FHSA Room Calculator: 2026 Contribution Limit

Calculate your FHSA contribution room for 2026, including carry-forward. Free tool for first-time home buyers saving a tax-free down payment.

Key Takeaways

  • The FHSA offers both tax-deductible contributions and tax-free withdrawals — the best of RRSP and TFSA combined.
  • You can contribute up to $8,000/year with a $40,000 lifetime max; unused room carries forward up to $8,000.
  • FHSA and HBP can be used together for the same home purchase, maximizing your down payment.
  • Provincial first-time buyer programs (BC HOME, Ontario LTT rebate) stack on top of FHSA benefits.

Understanding FHSA Contribution Room

The First Home Savings Account (FHSA) was introduced in 2023 as a new registered account to help Canadians save for their first home. It combines the best features of the RRSP and TFSA: contributions are tax-deductible (like an RRSP), and qualifying withdrawals for a home purchase are completely tax-free (like a TFSA).

The FHSA has a lifetime contribution limit of $40,000, with an annual limit of $8,000. Unused annual room can carry forward up to $8,000 to the next year, giving you a maximum contribution of $16,000 in a single year if you contributed nothing the previous year.

How It Works

This calculator tracks your available FHSA contribution room based on when you opened your account and your past contributions. Enter the year you opened your FHSA and any contributions you've made each year.

The calculator applies the $8,000 annual limit with carry-forward rules, capped at the $40,000 lifetime maximum. It shows your remaining room for the current year and projects when you'll reach your lifetime limit at your current contribution pace.

FHSA for First-Time Buyers by Province

While the FHSA is a federal program with the same rules across Canada, the value it provides differs by province because of varying housing markets and provincial programs that stack with it.

In British Columbia, first-time buyers can combine FHSA savings with the BC First Time Home Buyers' Program, which exempts properties up to $500,000 from the property transfer tax (partial exemption up to $525,000). Vancouver buyers especially benefit from FHSA given that the average home price exceeds $1 million — maximizing FHSA contributions is essential for building a meaningful down payment.

In Ontario, first-time buyers get a land transfer tax rebate of up to $4,000 provincially, plus up to $4,475 from the City of Toronto if buying there. These rebates combined with FHSA savings and the HBP can significantly reduce the cash needed at closing.

Alberta has no provincial land transfer tax, so the FHSA down payment savings go further. Quebec first-time buyers should note that contributions are also deductible on the Quebec provincial return, providing additional tax savings beyond the federal deduction.

Combining FHSA with Other First-Time Buyer Programs

The FHSA can be combined with the Home Buyers' Plan (HBP) for the same qualifying home purchase. The HBP lets you withdraw up to $60,000 from your RRSP (as of 2024), while the FHSA provides up to $40,000 in tax-free savings. Together, that is up to $100,000 in registered account funds toward your first home — though HBP withdrawals must be repaid over 15 years, while FHSA withdrawals are permanently tax-free.

You can also transfer unused FHSA funds to your RRSP without affecting your RRSP contribution room if you decide not to buy. This makes the FHSA a low-risk savings vehicle: if you end up buying, you get a tax-free withdrawal; if you don't, you get extra RRSP room.

Key Facts

  • Annual contribution limit is $8,000, with a $40,000 lifetime maximum.
  • Unused room carries forward, but only up to $8,000 per year — so maximum carry-forward is $8,000.
  • You must be a Canadian resident aged 18-71 and a first-time home buyer to open an FHSA.
  • Contributions are tax-deductible, reducing your taxable income for the year.
  • Qualifying withdrawals for a first home purchase are completely tax-free.
  • The account must be closed within 15 years of opening, or by December 31 of the year you turn 71.
  • If you don't buy a home, you can transfer the balance to an RRSP or RRIF without affecting your RRSP room.
  • You can hold the same investments as a TFSA or RRSP: stocks, bonds, ETFs, GICs, and mutual funds.

FAQ

Who qualifies to open an FHSA?

You must be a Canadian resident, at least 18 years old (or the age of majority in your province), and a first-time home buyer. The CRA defines a first-time buyer as someone who has not owned a home that was their principal residence in the current year or the preceding four calendar years.

Can I use the FHSA and the Home Buyers' Plan (HBP) together?

Yes. You can make a tax-free FHSA withdrawal and an HBP withdrawal from your RRSP for the same qualifying home purchase. This lets you combine both programs to maximize your down payment.

What happens if I don't use my FHSA to buy a home?

If you don't buy a qualifying home within 15 years of opening the account (or by age 71), you can transfer the balance to your RRSP or RRIF without using RRSP room. Alternatively, you can make a taxable withdrawal. The account must be closed.

How does FHSA carry-forward room work?

If you contribute less than $8,000 in a year, the unused portion (up to $8,000) carries forward to the next year. For example, if you contribute $5,000 in year one, you can contribute up to $11,000 in year two ($8,000 new room + $3,000 carry-forward). The maximum carry-forward is always $8,000.

Can I use FHSA and HBP together to buy a home in Vancouver or Toronto?

Yes. You can withdraw from both your FHSA (up to $40,000 tax-free) and your RRSP via the HBP (up to $60,000) for the same qualifying home purchase. In expensive markets like Vancouver and Toronto, combining both programs is especially valuable — together they can provide up to $100,000 toward your down payment. The key difference is that HBP withdrawals must be repaid over 15 years, while FHSA withdrawals are permanently tax-free.

How does FHSA work with provincial first-time buyer programs?

The FHSA stacks with all provincial programs. In BC, you can combine FHSA savings with the property transfer tax exemption (up to $500,000). In Ontario, combine it with the land transfer tax rebate (up to $4,000 provincial + $4,475 in Toronto). Alberta has no land transfer tax, so your FHSA savings go entirely toward the down payment. Quebec residents get an additional provincial tax deduction on FHSA contributions beyond the federal deduction.

Can I transfer from my RRSP to an FHSA?

Yes, you can transfer from your RRSP to your FHSA. The transfer counts toward your FHSA annual and lifetime limits, but you don't get an additional tax deduction for it. The benefit is that a future qualifying withdrawal from the FHSA is tax-free, whereas the RRSP withdrawal under HBP must be repaid.

Updated April 2026. Information on this page is provided for educational purposes only. Tax rules, rates, and government programs may change — verify details with the CRA or a qualified financial advisor.