FHSA Calculator
Plan your First Home Savings Account (FHSA) for your first home purchase. Contributions are tax-deductible and growth is tax-free -- the best of both RRSP and TFSA. Uses current Canadian FHSA limits for accurate projections.
FHSA Contributions
Annual limit: $8,000 | Lifetime limit: $40,000
Used to calculate your marginal tax rate for deduction savings
Settings
FHSA max lifetime: 15 years
Home Purchase Power
$44,415
after 5 years
Annual Tax Savings
$2,372
From tax-deductible contributions (like RRSP)
What is an FHSA?
The First Home Savings Account (FHSA) is a registered savings account introduced by the Canadian government in 2023 to help first-time home buyers save for a down payment. It combines the best features of both the RRSP and the TFSA: contributions are tax-deductible (reducing your taxable income like an RRSP) and withdrawals for a qualifying home purchase are completely tax-free (like a TFSA).
FHSA Contribution Limits
- Annual limit: $8,000 per year
- Lifetime limit: $40,000 total contributions
- Carry-forward: Up to $8,000 of unused annual room carries forward to the next year (maximum contribution in any single year is $16,000 with carry-forward)
- Account lifetime: Maximum 15 years from opening, or until age 71, or until a qualifying withdrawal is made
- Eligibility: Canadian resident, age 18+, first-time home buyer (have not owned a home in the current year or the preceding 4 calendar years)
Best of RRSP + TFSA Combined
The FHSA is uniquely powerful because it offers both tax advantages that are normally exclusive to either the RRSP or the TFSA:
- Tax-deductible contributions: Like an RRSP, your contributions reduce your taxable income for the year, generating an immediate tax refund
- Tax-free growth: Like a TFSA, all investment income (interest, dividends, capital gains) earned inside the FHSA is never taxed
- Tax-free withdrawals: Qualifying withdrawals to purchase your first home are completely tax-free -- you are never taxed on FHSA money used for a home purchase
Combining FHSA with the Home Buyers' Plan (HBP)
You can use both the FHSA and the RRSP Home Buyers' Plan (HBP) for the same qualifying home purchase. The HBP allows you to withdraw up to $60,000 from your RRSP tax-free (must be repaid over 15 years). Combined with a maxed-out FHSA ($40,000 + growth), this gives first-time buyers significant purchasing power.
What Happens if You Don't Buy a Home?
If you do not use your FHSA to buy a qualifying home, you have options:
- Transfer to RRSP/RRIF: You can transfer FHSA funds to your RRSP or RRIF on a tax-free basis (does not affect your RRSP contribution room)
- Taxable withdrawal: Withdrawals that are not for a qualifying home purchase or transfer to RRSP/RRIF are included in your taxable income
- Account closure: The FHSA must be closed by December 31 of the year the account reaches its 15th anniversary, or when you turn 71, whichever comes first
Important Disclaimer
This calculator provides estimates for educational and informational purposes only. Results should not be considered as financial, investment, or tax advice. Actual FHSA contribution limits, tax savings, and investment returns will vary.
FHSA rules and contribution limits are set by the Canada Revenue Agency. Always verify your eligibility and contribution room with CRA and consult a qualified financial advisor or tax professional before making investment decisions.