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FHSA Calculator Canada 2025

Calculate your First Home Savings Account tax deduction, growth projection, FHSA + HBP $100K combo strategy, and compare FHSA vs RRSP vs TFSA for first-time home buyers.

FHSA is the best of both worlds: tax-deductible contributions (like RRSP) + tax-free withdrawals for your first home (like TFSA). Up to $40,000 lifetime.
$
Employment income before deductions
$
Annual limit $8,000 (up to $16,000 with carryforward)
$
Current balance in your FHSA
$
Max $8,000 carry-forward from prior year
%
Assumed annual investment return
Account must be used within 15 years
--

Estimates only. Consult a financial advisor for personal tax and investment advice.

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How to Use This Calculator

Tab "Contribution & Tax Saving"

Enter your annual income, province, and planned FHSA contribution. The calculator shows your tax deduction, refund at your combined marginal rate, and projected account balance over time. Under "More options," add your existing FHSA balance, carryforward room, expected return rate, and years until home purchase for a growth projection.

Tab "FHSA + HBP Combo"

See how to stack the FHSA ($40K max) with the Home Buyers' Plan ($60K from RRSP) for up to $100,000 in tax-advantaged funds. Enter your FHSA balance, RRSP balance, and other savings. The calculator shows total funds available, FHSA (tax-free, no repayment) vs HBP (must repay over 15 years), and your total home purchase power.

Tab "FHSA vs RRSP vs TFSA"

Compare the three accounts side-by-side for first-time home buyers. Enter a contribution amount and investment period. See how FHSA wins with tax-deductible contributions AND tax-free withdrawals, versus RRSP (taxed on withdrawal unless HBP) and TFSA (no deduction but tax-free growth).

The Formulas

FHSA tax saving:
Tax refund = Contribution x Combined marginal rate
Combined marginal rate = Federal rate + Provincial rate

FHSA contribution limits:
Annual limit: $8,000
Carryforward: up to $8,000 from prior year
Max in one year: $16,000 (with full carryforward)
Lifetime limit: $40,000

Growth projection:
Balance(year N) = (Balance(year N-1) + Annual contribution) x (1 + Return rate)

FHSA + HBP combo:
Total tax-advantaged = FHSA balance (max $40K) + HBP withdrawal (max $60K)
HBP repayment = Withdrawal amount / 15 years

2025 federal tax brackets:
$0 - $57,375: 14.5%
$57,375 - $114,750: 20.5%
$114,750 - $158,468: 26%
$158,468 - $220,000: 29%
$220,000+: 33%

All figures based on CRA rates for the 2025 tax year. Provincial rates vary -- select your province in the calculator for accurate combined rates. FHSA contributions reduce your taxable income dollar-for-dollar, just like RRSP contributions.

Example

Sarah -- Graphic Designer in Toronto, Income $80,000

Sarah opens her FHSA in 2025 and contributes the full $8,000. She plans to buy her first home in 5 years. She invests in a balanced ETF portfolio expecting 6% annual returns.

FHSA contribution$8,000
Combined marginal rate (ON)29.65% (20.5% federal + 9.15% provincial)
Tax refund this year$2,372
Projected balance in 5 years~$47,800 (with $40K contributions + growth)
Total tax saved over 5 years~$11,860

Sarah's $8,000 contribution reduces her taxable income to $72,000, generating a $2,372 tax refund. Over 5 years, she contributes the $40,000 lifetime max, saves nearly $12,000 in taxes, and withdraws the full balance tax-free for her home purchase. If she also uses HBP, she can access up to $100,000 in tax-advantaged funds.

FHSA Key Facts 2025

ItemDetail
Annual contribution limit$8,000
Lifetime contribution limit$40,000
Carryforward (max per year)$8,000 unused room
Maximum in single year$16,000 (with carryforward)
Tax treatment -- contributionsTax-deductible (like RRSP)
Tax treatment -- growthTax-free (like TFSA)
Tax treatment -- qualifying withdrawalTax-free (like TFSA)
HBP (Home Buyers' Plan) limit$60,000 from RRSP
FHSA + HBP combined$100,000 tax-advantaged
EligibilityCanadian resident, 18+, first-time buyer
Account lifetime15 years or age 71, whichever first
Eligible investmentsCash, GICs, stocks, bonds, mutual funds, ETFs
If not used for homeTransfer to RRSP (no room impact) or withdraw as taxable

Frequently Asked Questions

The First Home Savings Account (FHSA) is a registered savings plan that launched on April 1, 2023. It was introduced in the 2022 federal budget to help Canadians save for their first home. The FHSA combines tax-deductible contributions (like an RRSP) with tax-free withdrawals for a qualifying home purchase (like a TFSA), making it the most tax-efficient vehicle for first-time home buyers.
If you do not contribute the full $8,000 in a year, the unused room carries forward to the next year. However, the maximum carryforward is $8,000. This means in any given year, the most you can contribute is $16,000 ($8,000 annual limit plus $8,000 carryforward). You must have an open FHSA to accumulate carryforward room -- simply being eligible is not enough. For example, if you open an FHSA in 2024 and contribute $5,000, you have $3,000 in carryforward room, allowing a $11,000 contribution in 2025.
Yes. You can use both the FHSA and the Home Buyers' Plan (HBP) for the same qualifying home purchase. The FHSA provides up to $40,000 in completely tax-free withdrawals with no repayment obligation. The HBP allows up to $60,000 from your RRSP, but you must repay it over 15 years (starting the second year after withdrawal). Combined, this gives you access to up to $100,000 in tax-advantaged funds for your first home.
You are considered a first-time home buyer if you did not own a qualifying home (or live in one owned by your spouse or common-law partner) at any time in the current calendar year before the FHSA is opened, or in the preceding four calendar years. A qualifying home includes houses, condos, townhouses, and other residential properties in Canada. If you previously owned a home but have not owned one for 5+ years, you may qualify again.
If you do not use the FHSA to purchase a qualifying home, you have two options. First, you can transfer the balance to your RRSP or RRIF without affecting your RRSP contribution room -- this is a significant benefit as it essentially creates extra RRSP room. Second, you can withdraw the funds, but the withdrawal will be included in your taxable income for that year. The account must be closed by the earlier of December 31 of the year you turn 71, or 15 years after opening.

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