Savings · FHSA
FHSA Calculator
See how your First Home Savings Account grows and the tax refund your contributions create.
Max $8,000/yr up to $40,000 lifetime limit.
Determines the size of the tax refunds you'll get back on contributions.
Deposit $0
How the FHSA Works (2026)
The First Home Savings Account combines the best of an RRSP and a TFSA for first-time buyers. Contributions are tax-deductible like an RRSP, and qualifying withdrawals to buy your first home are tax-free like a TFSA.
| Rule | 2026 limit |
|---|---|
| Annual contribution room | $8,000 |
| Lifetime contribution limit | $40,000 |
| Unused room carried forward | Up to $8,000 (so up to $16,000 in one year) |
| Maximum time the account can stay open | 15 years, or until the end of the year you turn 71 |
Room only starts building once you open an account, so opening one early (even with $0) starts your carry-forward.
Worked Example
You contribute $8,000 a year and your marginal tax rate is 30%. Each contribution reduces your tax by about $2,400. After five years you have contributed the $40,000 maximum and received roughly $12,000 in tax refunds, and all investment growth comes out tax-free when you buy your home.
Who Can Open an FHSA
- A Canadian resident aged 18 or older (up to 71).
- A first-time home buyer: you did not live in a home that you or your spouse or common-law partner owned at any time in the current year or the previous four calendar years.
- If you don’t buy a home, you can transfer the balance to your RRSP or RRIF tax-free, without using RRSP room.
- You can use the FHSA and the RRSP Home Buyers’ Plan (up to $60,000) for the same purchase.
Advertisement
Frequently Asked Questions
What is the FHSA contribution limit for 2026?
$8,000 per year, up to $40,000 over your lifetime. Up to $8,000 of unused room carries forward, so you could contribute as much as $16,000 in one year.
Are FHSA contributions tax-deductible?
Yes. Contributions are deducted from your income like RRSP contributions. You can also carry the deduction forward to a later, higher-income year.
Can I use both the FHSA and the Home Buyers’ Plan?
Yes. You can make a qualifying FHSA withdrawal and an RRSP Home Buyers’ Plan withdrawal (up to $60,000) for the same home.
What happens to my FHSA if I don’t buy a home?
You can transfer the money to your RRSP or RRIF tax-free without using RRSP contribution room. Otherwise withdrawals are taxable. The account must be closed after 15 years or at the end of the year you turn 71.
Who counts as a first-time home buyer for the FHSA?
Someone who did not live in a home owned by them or their spouse or common-law partner at any time in the current year or the previous four calendar years.
Rules as of September 2026. Source: Canada Revenue Agency — First Home Savings Account. This tool gives estimates, not tax advice.
Keep growing your savings
Advertisement