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The FHSA limit for 2027 is $8,000 of new room, plus up to $8,000 of unused room carried forward, so the most you can contribute in 2027 is $16,000. The lifetime cap is $40,000. We found no official page announcing a change to these amounts for 2027.
What is the FHSA contribution limit for 2027?
The annual FHSA limit is $8,000 and the lifetime limit is $40,000. The CRA says your participation room in the year you open your first FHSA is $8,000, and the Income Tax Act builds the yearly limit on an $8,000 base plus any carry forward. A person with unused room from earlier years can therefore contribute up to $16,000 in one year.
Unlike the RRSP and TFSA, these dollar amounts are written into the Act. They are not indexed to inflation each January. For 2027 we found no official CRA or Income Tax Act wording that changes them, and the Budget 2026 material we found only lists the FHSA among existing home buyer supports. We did not read an FHSA change in it, but we could not check every page of the budget text. If Parliament changes a figure later, the CRA participation page is where it would show first. Our RRSP limit for 2027 and TFSA limit for 2027 pages cover the two accounts that do move.
| Item | Amount |
|---|---|
| New room in the year you open | $8,000 |
| New room in each later year | $8,000 |
| Unused room you can carry forward | Up to $8,000 |
| Most you can contribute in one year | $16,000 |
| Lifetime limit | $40,000 |
How does FHSA contribution room build up?
Room starts when you open the account, not when you put money in. Open an FHSA in 2026 and you have $8,000 of room for 2026. On January 1, 2027 another $8,000 arrives, and whatever you did not use in 2026 is added to it, up to $8,000 of carry forward. If you open your first account in 2027, you start with $8,000 and a carry forward of zero.
The CRA calculates room each year from the contributions and transfers you made in the calendar year. Investment growth does not use any room, and neither does a loss. The room is also shared across all your FHSAs, so opening a second account with another bank does not give you a second $8,000. Only you can contribute to your own FHSA, so a spouse cannot add to yours and claim the deduction.
You are not limited by income. A student with no earnings gets the same room as someone earning $150,000, though the deduction only helps if you have tax to reduce.
What does an FHSA contribution plan look like for 2026 to 2030?
Take Sam, who opens an FHSA in December 2026 with $3,000, then contributes the maximum each year. The figures below follow the CRA rules and were added up with a script.
| Year | New room | Carried forward | Total room | Contributed | Lifetime total |
|---|---|---|---|---|---|
| 2026 | $8,000 | $0 | $8,000 | $3,000 | $3,000 |
| 2027 | $8,000 | $5,000 | $13,000 | $13,000 | $16,000 |
| 2028 | $8,000 | $0 | $8,000 | $8,000 | $24,000 |
| 2029 | $8,000 | $0 | $8,000 | $8,000 | $32,000 |
| 2030 | $8,000 | $0 | $8,000 | $8,000 | $40,000 |
The carry forward is capped at $8,000, and that cap is why waiting costs you. Say Jordan opens an account in 2026, puts in nothing in 2026 or 2027, and then has $16,000 of room in 2027. If Jordan still contributes nothing, 2028 starts with $8,000 of new room plus a carry forward of only $8,000, so total room is $16,000, not $24,000. One year of room, $8,000, is gone for good.
Sam would reach the $40,000 cap in 2030. You can test your own start year and amounts in the FHSA calculator.
How does the FHSA deduction work?
Contributions are generally deductible on your return for the year you make them or any later year. The CRA says unused deductions can be carried forward, even beyond the closure of your accounts. That lets you contribute now and claim later, for instance when a raise is coming and your marginal rate will be higher.
Three limits apply. Your deduction cannot pass the $40,000 lifetime limit. Contributions made after your first qualifying withdrawal are not deductible in any year. And transfers from an RRSP are not deductible at all, because the money was already deducted when it went into the RRSP.
Unlike an RRSP, the first 60 days of a year do not count toward the previous year. The CRA states that contributions made in January and February 2027 cannot be deducted on your 2026 return. You report the account on Schedule 15, which the CRA says to complete for the year you open your first FHSA even if you contribute nothing.
The site’s FHSA calculator shows what a full $8,000 contribution saves an Ontario resident opening the account this year: $2,372 on $90,000 of taxable income and $1,674 on $50,000. Those are calculator outputs for one province, not a promise for your return. Our page on how the FHSA works has the basics.
What is a qualifying FHSA withdrawal?
A qualifying withdrawal is tax free and does not count as income. The CRA lists conditions that must all be met:
- You are a first-time home buyer: you did not live in a home you owned in the current year (leaving out the 30 days before the withdrawal) or the previous four calendar years.
- You have a written agreement to buy or build a qualifying home, with the purchase or completion before October 1 of the year after the withdrawal.
- You did not acquire the home more than 30 days before the withdrawal.
- You stay a Canadian resident until you acquire the home, and you plan to live in it as your main home within one year.
- You complete Form RC725 and give it to your FHSA issuer.
A withdrawal that fails these tests is taxable and has tax withheld. The FHSA also does not need to be repaid, which is the difference from the RRSP Home Buyers’ Plan, covered in our repayment schedule article.
When does the FHSA have to close, and can you move it to an RRSP?
The 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. If you open an account in December 2026, the 15th anniversary falls in 2041, so the account must be dealt with by December 31, 2041.
Before that date you can transfer what is left directly to your own RRSP or RRIF without tax, and the CRA says a direct transfer generally does not use up your RRSP deduction room. If you withdraw the money yourself instead, it is taxable and counts as a new RRSP contribution. Property still in the FHSA after the deadline stops being an FHSA, and its value on December 31 is added to your income.
Money can also flow the other way. An RRSP to FHSA transfer must fit inside your unused FHSA room, is not deductible and does not restore RRSP room. Compare both accounts in FHSA vs RRSP for a first home.
What should you do before December 31, 2026 and in early 2027?
Before December 31, 2026, open the account if you qualify. The $8,000 of 2026 room only exists once an FHSA is open, and any part you leave unused feeds next year’s carry forward. Contribute what you can afford, because a deposit made on January 5 cannot be deducted on your 2026 return.
In early 2027, check your room on CRA My Account or your Notice of Assessment before you contribute. An excess amount is taxed at 1% a month on the highest excess balance, and it also reduces next year’s room. Keep the T4FHSA slip your issuer sends, which reports your contributions, and file Schedule 15 with your return. Our year-end tax planning checklist places the FHSA next to the RRSP and TFSA deadlines.
Frequently asked questions
What is the FHSA contribution limit for 2027?
The annual FHSA limit is $8,000, and you can add up to $8,000 of unused room carried forward, so the most for 2027 is $16,000. The lifetime limit is $40,000. We found no official page announcing a change to these amounts for 2027, because the dollar figures sit in the Income Tax Act and are not indexed.
Can I carry forward unused FHSA room?
Yes, but only up to $8,000. If you skip a full year of contributions, that year's $8,000 carries into the next. If you skip a second year in a row, the carry forward stays at $8,000, so the second year's room is lost. Using room each year protects it.
Do I have to claim the FHSA deduction in the year I contribute?
No. The CRA says contributions are generally deductible in the year you make them or in a later year, and unused deductions can be carried forward. Contributions made in the first 60 days of a year cannot be applied to the previous year, unlike the RRSP.
What happens to my FHSA after 15 years or at age 71?
The account must be closed by December 31 of the earliest of the 15th anniversary of opening it, the year you turn 71, or the year after your first qualifying withdrawal. Before then you can transfer the balance directly to your RRSP or RRIF tax free. Property left in the account is added to your income.
Does an RRSP transfer to an FHSA count against my room?
Yes. An RRSP transfer into an FHSA must fit in your unused FHSA room and it reduces that room. It is not deductible, and it does not restore your RRSP room. The transfer must be made directly between institutions, using form RC720, or the withdrawal is taxable.
What if I contribute more than my FHSA room?
The CRA charges tax of 1% per month on the highest excess FHSA amount, and the excess also cuts your room for the following year. Check your room on CRA My Account before contributing, and ask your issuer how to withdraw the excess if you go over.