To help with your tax planning, here is a breakdown of the 2025 contribution limits for the Registered Retirement Savings Plan (RRSP) and the First Home Savings Account (FHSA).

1. RRSP Contribution Limits (2025)

For the 2025 tax year, your contribution limit is generally the lesser of:

• 18% of your earned income from the previous year (2024).
• The annual maximum of $32,490.

Key Planning Details:

• Carry-Forward: Any unused room from previous years is added to your current limit.
• Pension Adjustments: If you have an employer-sponsored pension (like a RPP or DPSP), your RRSP room will be reduced by your “Pension Adjustment” (PA) from the previous year.
• Over-contribution Buffer: You can over-contribute by up to $2,000 over your lifetime without penalty, but you cannot deduct this excess amount from your taxes.
• 2025 Deadline: To count against your 2025 tax return, contributions must be made by March 2, 2026.

2. FHSA Contribution Limits (2025)

The First Home Savings Account (FHSA) is designed for first-time homebuyers and offers the “best of both worlds”: tax-deductible contributions (like an RRSP) and tax-free withdrawals (like a TFSA).

• Annual Limit: $8,000
• Lifetime Limit: $40,000

Key Planning Details:

• Carry-Forward Rule: You can carry forward up to $8,000 of unused room to the following year. This means the maximum you can contribute in any single year is $16,000 (if you had $8k of unused room from the previous year).
• Room Generation: Unlike an RRSP, you must open the account to start generating contribution room. If you don’t open an account in 2025, you won’t get any carry-forward room for 2026.
• Transfers: You can transfer funds from an RRSP to an FHSA tax-free, but this uses up your FHSA contribution room and does not give you a new tax deduction.

Summary Table

Plan Type	2025 Annual Limit	Lifetime Limit	Carry-Forward?
RRSP	Lesser of 18% of income or $32,490	No limit	Yes, indefinite
FHSA	$8,000	$40,000	Yes, up to $8,000
TFSA	$7,000	Varies by eligibility	Yes, indefinite

Pro Tip: Your exact, personalized limits for the RRSP (and often the FHSA) are listed on your most recent Notice of Assessment (NOA) from the CRA. You can also find them instantly by logging into CRA My Account.