FHSA calculator.
See your refund and the FHSA-vs-TFSA edge.
Project your First Home Savings Account balance year by year, see the tax refund each contribution earns, and compare against a TFSA used for the same goal — with the math shown.
Used to calculate your tax refund.
FHSA contribution room only starts the year you open the account — unlike TFSA, it doesn’t accrue from age 18. If you haven’t opened one yet, opening before December 31 gives you $8,000 of room for 2026.
Allowed in 2026: $8,000
Reinvesting compounds the refund tax-free. If your contribution is already at the annual cap, the overflow grows in a separate tax-free bucket assumed to match your return rate.
Over 5 years, your FHSA outperforms a TFSA used for the same goal by $13,371 — almost entirely from tax refunds that compounded tax-free.
FHSA vs TFSA total wealth
Year-by-year breakdown
| Year | Annual room | Contribution | Lifetime / $40k | Refund | Growth | Balance EOY |
|---|---|---|---|---|---|---|
| 2026 | $8,000 | $8,000 | $8,000 | $2,372 | $0 | $8,000 |
| 2027 | $8,000 | $8,000 | $16,000 | $2,372 | $480 | $16,480 |
| 2028 | $8,000 | $8,000 | $24,000 | $2,372 | $989 | $25,469 |
| 2029 | $8,000 | $8,000 | $32,000 | $2,372 | $1,528 | $34,997 |
| 2030 | $8,000 | $8,000 | $40,000 | $2,372 | $2,100 | $45,097 |
Show the math
Marginal tax rate at $80,000 (ON)
29.65% = federal 20.50% + provincial 9.15%
Per-year recurrence (EOY contribution)
annualRoom_y = $8k + carry_y
lifetimeRemaining = $40k − lifetimeUsed_{y−1}
desiredContrib = userContrib + (prevRefund × reinvestFactor)
contribution_y = min(desiredContrib, annualRoom_y, lifetimeRemaining)
refund_y = contribution_y × MTR
fhsa_y = fhsa_{y−1} × (1 + r) + contribution_y
carry_{y+1} = min($8k, annualRoom_y − contribution_y)FHSA-vs-TFSA delta — closed form
Both paths receive the same gross user contribution stream each year, so the contributions cancel out of the comparison. The delta is purely the refund stream compounded at the return rate:
delta = Σ refund_y × reinvestFactor × (1+r)^(N−y)
For your inputs: $13,371
Assumptions
- 2026 federal and provincial brackets are used for every year of the projection. Real-world bracket creep is small over 5–10 years and won’t materially change the FHSA-vs-TFSA delta.
- The marginal rate is computed on gross income, ignoring the deduction’s effect on bracket position. Refund is slightly under-stated for users near a bracket edge.
- Refund timing: the refund earned in year y is reinvested into year y+1’s contribution attempt. This differs from our TFSA vs RRSP calculator, which models same-year reinvestment for the RRSP. The asymmetry reflects the FHSA’s tighter annual cap.
- The TFSA-path comparison assumes you have TFSA room available for the same gross contribution stream. If your TFSA is already maxed, the real-world alternative would be a non-registered account, which would underperform a TFSA — making the FHSA advantage shown here a conservative estimate.
Why the FHSA wins for a first home
The FHSA is the only Canadian registered account that combines an RRSP-style tax deduction with TFSA-style tax-free withdrawals — but only if you use it for a qualifying first-home purchase. For the same gross dollars contributed, the FHSA generates a tax refund a TFSA never would, which is the entire source of the FHSA-vs-TFSA delta this calculator computes.
Not buying a house? Compare TFSA vs RRSP for retirement instead — same math-first approach.
TrueBracket provides educational information, not financial advice. Consult a qualified advisor for decisions specific to your situation.
Frequently asked questions
Quebec residents: You file provincial tax separately. Your federal refund computes correctly here, but consult a tax professional for QC-specific FHSA mechanics.