What is the FHSA contribution limit in 2026?

$8,000 per year, with a $40,000 lifetime maximum. Unused room from previous years can carry forward, but only up to $8,000 — so your maximum in any single year is $16,000 if you had a full unused $8,000 from the prior year.

Who qualifies for an FHSA?

You must be a Canadian resident, 18-71 years old, and a first-time home buyer (meaning you and your spouse must not have owned a home you lived in during the current or 4 preceding calendar years). The home must be in Canada and intended as your principal residence.

Can I use FHSA and the RRSP Home Buyers’ Plan together?

Yes. As of 2026 you can combine an FHSA withdrawal with up to $60,000 from the RRSP Home Buyers’ Plan for the same first-home purchase — potentially $100,000+ in tax-advantaged down-payment funds depending on your contribution history.

What if I do not end up buying a home?

If you do not use the FHSA for a qualifying home purchase by the end of the 15th year after opening it, or by age 71 (whichever comes first), the balance must be transferred to an RRSP or RRIF tax-deferred, or withdrawn as fully taxable income.

Is FHSA better than RRSP for saving for a home?

Generally yes. FHSA gives you the same upfront tax deduction as RRSP, but the withdrawal is completely tax-free instead of taxed as income (or requiring repayment over 15 years like the RRSP Home Buyers’ Plan). For first-time buyers, FHSA wins unless you specifically need the RRSP room for retirement.

Canadian Calculators

FHSA Calculator

Calculate your First Home Savings Account tax refunds and investment growth. Find out exactly what your FHSA will be worth at home purchase.

Annual income ($CAD)

Province

Annual contribution ($CAD, max $8,000)

Lifetime limit: $40,000 • Carryforward: up to $8,000

Current FHSA balance ($CAD)

Years until home purchase 5 yr

115

Expected annual return 5%

1%15%

Your FHSA advantage

Marginal tax rate: — • Effective cost of $8,000 contribution: —

Total Contributions

—

Tax Refunds Received

—

Investment Growth

—

Total FHSA at Withdrawal

—

100% tax-free for home purchase

FHSA Growth — Contributions + Growth + Tax Refunds

The First Home Savings Account (FHSA) is one of the best deals in Canadian personal finance. It combines the upfront tax deduction of an RRSP with the tax-free growth and withdrawal of a TFSA — but only for first-time homebuyers. If you qualify, contributing to an FHSA before buying a home is almost always the right move.

This calculator shows you exactly how much income tax you save with each contribution based on your province and income, how your investments grow tax-free over time, and your total down-payment power when you withdraw to buy your first home — with no tax owed on either contributions or growth.

How it works

Enter your annual income, province, planned annual FHSA contribution, expected investment return, and target home-purchase year. The calculator applies 2026 federal and provincial marginal tax rates to compute your annual tax refund — the deduction effectively pays for part of the contribution itself.

Contributions grow tax-free at your chosen investment return rate. When you make a qualifying withdrawal for your first home purchase, both the original contributions and all accumulated growth come out completely tax-free — no taxes ever paid on FHSA money used for a home. This is the only account in Canada that gets the tax deduction and the tax-free withdrawal.

Frequently asked questions

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