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FHSA Tax Savings Calculator
Estimate tax refunds and compound growth using Canada's First Home Savings Account (FHSA) — the only account that combines RRSP tax deductions with TFSA tax-free withdrawals.
FHSA Key Rules (CRA 2025–2026):
- Annual limit: $8,000 per year
- Carry-forward: Unused annual room carries forward (max $8,000 per year), so maximum in any single year = $16,000
- Lifetime maximum: $40,000 total contributions
- Account lifespan: Max 15 years OR end of year you turn 71 (whichever is earlier)
- Overcontribution penalty: 1% per month on excess amounts
- On withdrawal: Tax-free when used for a qualifying first home purchase — no repayment required (unlike HBP from RRSP)
Your FHSA Strategy
Used to estimate your combined federal + Ontario marginal tax rate.
If you opened your FHSA in a prior year but didn't contribute the full $8,000, that unused room can be added to year 1.
A balanced portfolio of Canadian ETFs has historically averaged 6–8% annually.
Financial Breakdown
Enter Your Details
Fill in your income and contribution details, then click Calculate FHSA Value.
FHSA vs RRSP Home Buyers' Plan (HBP) — Key Differences
| Feature | FHSA | RRSP Home Buyers' Plan (HBP) |
|---|---|---|
| Annual Limit | $8,000/year | No dedicated annual limit — draws from RRSP room |
| Lifetime Max | $40,000 | $60,000 per person ($120,000 per couple) — Increased from $35,000 effective April 16, 2024 |
| Tax Deduction on Contribution | ✅ Yes (like RRSP) | ✅ Yes (it IS an RRSP contribution) |
| Tax-Free Withdrawal | ✅ Yes — no repayment required | ⚠️ No — must repay over 15 years or it's added to income |
| Carry-Forward Unused Room | ✅ Yes — up to $8,000/year carry-forward | N/A |
| Use Both Together? | ✅ YES — You can use FHSA AND HBP together on the same qualifying first home purchase. Combined max per person: $100,000 (FHSA $40K + HBP $60K). Per couple: up to $200,000. | |
FHSA Frequently Asked Questions
You must be: (1) a Canadian resident for tax purposes, (2) at least 18 years old, (3) a first-time home buyer — meaning you or your spouse/common-law partner did NOT live in a home you owned at any time during the preceding 4 calendar years. Permanent residents, temporary residents, and citizens all qualify if they meet the above conditions.
If you do not purchase a qualifying first home within the account's lifespan (15 years or age 71), you can transfer the FHSA funds to your RRSP or RRIF tax-free and without affecting your RRSP contribution room. Withdrawing for a non-qualifying purpose is treated as regular income (taxable), just like an RRSP withdrawal.
Yes, if you are a Canadian resident for tax purposes (typically living in Canada for most of the year), you qualify to open a FHSA regardless of immigration status. Work permit holders, study permit holders, and PRs who are Canadian tax residents are all eligible.