The First Home Savings Account (FHSA) is a registered savings account introduced in Canada in 2023. It allows first-time homebuyers to save up to $40,000 tax-free for their first home, with annual contribution limits of $8,000. Contributions are tax-deductible and withdrawals for home purchases are tax-free.

What are FHSA contribution limits?

The FHSA has an annual contribution limit of $8,000 and a lifetime contribution limit of $40,000. Unused contribution room can be carried forward to the next year, up to a maximum of $8,000. This means you could contribute up to $16,000 in a year if you have carry-forward room.

Who is eligible for an FHSA?

To open an FHSA, you must be a Canadian resident, at least 18 years old, and a first-time home buyer (haven't owned a home in the current year or the previous 4 calendar years). The account must be open for at least 1 year before making a qualifying withdrawal.

What are the tax benefits of an FHSA?

The FHSA combines the best features of RRSPs and TFSAs. Contributions are tax-deductible (like an RRSP), reducing your taxable income. Investment growth is tax-free, and qualifying withdrawals for a home purchase are also tax-free (like a TFSA). This provides a double tax advantage.

FHSA Calculator Canada

Calculate your First Home Savings Account growth and tax savings for your home purchase.

First Home Savings Account Calculator

See how much you can save tax-free for your first home with an FHSA

Contribution Details

Annual Contribution ($) Maximum $8,000 per year

Years to Save FHSA can stay open for 15 years

Initial Deposit ($) Opening deposit (counts toward year 1)

Carry Forward Room ($) Unused room from previous year

Investment & Tax Details

Expected Return (%) Annual investment return

Marginal Tax Rate (%) Federal marginal tax bracket

Provincial Tax Rate (%) Your province's tax rate

Home Purchase Goal (Optional)

Target Home Price ($) Price of home you want to buy

Target Down Payment (%) Percentage for down payment

FHSA Savings Summary

Total FHSA Value

After 5 years

Total Contributions

Your deposits

Investment Growth

Tax-free earnings

Total Tax Savings

From deductions

FHSA Balance Breakdown

Contributions (0%)

Growth (0%)

FHSA Details

Annual Contribution $0

Savings Period 0 years

Total Contributions $0

Investment Return 0%

                    Investment Growth (Tax-Free)
                    $0
                

Combined Tax Rate 0%

Tax Savings from Deductions $0

Down Payment Progress

Target Home Price $0

Target Down Payment $0

                    FHSA Covers
                    0%
                

Additional Savings Needed $0

FHSA vs Regular Savings

FHSA Total Value $0

+ Tax Refunds Received $0

                    Effective Total Benefit
                    $0
                

Regular Taxable Account $0

FHSA Advantage $0

Year-by-Year FHSA Growth

Year	Contribution	Growth	Balance	Tax Savings

FHSA Contribution Limits

Year	Annual Limit	Carry Forward	Max Contribution	Lifetime Used	Lifetime Remaining

FHSA Tax Benefit

Contribution × Tax Rate = Tax Refund | Growth is 100% Tax-Free

Understanding the FHSA

What is an FHSA?

The First Home Savings Account (FHSA) is a registered account that helps Canadians save for their first home. It combines the best features of RRSPs (tax-deductible contributions) and TFSAs (tax-free withdrawals), making it the most tax-efficient way to save for a home.

FHSA Contribution Rules

Annual Limit: $8,000 per year
Lifetime Limit: $40,000 total
Carry Forward: Up to $8,000 unused room
Maximum in One Year: $16,000 with carry forward
Account Duration: Up to 15 years

Eligibility Requirements

Canadian resident
At least 18 years old
First-time home buyer
Haven't owned a home in current or past 4 years
Account open for at least 1 year before withdrawal

FHSA Tax Benefits

Contributions: 100% tax-deductible
Growth: Completely tax-free
Withdrawals: Tax-free for home purchase
Can combine with HBP (RRSP) for larger down payment
Unused funds can transfer to RRSP