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
Generally, 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 is $8,000.
To calculate your FHSA participation room for the following years, go to How to calculate your FHSA participation room.
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Example – Participating to the maximum of your FHSA participation room
Julianne opened an FHSA in April 2024. Julianne's FHSA participation room for 2024 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 registered retirement savings plans (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.
- Transfers
- +plus Contributions
- =eqauls $8,000
Julianne was allowed to contribute or transfer a total of $8,000 in 2024.
In August 2024, Julianne decided to transfer $7,500 from her RRSPs to her FHSA. On December 2, 2024, Julianne 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 2024.
- Transferred $7,500 from her RRSPs to her FHSA
- +plus Contributed $500 to her FHSA
- =eqauls $8,000
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 2024. In June 2024, she opened another FHSA with Bank B. Nayeon's FHSA participation room for 2024 was $8,000 because this was the first year that she opened an FHSA.
Nayeon was not sure whether her FHSA participation room for 2024 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 2024.
- Bank A (contributions and transfers)
- +plus Bank B (contributions and transfers)
- =equals $8,000
In July 2024, 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 2024 did not exceed her FHSA participation room for 2024.
- $5,000 (contributions to her FHSA with Bank A)
- +plus $3,000 (contributions to her FHSA with Bank B)
- =eqauls $8,000
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.
Income earned by your FHSA does not impact your FHSA participation room
Generally, any income earned in the FHSA (for example, investment income and capital gains) will not count towards your FHSA participation room.
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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, 2024. Jessica's FHSA participation room for 2024 was $8,000 because this was the first year she opened an FHSA.
Jessica contributed $8,000 to her FHSA in September 2024. 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 2024, the fair market value (FMV) of Jessica's FHSA increased to $8,600.
Jessica was worried that she had an excess FHSA amount at the end of 2024 because the total value of her account at the end of the year was more than her FHSA participation room for 2024. Jessica called the Canada Revenue Agency (CRA) to confirm if she has an excess FHSA amount in 2024. The CRA agent told Jessica that the income earned in her FHSA did not have an impact on her FHSA participation room. Jessica’s total contributions of $8,000 did not exceed her FHSA participation room for 2024.
- $0 (transfers)
- +plus $8,000 (contributions)
- =eqauls $8,000
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.
If you have an excess FHSA amount at the end of the year, it will have an impact on your FHSA participation room for the following year. For more information on how to calculate your FHSA participation room for the following years, go to How to calculate your FHSA participation room.
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Example – Your excess FHSA amount impacts your FHSA participation room for future years
Karla opened an FHSA on November 14, 2024. Karla's participation room for 2024 was $8,000 because this was the first year she opened an FHSA.
Karla contributed $8,000 to her FHSA on November 15, 2024 and transferred $5,000 from her RRSP to her FHSA on December 2, 2024.
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 2024. This created an excess FHSA amount of $5,000 for December 2024. Karla did not make any efforts to resolve her excess FHSA amount in December 2024. For more information on how to calculate excess FHSA amounts, go to How to calculate your excess FHSA amounts.
- $0 (excess FHSA amount at the end of 2023)
- +plus $13,000 (contributions and transfers to the FHSA up to December 2, 2024)
- +plus $8,000 ($8,000 + $0 FHSA participation room carryforward for 2024)
- =eqauls $5,000 (Karla’s excess FHSA amount as of December 2, 2024)
Karla has to pay a tax of 1% per month on the highest excess FHSA amount in the month of December 2024. She must also file Form RC728, First Home Savings Account (FHSA) Return, and Form RC728-SCH-A Schedule A, Excess FHSA Amounts, to report and pay the tax on her excess FHSA amounts. 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 of $5,000 will have an impact in calculating her FHSA participation room for 2025.
Karla's FHSA participation room for 2024 is $3,000. For more information on how to calculate your FHSA participation room for the following years, go to How to calculate your FHSA participation room.
- $0 (unused FHSA re-participation room at the end of 2024)
- +plus $3,000 ($8,000 + $0 FHSA participation room carryforward - $5,000 excess FHSA amount at the end of 2024)
- =eqauls $3,000 (FHSA participation room for 2025)
How to calculate your FHSA participation room
In the first year that you open your FHSA, your FHSA participation room is $8,000.
Your FHSA participation room for the following years is calculated as follows:
Your unused FHSA re-participation room at the end of the prior year
plus the lesser of:
a) $8,000
plus your FHSA participation room carryforward
minus your excess FHSA amount at the end of the prior year
*if the result of this calculation is negative, use $0
Or
b) $40,000
minus all of your contributions to your FHSAs and transfers from your RRSPs to your FHSAs for all prior years up to the end of the prior year
plus all of your designated amounts for all prior years up to the end of the prior year
plus the total of the following calculation for each prior year: the portion of your taxable withdrawals from your FHSAs or the amounts deemed received by you on the cessation of your FHSAs that would have reduced or eliminated your excess FHSA amount in the particular year
plus your total FHSA re-participation room used up to the end of the prior year
plus your excess FHSA amount at the end of the prior year
*if the result of this calculation is negative, use $0
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Example – Calculating your FHSA participation room
Julie opened her first FHSA in March 2024. Julie’s FHSA participation room for 2024 is $8,000 because this is the first year she opened her FHSA
Julie contributed $10,000 to her FHSA in September 2024.
Julie’s total contributions and transfers to her FHSAs was $10,000, which was more than her FHSA participation room for 2024. This created an excess FHSA amount of $2,000 in September 2024. For more information on how to calculate excess FHSA amounts, go to How to calculate your excess FHSA amount.
- $10,000 (contribution in September 2024)
- –minus $8,000 ($8,000 + $0 FHSA participation room carryforward for 2024)
- =eqauls $2000 (excess FHSA amount as of September 2024)
Julie found out about her excess FHSA amounts in November 2024. In an effort to resolve her excess FHSA amount, Julie made a taxable withdrawal of $5,000 in November 2024.
Julie’s taxable withdrawal in November 2024 eliminated her excess FHSA amount in that year.
Julie did not make any other transactions in her FHSA for the remainder of 2024.
Julie has to pay a tax of 1% per month on the highest excess FHSA amount from the months of September to November. She must also file Form RC728, First Home Savings Account (FHSA) Return, and Form RC728-SCH-A Schedule A, Excess FHSA Amounts, 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.
In 2025, Julie’s FHSA participation room was $11,000.
- $3,000 (unused FHSA re-participation room at the end of 2024)
- +plus $8,000 ($8,000 + $0 FHSA participation room carryforward - $0 excess FHSA amount at the end of 2024)
- =eqauls $11,000 (FHSA participation room for 2025)
In order to properly calculate your FHSA participation room for years following the year you open your first FHSA, you have to know some of the terms that are used in the calculation. Refer to the sections below to understand what the different variables mean and how to calculate them.
FHSA Re-participation room
Generally, your FHSA re-participation room is the portion of your taxable withdrawals from your FHSAs or the amounts deemed received by you when your accounts lose their status as FHSAs that did not reduce or eliminate your excess FHSA amount.
Your unused FHSA re-participation room at the end of the prior year is calculated as follows:
- plus The total of the following calculation for each prior year: the portion of your taxable withdrawals from your FHSAs in the particular year or the amounts deemed received by you on the cessation of your FHSAs that did not reduce or eliminate your excess FHSA amount in the particular year
- –minus your total FHSA re-participation room used up to the end of the prior year
The contributions you make to your FHSAs and the transfers from your RRSPs to your FHSAs may reduce your unused FHSA re-participation room. The portion of your unused FHSA re-participation room that you used up by making contributions or transfers to your FHSAs is called the total FHSA re-participation room used.
Your total FHSA re-participation room used up to the end of the prior year is the total of the following calculation for each prior year:
The lesser of:
a) Your unused FHSA re-participation room at the end of the prior year to that particular year
b) All of your contributions or transfers to your FHSAs in that particular year which exceed the following amount:
- plus Your FHSA participation room for that particular year
- –minus Your unused FHSA re-participation room at the end of the prior year to that particular year
For more information about taxable withdrawals, go to Withdrawals and transfers out of your FHSAs.
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Example – Calculating your FHSA re-participation room (used and unused)
Tony opened his first FHSA in February 2024. Tony’s FHSA participation room for 2024 is $8,000 because this is the first year he opened an FHSA.
Tony contributed $14,000 to his FHSA in March 2024.
Tony’s total contributions and transfers to his FHSAs was $14,000, which was more than his FHSA participation room for 2024. This created an excess FHSA amount of $6,000 in March 2024. For more information on how to calculate excess FHSA amounts, go to How to calculate your excess FHSA amount.
- plus $14,000 (contributions up to March 2024)
- –minus $8,000 ($8,000 + $0 FHSA participation room carryforward for 2024)
- =eqauls $6,000 (excess FHSA amount as of March 2024)
Tony found out about his excess FHSA amounts in June 2024. In an effort to resolve his excess FHSA amounts, Tony made a taxable withdrawal of $7,500 in July 2024.
Tony did not make any other transactions in his FHSA for the remainder of 2024.
Tony’s taxable withdrawal in July 2024 eliminated his excess FHSA amount as of July 2024.
- plus $6,000 (excess FHSA amount up to July 2024)
- –minus $7,500 (taxable withdrawals up to July 2024)
- =eqauls -$1,500 (0 or a negative amount means that the excess FHSA amount is eliminated)
Tony has to pay a tax of 1% per month on the highest excess FHSA amount for the months of March to July. He must also file Form RC728, First Home Savings Account (FHSA) Return, and Form RC728-SCH-A Schedule A, Excess FHSA Amounts, to report and pay the tax on his excess FHSA amounts. For more information about excess FHSA amount, go to What happens if you contribute or transfer too much to your FHSAs.
Tony had an excess FHSA amount of $6,000 and when he made a taxable withdrawal of $7,500, the withdrawal was $1,500 more than was needed to eliminate the excess contribution.
Tony’s FHSA re-participation room at the end of 2024 was $1,500.
- plus $7,500 (taxable withdrawal)
- –minus $6,000 (excess FHSA amount)
- =eqauls $1,500 (portion of taxable withdrawals or amounts deemed received on FHSA cessation that did not reduce or eliminate the excess FHSA amount)
- Tony’s unused FHSA re-participation room at the end of 2024 = $1,500
In 2025, Tony’s FHSA participation room was $9,500.
- plus $1,500 (unused FHSA re-participation room at the end of 2024)
- +plus $8,000 ($8,000 + $0 FHSA participation room carryforward - $0 excess FHSA amount at the end of 2024)
- =eqauls $9,500 (FHSA participation room for 2025)
Tony decided to contribute $9,000 to his FHSA in August 2025. He did not make any other transactions in his FHSA for the remainder of 2025.
Some of the contributions Tony made to his FHSA in 2025 will reduce his total FHSA re-participation room.
Tony’s total FHSA re-participation room used at the end of 2025 is $1,000.
Lesser of:
a) $1,500 (unused FHSA re-participation room at the end of 2024)
b) $1,000 (contributions or transfers in 2025 which exceeded the following amount):- plus $9,500 (FHSA participation room for 2025)
- –minus $1,500 (unused FHSA re-participation room at the end of 2024)
- =eqauls $8,000 (FHSA participation room for 2025)
Tony’s total FHSA re-participation room used at the end of 2025 = $1,000
Tony’s unused FHSA re-participation room at the end of 2025 is $500.
- plus $1,500 (portion of taxable withdrawals or amounts deemed received on FHSA cessation that did not reduce or eliminate the excess FHSA amount)
- –minus $1,000 (total FHSA re-participation room used at the end of 2025)
- =eqauls $500 (unused FHSA re-participation room at the end of 2025)
Tony’s unused FHSA re-participation room at the end of 2025 = $500
FHSA participation room carryforward
Your FHSA participation room carryforward is the amount you are permitted to carryforward for the purposes of your FHSA participation room and the calculation of your excess FHSA amounts.
This is different from FHSA carryforward which is used to calculate your annual FHSA limit and how much you can claim as FHSA deductions.
Your FHSA participation room carryforward is:
- in the year you open your first FHSA = $0
- in the subsequent years after you open your FHSA, the lesser of:
a) $8,000
b) The amount calculated as follows:
- plus $8,000
- +plus your FHSA participation room carryforward for the prior year
- –minus your excess FHSA amount at the end of the second prior year
- –minus all of your contributions to your FHSAs and transfers from your RRSPs to your FHSAs for the prior year
- +plus all your designated amounts for the prior year
- +plus the portion of your taxable withdrawals from your FHSAs or amounts deemed received by you on the cessation of your FHSAs that reduced or eliminated your excess FHSA amount for the prior year
- * if the result of this calculation is negative, use $0
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Example – Calculating your FHSA participation room carryforward
Vivi opened an FHSA in April 2024. Vivi’s FHSA participation room for 2024 was $8,000 because this was the first year she opened an FHSA.
Vivi contributed $6,000 to her FHSA on June 5, 2024.
Vivi did not contribute to her FHSA or transfer from her RRSPs to her FHSA for the rest of the year.
Vivi’s FHSA participation room carryforward for 2025 is the lesser of:
- $8,000
- The amount calculated as follows:
- plus $8,000
- +plus $0 (Vivi’s FHSA participation room carryforward for 2024)
- –minus $0 (Vivi’s excess FHSA amount in 2023 (second prior year))
- –minus $6,000 (Vivi’s total contributions and transfers to her FHSA in 2024)
- +plus $0 (Vivi’s designated amounts in 2024)
- +plus $0 (Vivi’s taxable withdrawals or amounts deemed received by her on FHSA cessation that reduced or eliminated her excess FHSA amount in 2024)
- =eqauls $2,000
Based on the calculation above, Vivi's FHSA participation room carryforward for 2025 is $2,000.
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 the CRA 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 2025
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Example – Finding your FHSA participation room on your notice of assessment
Wendy opened her first FHSA in June 2024. Wendy's FHSA participation room for 2024 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 2024.
When Wendy filed her income tax and benefit return for 2024, she filled out Schedule 15 - FHSA Contributions, Transfers and Activities to let the CRA know that she opened an FHSA in 2024, even though she did not make any transactions in her FHSA in that year.
When Wendy received the notice of assessment for her 2024 income tax and benefit return, she also received a statement which showed that her FHSA participation room for 2025 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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