The FHSA contribution limit for 2026 is $8,000, plus any carry-forward from 2025 to a maximum of another $8,000. That means the most anyone can contribute in 2026 is $16,000. Across the life of the account, total contributions are capped at $40,000.
Those three numbers are simple. The way they interact is not, especially the carry-forward cap, which works differently from the TFSA and RRSP rules most people already know.
2026 FHSA limits at a glance
- Annual limit: $8,000 (not indexed to inflation)
- Carry-forward: unused room from last year, up to $8,000
- Maximum in a single year: $16,000
- Lifetime limit: $40,000 across all your FHSAs
- Deadline: December 31, 2026. There's no 60-day grace period.
- Over-contribution penalty: 1% of the excess per month
The annual limit
You receive $8,000 of new FHSA room in the year you open your first account, and another $8,000 on January 1 of each following year. The amount has been $8,000 every year since the program launched in 2023, and there's no inflation indexing built into the rules.
You don't get room for years before you opened an account. Someone who first opens an FHSA in 2026 has $8,000 of room in 2026, not $32,000 for 2023 through 2026. This is the main reason to open an account early, even if you can't contribute yet.
How carry-forward works, and its cap
If you don't use all of your room in a year, the unused portion carries forward to the next year, but only up to $8,000. Room beyond that doesn't disappear from your lifetime limit, but you can't use more than $16,000 in any single year.
| Year | New room | Carried in | Available | Contributed |
|---|---|---|---|---|
| 2024 | $8,000 | $0 | $8,000 | $0 |
| 2025 | $8,000 | $8,000 | $16,000 | $0 |
| 2026 | $8,000 | $8,000 (not $16,000) | $16,000 | $16,000 |
In this example, $24,000 of room was created but only $16,000 is usable in 2026. The other $8,000 isn't gone, because the person can still reach the $40,000 lifetime limit, but it takes them an extra year to get there.
The common mistake: assuming FHSA room accumulates like TFSA room and contributing $24,000 in year three. Anything over $16,000 in that year is an excess contribution and starts costing 1% a month.
Partial contributions
Carry-forward also applies when you contribute some, but not all, of your room:
| Year | Available | Contributed | Carries to next year |
|---|---|---|---|
| 2024 | $8,000 | $5,000 | $3,000 |
| 2025 | $11,000 | $5,000 | $6,000 |
| 2026 | $14,000 | $5,000 | $8,000 (capped) |
The $40,000 lifetime limit
Your total contributions across every FHSA you hold can't exceed $40,000. Investment growth doesn't count toward it. If you contribute $40,000 and it grows to $52,000, you can withdraw all $52,000 tax-free for a qualifying home.
Transfers from an RRSP into an FHSA do count against both your annual and lifetime limits, and you don't get a new deduction for them, since you already deducted that money when it went into the RRSP.
Withdrawals don't restore room
Unlike a TFSA, taking money out of an FHSA doesn't give you the room back. If you contribute $8,000, withdraw it for a non-qualifying reason and pay tax on it, you've still used $8,000 of your $40,000.
Over-contributing: the 1% penalty
If your contributions exceed your available room, the CRA charges a tax of 1% per month on the highest excess amount in that month, for as long as the excess remains. You can fix it in two ways:
- Make a designated withdrawal or a designated transfer to your RRSP to remove the excess.
- Wait for January 1. New annual room absorbs the excess, but you still owe the 1% for each month it existed.
How to check your FHSA room
The CRA reports your FHSA participation room on your latest notice of assessment, and in My Account under "RRSP, TFSA and FHSA." Bear in mind the CRA figure only reflects information up to your last tax return. Contributions you've made this year won't show yet, so keep your own running total.
Want to see how your contributions add up over time? Try the FHSA calculator.
Frequently asked questions
What is the FHSA limit for 2026?
$8,000 of new room, plus up to $8,000 carried forward from 2025, for a maximum of $16,000 in 2026.
Will the FHSA limit go up in 2027?
No change has been announced. The annual limit isn't indexed, so it stays at $8,000 unless the government changes the law.
Can I contribute in January and February for last year's limit?
No. FHSA contributions count for the calendar year they're made in. There is no first-60-days rule as there is for RRSPs.
Does opening a second FHSA give me more room?
No. All of your FHSAs share one set of limits.
Does investment growth count toward the $40,000?
No. Only contributions and transfers in from an RRSP count. Growth is unlimited.
Sources
- Canada Revenue Agency, Definitions for FHSAs (annual FHSA limit and carry-forward)
- Canada Revenue Agency, What happens if you contribute or transfer too much to your FHSAs