FHSA Contribution Limits and Tax Savings 2026
FHSA limit 2026: $8,000/year, $40,000 lifetime. How much do you save in taxes? First-time home buyer rules. Calculate FHSA tax savings by province.
FHSA Contribution Limits and Tax Savings 2026
The First Home Savings Account (FHSA) lets first-time home buyers save up to $8,000 per year ($40,000 lifetime) with tax-deductible contributions and tax-free growth. Here's how it works and how much you can save.
FHSA Limits 2026
- Annual limit: $8,000
- Lifetime limit: $40,000
- Carryforward: Unused room carries forward (max $8,000 per year)
Who Can Open an FHSA?
- Canadian residents 18 or older
- First-time home buyers — No ownership in the year you open the account or the four prior years
Tax Savings = Contribution × Marginal Rate
Your FHSA tax savings depend on your marginal tax rate (federal + provincial). Examples:
- 25% marginal rate: $8,000 contribution = $2,000 saved
- 40% marginal rate: $8,000 contribution = $3,200 saved
- 50% marginal rate: $8,000 contribution = $4,000 saved
FHSA vs RRSP vs TFSA for First Home
- FHSA: Tax deduction + tax-free growth + tax-free withdrawal for first home. Best for first-time buyers.
- RRSP: Tax deduction; Home Buyers' Plan lets you borrow $35K (repay over 15 years).
- TFSA: No deduction, but tax-free growth and withdrawal. No first-home restriction.
Max the FHSA first for the deduction plus tax-free withdrawal, then consider RRSP (HBP) or TFSA.
Calculate Your FHSA Tax Savings
FHSA Calculator – tax savings by province →
Enter your income and FHSA contribution. See federal and provincial tax savings instantly.
*Rules from CRA. Consult a tax or financial professional for your situation.*