Calculate your First Home Savings Account contribution room, tax refund, and how much you can save toward your first home completely tax-free.
| Annual limit | $8,000 |
| Lifetime limit | $40,000 |
| Max carry-forward | $8,000 (1 year) |
| Account opened | April 1, 2023 |
| Max account life | 15 years or age 71 |
| Contribution deadline | December 31 (no 60-day rule) |
| Contributions deductible? | ✓ Yes |
| Growth taxable? | ✗ No |
| Qualifying withdrawal taxable? | ✗ No |
| Repayment required? | ✗ No (unlike HBP) |
| If not used for home? | Transfer to RRSP/RRIF |
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The First Home Savings Account (FHSA) is Canada's newest tax-advantaged savings account, introduced on April 1, 2023. It is specifically designed for first-time homebuyers and offers what financial experts call a "triple tax advantage" — contributions are tax-deductible, growth inside the account is tax-free, and qualifying withdrawals are completely tax-free when used to purchase your first home.
The key difference from all other accounts: The FHSA combines the best of both the RRSP (deductible contributions) and TFSA (tax-free withdrawals). No other Canadian account offers both. The RRSP gives you a deduction but withdrawals are taxed. The TFSA gives you tax-free withdrawals but contributions are not deductible. The FHSA gives you both — but only for a first home purchase.
| Feature | FHSA | RRSP (HBP) | TFSA |
|---|---|---|---|
| Contributions deductible? | ✓ Yes | ✓ Yes | ✗ No |
| Growth tax-free? | ✓ Yes | ✓ Yes | ✓ Yes |
| Home withdrawal tax-free? | ✓ Yes | ✓ Yes | ✓ Yes |
| Repayment required? | ✓ No repayment | ✗ Must repay over 15 yrs | ✓ No repayment |
| Annual limit | $8,000 | 18% of income | $7,000 |
| Lifetime limit | $40,000 | No lifetime limit | $109,000 (cumulative) |
| Non-home withdrawal? | Taxable (or transfer to RRSP) | Taxable | Tax-free, any purpose |
One of the most powerful strategies for first-time buyers is to use both accounts together for the same home purchase. You can withdraw up to $40,000 tax-free from your FHSA and simultaneously withdraw up to $35,000 from your RRSP under the Home Buyers' Plan — for a combined $75,000 tax-free down payment. If both partners in a couple qualify, that's a potential $150,000 tax-free combined down payment.
FHSA contribution room only begins accumulating from the year you open your first account — not automatically. This means if you open an FHSA in 2026 with $0 contribution, you still earn $8,000 of room in 2026 that carries forward to 2027. The cost to open an FHSA is zero at most institutions. Even if you can't afford to contribute yet, opening the account as soon as possible starts your room accumulating — which could be worth thousands of dollars in future tax savings.