Can You Carry Forward Your FHSA Limit?

As a CPA in Ottawa, I’ve had a lot of clients ask me the same thing: "If I don’t use my full FHSA contribution this year, does it carry forward?" And I see this question on Reddit almost every month.

The answer is: Yes, your FHSA limit does carry-forward, but only up to $8,000 per year. That’s the key.

You Can Carry Forward, But Only $8,000 Per Year

Once you open a First Home Savings Account (FHSA), any unused contribution room can be carried forward to future years. So if you open one in 2025 but don’t put in the full $8,000, the unused amount rolls over.

Let’s say you contribute $2,000 in 2025. In 2026, you’d have:

• $6,000 carried forward from 2025
• $8,000 of new room for 2026
• But your max contribution for 2026 is still $8,000

This part trips people up: You can’t contribute more than $8,000 in a single year, even if your carryforward adds up to more. The extra room just sits there, and you can chip away at it each year.

Example

Let’s say you open an FHSA in 2025 and contribute nothing.

• In 2026: You now have $8,000 of room
• In 2027: You get another $8,000 of new room, for a total of $16,000
• But you can still only contribute $8,000 in 2027

So yes, you can carry forward unused room, but your contribution limit per year stays capped at $8,000.

You Have to Open the Account to Start Earning Room

This is another common mistake. People ask me "can you backdate your FHSA room or balance", the answr is: no, yYou can’t “backdate” FHSA room.

If you don’t open your FHSA until 2026, you don’t get room for 2025. Contribution room only starts accumulating after the account is opened.

Lifetime Limit Still Applies

Even with carryforward, the total you can ever contribute to an FHSA is $40,000. So if you wait five years to contribute, you haven’t magically earned $40K of space all at once. You’ll still have to chip away at it, $8K max per year.

Reddit’s Talking About It Too

Check this discussion:
Reddit - Can you carry forward FHSA room?

A lot of people are still confused about how much you can actually contribute when carryforward is involved. The rule is simple: contribution cap stays $8,000 per year, no matter how much room you have carried forward.

TL;DR

• Yes, unused FHSA room carries forward
• You must open the account to start earning contribution room
• You can carry forward unused room, but you can’t contribute more than $8,000 in a single calendar year
• The lifetime cap is still $40,000

Got questions about how to optimize your FHSA contributions or how it works with your RRSP and TFSA? I’ve helped plenty of first-time buyers in Ottawa figure out a tax-smart way to plan for their down payment. You don’t need to navigate this alone.

Let me know if you want help building a strategy.

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This is not legally binding tax advice. This is educational analysis. Say hello if you need help.

hello@taxesmadesimple.ca

WhatsApp - 613.600.4194

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