FHSA calculator: room & tax savings
The First Home Savings Account is the only registered account that gives you a tax deduction and a tax-free withdrawal. Enter the year you opened your FHSA and what you've contributed to see your 2026 room, your tax refund, and what it could grow to tax-free toward a first home.
Your numbers
Project tax-free growth
Your FHSA room year by year
Room added each year since you opened the account, and your running total toward the $40,000 lifetime cap.
| Year | Room added | Cumulative room |
|---|---|---|
| 2023 | $8,000 | $8,000 |
| 2024 | $8,000 | $16,000 |
| 2025 | $8,000 | $24,000 |
| 2026 | $8,000 | $32,000 |
How the FHSA works
The First Home Savings Account, launched in 2023, is built specifically to help Canadians save for a first home. It's the only registered account that combines two tax breaks: contributions are tax-deductible like an RRSP, and qualifying withdrawals for a home are completely tax-free like a TFSA. You get a refund going in, tax-free growth along the way, and a tax-free payout coming out.
Room = $8,000 for each year your account is open − contributions (max $40,000 lifetime)
- $8,000 per year, up to a $40,000 lifetime limit.
- Deductible going in, tax-free coming out — the best of RRSP and TFSA.
- Room starts when you open the account, not when you turn 18.
A worked example
Suppose you opened your FHSA in 2023 and have contributed $8,000 so far. By 2026 you've accrued $32,000 of room (four years × $8,000), so your available room is $24,000. At a 30% marginal rate, your $8,000 of contributions already refunded about $2,400 in tax. Top up that $24,000 of room and let it compound tax-free at 6% for five years, and it could grow to over $32,000 — every dollar of which comes out tax-free for your home. Change the numbers above to fit your situation.
Carry-forward is capped at $8,000
Unlike the TFSA, FHSA room does not pile up indefinitely. You can carry forward only $8,000 of unused room per year, so the most you can ever contribute in a single year is $16,000. If you open an account but contribute nothing for years, your room tops out at $16,000 — not the full $40,000. This calculator shows your accrued room assuming carry-forward; to actually reach $40,000 you need to contribute steadily over five years.
No home? Roll it into your RRSP
If you don't end up buying a qualifying home, you can transfer your entire FHSA — contributions and growth — into your RRSP or RRIF tax-free, and it doesn't use any of your RRSP room. That makes opening an FHSA nearly risk-free even if you're unsure about buying. You have up to 15 years (or until age 71) to decide.
FHSA vs other accounts
Which account first?
- FHSA — fill it first if a first home is a goal; it's deductible and tax-free.
- TFSA — flexible, tax-free; see the TFSA room calculator.
- RRSP — bigger deduction at high incomes; RRSP refund calculator.
Make it grow
- See compounding in action with the compound interest calculator.
- Stack the FHSA with the RRSP Home Buyers' Plan for a bigger down payment.
- Mind fund fees — the MER calculator shows their drag.
What this calculator assumes
It assumes you've been eligible since the year you opened your FHSA and that unused room carried forward (subject to the $8,000 annual cap noted above). The tax refund uses the single marginal rate you enter — for a precise, province-by-province figure use the RRSP tax refund calculator, since FHSA deductions work the same way. Always confirm your exact room in CRA My Account.
Frequently asked questions
How much can I contribute to an FHSA?
The FHSA limit is $8,000 per year, up to a $40,000 lifetime maximum. Unused room carries forward — but only up to $8,000 per year, so the most you can contribute in any single year is $16,000 ($8,000 current room plus $8,000 carried forward). Room only starts accumulating the year you open your first FHSA, not the year you turn 18.
When does my FHSA contribution room start?
Unlike the TFSA or RRSP, FHSA room does not build up automatically. It starts the year you open your first FHSA, with $8,000 of room that year. If you open an account but don't contribute, you carry forward a maximum of $8,000 — so an idle account tops out at $16,000 of room, not the full $40,000. To reach $40,000 you need to contribute over at least five years.
Is an FHSA tax-deductible like an RRSP?
Yes — FHSA contributions are tax-deductible, just like an RRSP, so they lower your taxable income and generate a refund at your marginal rate. Unlike an RRSP, you can also carry the deduction forward to a higher-income year. Use our RRSP tax refund calculator to see how marginal rates translate into refunds.
Are FHSA withdrawals taxed?
No — a qualifying withdrawal to buy your first home is completely tax-free, including all the growth. That is what makes the FHSA so powerful: it combines the RRSP's upfront deduction with the TFSA's tax-free withdrawal. Non-qualifying withdrawals (not for a home) are taxed as income, though you can transfer the balance to an RRSP or RRIF tax-free instead.
Who is eligible to open an FHSA?
You must be a Canadian resident, at least 18 (or the age of majority in your province), and a first-time home buyer — meaning you did not live in a home you or your spouse owned in the current year or the previous four calendar years. Once opened, the account can stay open for a maximum of 15 years, or until the end of the year you turn 71, whichever comes first.
What is the FHSA lifetime limit?
The lifetime contribution limit is $40,000. Combined with investment growth, a fully funded FHSA can hold considerably more than $40,000 by the time you buy — and the entire qualifying withdrawal comes out tax-free. The $40,000 cap is per person, so a couple buying together can pool up to $80,000 plus growth.
Can I use both the FHSA and the Home Buyers' Plan?
Yes. As of 2023 you can use the FHSA and the RRSP Home Buyers' Plan together for the same home purchase — you no longer have to choose. The FHSA withdrawal is tax-free and never repaid, while the HBP is an interest-free loan from your RRSP that you repay over 15 years. Stacking both can give a much larger down payment.
What if I never buy a home?
If you don't buy a qualifying home, you can transfer your FHSA to your RRSP or RRIF tax-free, and it does not use up your RRSP contribution room — a valuable bonus. Alternatively, you can withdraw the money as a taxable non-qualifying withdrawal. You have until the end of your 15th year (or age 71) to decide.
Should I use an FHSA, RRSP, or TFSA?
If buying a first home is a goal, the FHSA usually wins because it is the only account giving both a deduction and a tax-free withdrawal. Beyond that, compare with our TFSA contribution room calculator and RRSP vs TFSA guide. Many people fill the FHSA first, then split the rest between RRSP and TFSA.
Educational tool, not financial or tax advice. FHSA rules reflect the federal program as of 2026 ($8,000 annual / $40,000 lifetime limits). Eligibility, room, and the carry-forward cap depend on your personal situation and are shown in CRA My Account — verify with the CRA or a financial professional before contributing.