Participating in your FHSAs
Learn how much you can contribute or transfer into your first home savings accounts (FHSAs).
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How much you can contribute or transfer
Your FHSA participation room for the year is the maximum amount that you may contribute or transfer to your FHSAs in the year without creating an excess FHSA amount .
Your FHSA participation room in the year you open your first FHSA =$8,000
Generally, your next year's FHSA participation room will be:
- plus $8,000 (new FHSA participation room for the next year)
- +plus your unused FHSA participation room at the end of the current year (max. $8,000), subject to the lifetime FHSA limit
- =eqauls next year's FHSA participation room
The lifetime FHSA limit =$40,000
Generally, all contributions you make to your FHSAs and all transfers from your registered retirement savings plans (RRSPs) to your FHSAs will reduce your remaining lifetime FHSA limit.
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Example – Participating to the maximum of your FHSA participation room
Julianne opened an FHSA in April 2023. Julianne's FHSA participation room for 2023 was $8,000 because this was the first year she opened an FHSA. Julianne thought that she could contribute $8,000 to her FHSA and transfer $8,000 from her RRSPs to her FHSA.
Julianne checked the Canada Revenue Agency (CRA) web pages and found out that her FHSA participation room of $8,000 applied to her contributions and transfers combined, which were made in the calendar year.
- plus Transfers
- +plus Contributions
- =eqauls $8,000
Julianne was allowed to contribute or transfer a total of $8,000 in 2023.
In August 2023, Julianne decided to transfer $7,500 from her RRSPs to her FHSA. On December 2, 2023, Julianne decided to use her unused FHSA participation room up to that date and contributed $500 to her FHSA.
Julianne's total contributions of $500 and total transfers of $7,500 did not exceed her FHSA participation room for 2023.
- plus Transferred $7,500 from her RRSPs to her FHSA
- +plus Contributed $500 to her FHSA
- =eqauls $8,000
Julianne's FHSA participation room for 2024 is $8,000.
- plus $8,000
- +plus $0 (unused FHSA participation room at the end of 2023)
- =eqauls $8,000
Julianne is allowed to contribute or transfer up to a maximum of $8,000 in 2024.
Unused FHSA participation room
In the year you open your first FHSA, if the total of your contributions to your FHSAs or transfers from your RRSPs to your FHSAs is less than $8,000, you will have unused FHSA participation room at the end of the first year. Generally, you calculate your unused FHSA participation room at the end of the first year as follows:
- plus Your FHSA participation room for the first year
- –minus All new contributions to your FHSAs and transfers from your RRSPs to your FHSAs in the first year
- =equals Your unused FHSA participation room at the end of the first year
You can carry forward up to a maximum of $8,000 of unused FHSA participation room at the end of the year to use in the following year, (subject to the lifetime FHSA limit).
The income earned by your FHSA will not impact your unused FHSA participation room.
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Example – Unused FHSA participation room from one year
In April 2023, Mayumi opened her first FHSA. Mayumi's FHSA participation room in 2023 was $8,000 because this was the first year she opened an FHSA.
Mayumi contributed $2,000 in May 2023.
Mayumi did not contribute to her FHSA or transfer from her RRSPs to her FHSA for the rest of the year.
Since Mayumi used only $2,000 out of her $8,000 FHSA participation room in 2023, her unused FHSA participation room at the end of 2023 is $6,000, which is included in her FHSA participation room for 2024.
- plus $8,000 (FHSA participation room for 2023)
- –plus $2,000 (contributions in 2023)
- =equals $6,000 (unused FHSA participation room at the end of 2023)
Mayumi's FHSA participation room for 2024 is $14,000.
- plus $8,000
- +plus $6,000 (unused FHSA participation room at the end of 2023)
- =equals $14,000
Mayumi decided to use all of her FHSA participation room for 2024 and contributed $14,000 in November 2024.
Since Mayumi used up all her FHSA participation room for 2024, she has no unused FHSA participation room at the end of 2024 to include when she calculates her FHSA participation room for 2025.
- plus $14,000 (FHSA participation room for 2024)
- –plus $14,000 (contributions in 2024)
- =equals $0 (unused FHSA participation room at the end of 2024)
Mayumi's FHSA participation room for 2025 is $8,000.
- plus $8,000
- +plus $0 (unused FHSA participation room at the end of 2024)
- =equals $8,000
Mayumi is allowed to contribute or transfer up to a maximum of $8,000 in 2025.
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Example – Unused FHSA participation room amount from more than one year
Seonho opened an FHSA in October 2023. He did not contribute to his FHSA or transfer from his RRSPs to his FHSA until 2030.
Even though Seonho did not use any of his FHSA participation room from 2023 to 2029, his unused FHSA participation room for 2030 is only $8,000. This is because the maximum amount of unused FHSA participation room that can be carried forward to a subsequent year is $8,000.
Seonho's FHSA participation room for 2030 is $16,000.
- plus $8,000
- +plus $8,000 (unused FHSA participation room at the end of 2029)
- =equals $16,000
Seonho is allowed to contribute or transfer up to a maximum of $16,000 in 2030.
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Example – Income earned by your FHSA does not impact your unused FHSA participation room
Jessica opened her first FHSA on August 21, 2023. Jessica's FHSA participation room for 2023 was $8,000 because this was the first year she opened an FHSA.
Jessica contributed $8,000 to her FHSA in September 2023. She did not make any other contributions to her FHSA or transfers from her RRSPs to her FHSA for the rest of the year. At the end of 2023, the fair market value (FMV) of Jessica's FHSA increased to $8,600.
Jessica was worried that she would only be able to contribute or transfer up to a maximum of $7,400 in 2024. She thought the $600 increase in the value of her FHSA would reduce her FHSA participation room for 2024.
Jessica called the Canada Revenue Agency (CRA) to confirm her FHSA participation room for 2024. The CRA agent told Jessica that the income earned in her FHSA would not reduce her FHSA participation room for 2024 or subsequent years.
Jessica's FHSA participation room for 2024 is $8,000.
- plus $8,000
- +plus $0 (unused FHSA participation room at the end of 2023)
- =equals $8,000
Jessica is allowed to contribute or transfer up to a maximum of $8,000 in 2024.
Exceeding your FHSA participation room
If your contributions and transfers to your FHSAs in the year exceed your FHSA participation room for the year, you may have an excess FHSA amount. For more information about an excess FHSA amount, go to What happens if you contribute or transfer too much to your FHSAs.
If you had an excess FHSA amount and you designated an amount as a designated transfer or a designated withdrawal, the designated amount will restore your remaining lifetime FHSA limit.
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Example – Your excess FHSA amount impacts your FHSA participation room for future years
Karla opened an FHSA on November 14, 2023. Karla's participation room for 2023 was $8,000 because this was the first year she opened an FHSA.
Karla contributed $8,000 to her FHSA on November 15, 2023 and transferred $5,000 from her RRSP to her FHSA on December 2, 2023.
Karla did not make any other contributions or transfers for the remainder of the year.
Karla's total contributions and transfers to her FHSA was $13,000, which was more than her $8,000 FHSA participation room for 2023. This created an excess FHSA amount of $5,000 for December 2023. Karla did not make any efforts to resolve her excess FHSA amount in December 2023.
- plus $8,000 (FHSA participation room for 2023)
- -plus $13,000 ($8,000 contribution + $5,000 transfer)
- =equals -$5,000 (a negative amount means you have an excess FHSA amount)
Karla has to pay a tax of 1% per month on the highest excess FHSA amount in the month of December 2023. She must also file a return to report and pay the tax on her excess FHSA amount. For more information about excess FHSA amount, go to What happens if you contribute or transfer too much to your FHSAs.
- Karla's excess FHSA amount affects her FHSA participation room for 2024.
- Karla's FHSA participation room for 2024 is $3,000
- plus $8,000
- -plus $5,000 (excess FHSA amount at the end of 2023)
- =equals $3,000 (FHSA participation room for 2024)
Participation room applies to all of your FHSAs
Your FHSA participation room for the year applies towards all of the FHSAs you open. This means you can open more than one FHSA, but the total amount you can contribute to all of your FHSAs and transfer from your RRSPs to all of your FHSAs cannot be more than your FHSA participation room for the year.
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Example – Participating in more than one FHSA
Nayeon opened an FHSA with Bank A in May 2023. In June 2023, she opened another FHSA with Bank B. Nayeon's FHSA participation room for 2023 was $8,000 because this was the first year that she opened an FHSA.
Nayeon was not sure whether her FHSA participation room for 2023 applied to all of her existing FHSAs, or if there would be a separate FHSA participation room for each of her FHSAs.
Nayeon checked the Canada Revenue Agency (CRA) web pages and found out that her FHSA participation room applies to all of her existing FHSAs.
The total of Nayeon's contributions to her FHSAs and transfers from her RRSPs to her FHSAs with both Bank A and Bank B cannot be more than $8,000 in 2023.
- plus Bank A (contributions and transfers)
- +plus Bank B (contributions and transfers)
- =equals $8,000
In July 2023, Nayeon decided to use all of her FHSA participation room for the year. She contributed $5,000 to her FHSA with Bank A and contributed $3,000 to her FHSA with Bank B. Nayeon's total contributions of $8,000 in 2023 did not exceed her FHSA participation room for 2023.
- plus $5,000 (contributions to her FHSA with Bank A)
- +plus $3,000 (contributions to her FHSA with Bank B)
- =equals $8,000
Nayeon's FHSA participation room for 2024 is $8,000.
- plus $8,000
- +plus $0 (unused FHSA participation room at the end of 2023)
- =equals $8,000
Nayeon is allowed to contribute or transfer up to a maximum of $8,000 in 2024.
You cannot participate in another individual's FHSA
Only the holder of the FHSA can participate directly in their own FHSAs. In addition, only the holder of the FHSA can claim the FHSA contributions as a tax deduction on their income tax and benefit return.
For more information about tax deductions for your FHSA contributions, go to Tax deductions for FHSA contributions.
Where to find your FHSA participation room
You must fill out Schedule 15 - FHSA Contributions, Transfers and Activities when you file your income tax and benefit return for the year that you opened your first FHSA to let us know that you opened an account, even if you did not contribute to your FHSAs or transfer property from your RRSPs to your FHSAs in that year.
For more information on how to complete your Schedule 15, go to Reporting FHSA activities on your income tax and benefit return.
After you have filed your income tax and benefit return and filled out the Schedule 15 indicating that you have opened your first FHSA, you can find the details about your FHSA participation room for the following year on your:
- Latest notice of assessment
- Latest notice of reassessment
- Form T1028, Your RRSP, HBP, LLP or FHSA information for 2024
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Example – Finding your FHSA participation room on your notice of assessment
Wendy opened her first FHSA in June 2023. Wendy's FHSA participation room for 2023 was $8,000 because this was the first year she opened an FHSA.
Wendy did not make any contributions to her FHSA or transfers from her RRSP to her FHSA in 2023.
When Wendy filed her income tax and benefit return for 2023, she filled out Schedule 15 - FHSA Contributions, Transfers and Activities to let the CRA know that she opened an FHSA in 2023, even though she did not make any transactions in her FHSA in that year.
When Wendy received the notice of assessment for her 2023 income tax and benefit return, she also received a statement which showed that her FHSA participation room for 2024 was $16,000.
If the CRA reassesses your income tax and benefit return, your new FHSA participation room will appear on your notice of reassessment or, in some cases, on Form T1028.
If you do not have a copy of your notice of assessment or reassessment nor a Form T1028, you can find your FHSA participation room by calling the individual tax enquiries line at 1-800-959-8281.
Reporting contributions and transfers in your FHSAs
Your FHSA issuer will give you a T4FHSA slip, First Home Savings Account Statement showing the total amounts you contributed to your FHSAs in box 18, the total amounts you transferred from your RRSPs to your FHSAs in box 32, and the total amounts you transferred from your spousal RRSPs to your FHSAs in box 34.
For more information on reporting your FHSA activities to the CRA, go to Reporting FHSA activities on your income tax and benefit return.
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