CA Tax Tools

FHSA Calculator

Calculate how much tax you save by contributing to a First Home Savings Account. FHSA contributions are tax-deductible, growth is tax-free, and qualified withdrawals for your first home are tax-free.

FHSA Details

FHSA Summary

Annual Tax Savings$2,372
Total Tax Savings$11,860
Total Contributions$40,000
Total Growth$7,803
Final Balance$47,803
Remaining Lifetime Room$0

Year-by-Year Projection

YearStart BalanceContributionTax SavingsGrowthEnd Balance
2025$0$8,000$2,372$480$8,480
2026$8,480$8,000$2,372$989$17,469
2027$17,469$8,000$2,372$1,528$26,997
2028$26,997$8,000$2,372$2,100$37,097
2029$37,097$8,000$2,372$2,706$47,803
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How it works: The First Home Savings Account (FHSA) lets Canadian residents save up to $8,000 per year (lifetime limit of $40,000) toward a qualifying first home purchase. Contributions are tax-deductible (like an RRSP) and withdrawals for a home purchase are tax-free (like a TFSA). Unused contribution room carries forward up to $8,000. The account must be closed within 15 years of opening or by December 31 of the year you turn 71. Tax savings shown assume a constant marginal tax rate based on your current income and province.

FHSA Basics

The First Home Savings Account (FHSA) combines the best of RRSP and TFSA — contributions are tax-deductible and withdrawals for a qualifying first home purchase are tax-free.

Contribution limits: $8,000 per year, $40,000 lifetime. Unused room carries forward (max $8,000), so you can contribute up to $16,000 in a single year.

Eligibility: Canadian resident, 18+, first-time homebuyer (have not owned a home in the current year or the preceding four calendar years).

Account lifetime: Maximum 15 years or until December 31 of the year you turn 71, whichever comes first.

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Sources

Last updated April 2026. Reflects 2026 tax year rates.

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Last updated April 19, 2026Tax year 2026

Data sources: CRA (canada.ca)

This tool is general information only, not financial advice.

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