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Canada · 2026 FHSA · FreeTax savings, growth toward your first home, and how FHSA stacks up against RRSP HBP and TFSA.
2026 FHSA rules — estimates update as you type.
Annual room is $8,000; with one-year carryforward you may contribute up to $16,000 in a year (lifetime cap $40,000).
You must be a first-time home buyer (no qualifying home in the current year or previous four calendar years) and open your FHSA by December 31 of the year you turn 71.
Estimated tax refund this year
$2,372
2026 federal + provincial tax without the deduction minus tax with it (marginal rate 29.65%)
This tool provides estimates only and is not advice from the CRA or a financial institution. Rules, limits, and eligibility can change; confirm with Canada.ca or a qualified professional.
An $8,000 FHSA contribution on $75,000 of Ontario income cuts your 2026 income tax by about $2,522, and the money comes out tax-free for a first home.
| Income | Tax saved | Saved per $100 | Net cost of $8,000 |
|---|---|---|---|
| $50,000 | $1,674 | $20.93 | $6,326 |
| $75,000 | $2,522 | $31.53 | $5,478 |
| $100,000 | $2,398 | $29.97 | $5,602 |
| $150,000 | $3,473 | $43.41 | $4,527 |
Tax saved is the difference in 2026 federal and Ontario income tax (including the Ontario surtax and Ontario Health Premium) with and without the $8,000 deduction, so a contribution that crosses a bracket is priced exactly. Employment income with basic personal amounts, CPP and EI credits; the calculator above uses the same method. The FHSA limit is $8,000 a year and $40,000 for life.
The annual FHSA contribution limit is $8,000, with a lifetime maximum of $40,000. Unused annual room of up to $8,000 can be carried forward to the following year, allowing a maximum of $16,000 in a single year.
Yes. FHSA contributions are tax-deductible, reducing your taxable income similar to an RRSP. Withdrawals for a qualifying home purchase are also completely tax-free, combining the best features of both an RRSP and TFSA.
Yes. You can combine your FHSA (up to $40,000 lifetime) with the RRSP Home Buyers' Plan (up to $60,000) for a total of up to $100,000 in tax-advantaged savings toward your first home.
To open an FHSA, you must be a Canadian resident, at least 18 years old, and a first-time home buyer — meaning you have not owned a qualifying home that you lived in at any point during the current year or the preceding four calendar years.
If you do not use your FHSA to purchase a home, you can transfer the funds to your RRSP or RRIF tax-free, without affecting your RRSP contribution room. The account must be closed by December 31 of the year you turn 71.