FHSA Calculator Canada — Free 2026
Calculate your First Home Savings Account contribution room, annual tax savings, and projected tax-free balance for a down payment. The FHSA gives you an $8,000/year tax deduction plus tax-free growth — Canada's most powerful account for first-time buyers.
How It Works
- Open and contribute — You can contribute up to $8,000/year starting from the year you open your FHSA. Unused room carries forward up to $8,000 extra in the following year.
- Claim the tax deduction — Like an RRSP, FHSA contributions reduce your taxable income dollar for dollar. At a 33% marginal rate, an $8,000 contribution saves $2,640 in income tax.
- Invest and grow tax-free — Money inside the FHSA grows completely tax-free. Eligible investments include GICs, mutual funds, ETFs, and stocks — the same as a TFSA or RRSP.
- Withdraw for your first home — When you purchase a qualifying home, withdraw your entire FHSA balance tax-free. Unlike the RRSP HBP, there is no repayment requirement.
FHSA vs TFSA vs RRSP: Which is Best for a Down Payment?
The First Home Savings Account, launched in April 2023, is designed specifically to help Canadians save for a first home. It uniquely combines the tax benefits of both the TFSA and the RRSP, making it the most powerful registered account for this purpose.
Feature Comparison
| Feature | FHSA | TFSA | RRSP HBP |
|---|---|---|---|
| Annual limit | $8,000 | $7,000 | No annual limit |
| Lifetime limit | $40,000 | Unlimited | $35,000 withdrawal |
| Contributions tax-deductible? | Yes | No | Yes |
| Withdrawals tax-free (home)? | Yes | Yes | Must repay over 15 yrs |
| Time limit | 15 years or age 71 | None | None |
| If not used for home? | Transfer to RRSP/RRIF | Keep investing | No impact |
FHSA Contribution Room Rules
Your FHSA contribution room accumulates from the year you open the account — not from birth or age 18 like the TFSA. You gain $8,000 of room each year on January 1, starting from your opening year. If you don't contribute the full $8,000 in a year, the unused amount carries forward to the next year, but the carry-forward is capped at $8,000. This means the most you can ever contribute in a single year is $16,000 (current year's $8,000 plus $8,000 in carry-forward).
The lifetime cap of $40,000 applies regardless of carry-forward rules, so you can never contribute more than $40,000 total across all years.
Combining FHSA and RRSP Home Buyers' Plan
You can use both programs together on the same home purchase. The maximum tax-free down payment pool per person is $75,000: $40,000 from the FHSA (no repayment) plus $35,000 from the RRSP Home Buyers' Plan (repayable over 15 years). For a couple, that is up to $150,000 combined.
What If I Never Buy a Home?
The FHSA is a no-lose proposition. If you don't buy a home within 15 years (or by the year you turn 71), you can transfer the entire FHSA balance — including all tax-free growth — directly to your RRSP or RRIF without affecting your existing RRSP contribution room. Your savings continue to compound in a registered account. You never lose the tax deductions you claimed on contributions.
Sources: CRA — First Home Savings Account · FHSA Contribution Rules
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