a year
- Cannot be deducted on the return for the year before
- Source: CRA, modified Apr. 15, 2026
- Participation period ends
- Dec. 31 of the earliest of: 15th anniversary of opening, the year you turn 71, or the year after your first qualifying withdrawal
- Source: CRA, modified Feb. 2, 2026
The numbers
| Item | What the CRA says |
|---|---|
| Room in the year you open it | $8,000 |
| Annual room after that | $8,000 plus carry-forward (carry-forward is capped at $8,000) |
| Lifetime limit | $40,000 |
| Longest time you can take part | Ends December 31 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 |
| Tax if you go over | 1% a month on the highest excess amount |
Sources: CRA: Participating in your FHSAs (modified Sept. 17, 2026); CRA: Closing your FHSA (modified Feb. 2, 2026). The CRA lifetime figure of $40,000 is in its deduction rules (CRA: Tax deductions for FHSA contributions (modified Apr. 15, 2026)).
Who can open an FHSA
You must be a resident of Canada and at least 18 (19 in some provinces). You must be 71 or younger on December 31 of the year you open it.
You must be a first-time home buyer for opening purposes: you have not lived in a qualifying home that you owned, as your main home, in the current year or the previous 4 calendar years. The page says your spouse or partner's home history matters too.
You can open more than one FHSA.
Source: CRA: Opening your FHSAs (modified Feb. 10, 2026).
Is it tax deductible?
The CRA says FHSA contributions are generally deductible and only the account holder can claim them. Transfers from your RRSP into an FHSA are not deductible.
You can deduct a contribution in the year you make it or in a later year. Unused deductions can be carried forward, even after your FHSAs are closed. Unlike an RRSP, contributions made in the first 60 days of a year cannot be deducted on the return for the year before.
Sources: CRA: Tax deductions for FHSA contributions (modified Apr. 15, 2026); CRA: Participating in your FHSAs (modified Sept. 17, 2026).
Taking money out tax free
A withdrawal to buy a qualifying home is not taxed if all of these are true:
- You are a first-time home buyer for withdrawal purposes (not lived in a home you owned in the current year, except the 30 days before the withdrawal, or the previous 4 calendar years).
- You have a written agreement to buy or build, and the home is acquired or finished before October 1 of the year after the withdrawal.
- You did not buy the home more than 30 days before the withdrawal.
- You are a Canadian resident until you buy the home.
- You move in as your main home within one year.
- You send Form RC725 to your FHSA issuer.
Source: CRA: Withdrawals and transfers out of your FHSAs (modified Feb. 10, 2026). A withdrawal that does not meet these rules is taxable income.
Closing and transfers
After a qualifying withdrawal, you must close all your FHSAs by December 31 of the following year. You can move money tax free by direct transfer to an RRSP, a RRIF or another FHSA, using Form RC721 for an RRSP or RRIF. A move into a TFSA is taxable.
Source: CRA: Withdrawals and transfers out of your FHSAs (modified Feb. 10, 2026).
FHSA vs RRSP
Both give a deduction when you put money in. The difference is what happens when you take it out. FHSA money used for a qualifying first home is not taxed. RRSP money used under the Home Buyers' Plan is a withdrawal you repay over 15 years. Check the CRA page for the tax rules and for what happens if you miss a repayment.
The FHSA has a $40,000 lifetime limit and a maximum participation period of up to 15 years. The RRSP is a retirement plan with a yearly dollar limit ($33,810 for 2026). Read both CRA pages before you decide.
| FHSA | RRSP with Home Buyers' Plan | |
|---|---|---|
| Deduction on contributions | Yes | Yes |
| Tax on withdrawal for a first home | None, if it qualifies | You repay it over 15 years (see the CRA page for the tax rules) |
| Withdrawal limit for the home | What you have saved | $60,000 |
| Contribution limit | $8,000 a year, $40,000 lifetime | $33,810 for 2026, based on your room |
Sources: CRA: Participating in your FHSAs (modified Sept. 17, 2026); CRA: What is the Home Buyers' Plan (modified Feb. 17, 2026); CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE (modified Oct. 28, 2026).
Find your FHSA room
Enter what you put in each year. This uses the CRA rules above. It is a simple check, so confirm your room in CRA My Account before you contribute.
Nothing is saved or sent. Include money moved in from your RRSP as well, because the CRA counts contributions and transfers.
Room left for 2026: $8,000
Room for 2026 was $8,000. You put in $0.
Total put in so far: $0. Lifetime room left: $40,000 of $40,000.
If you add nothing more, your room for 2027 would be $16,000.
Rules used: $8,000 in the year you open; after that $8,000 plus unused room from the year before, with that carry-forward capped at $8,000; $40,000 total. The CRA says other adjustments can apply, so your CRA My Account figure is the one that counts.
Your key FHSA dates
The CRA lists these dates. Enter your own years to see when your participation period ends.
| Date | What the CRA says |
|---|---|
| April 1, 2023 | You can open an FHSA starting this date |
| December 31, 2026 | The last day to put money in that counts for 2026. Contributions made in the first 60 days of 2027 cannot be deducted on your 2026 return |
| December 31 of the year you open | You must be 71 or younger on this date |
| October 1 of the year after a withdrawal | The qualifying home must be bought or built before this date |
| December 31 of the year after your first qualifying withdrawal | Your participation period ends, and you should close your FHSAs |
Enter the year you opened your first FHSA to see your date.
Sources: CRA: Important dates for RRSPs, HBP, FHSAs and more (modified Jan. 29, 2026); CRA: Opening your FHSAs (modified Feb. 10, 2026); CRA: Tax deductions for FHSA contributions (modified Apr. 15, 2026); CRA: Closing your FHSA (modified Feb. 2, 2026). The CRA important dates page lists no FHSA dates for 2027 yet, so we show none.
FHSA checklist
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What to do next
Check what you learned
3 quick questions. Nothing is saved or sent.
1. How much FHSA room do you get in the year you open it?
2. Can you deduct an FHSA contribution made in January on last year's return?
3. Who must you be to open an FHSA?
Questions people ask
What is the FHSA limit?
$8,000 a year, with up to $8,000 carried forward, to a $40,000 lifetime limit, per the CRA.
Who can open an FHSA?
A Canadian resident who is 18 or older (19 in some provinces), 71 or younger at the end of the year, and a first-time home buyer: not living in a home you owned in the current year or the previous 4 calendar years.
Is the FHSA tax deductible?
Contributions are generally deductible by the account holder. Transfers from an RRSP are not deductible.
Is an FHSA withdrawal taxed?
Not if it is a qualifying withdrawal for a first home. Other withdrawals are taxable income.
Can I use the FHSA and the RRSP Home Buyers' Plan together?
They are separate programs with their own rules. Read both pages. Our guide to the Home Buyers' Plan is linked above.
What happens to leftover FHSA money?
You can transfer it directly to an RRSP or RRIF without tax if the rules are met. Close the account by December 31 of the year after your first qualifying withdrawal.
How long can I keep an FHSA?
Your maximum participation period ends on December 31 of the earliest of three events: the 15th anniversary of opening your first FHSA, the year you turn 71, or the year after your first qualifying withdrawal. Use the date finder above to see yours.
Can I deduct a contribution made in January for last year?
No. The CRA says contributions made in the first 60 days of the year cannot be deducted on the return for the previous year, unlike RRSP contributions.
Try it with your numbers
Does your province have its own rules?
Taxes and fees on a home purchase, and some programs for first-time buyers, differ by province. Pick yours to see where to look. We remember your choice on this device only.