After Tax Canada / FHSA tax savingsVersion française
FHSA tax savings calculator (2026)
An FHSA contribution cuts your taxable income by a dollar for every dollar, like an RRSP, and a qualifying withdrawal to buy your first home comes out tax-free with nothing to repay. Enter your salary, contribution, and available FHSA room to see the exact tax savings, federal and provincial, for every province.
Enter the room on your CRA notice of assessment. It is $8,000 in the year you open your first FHSA, plus $8,000 in each following year and up to $8,000 of unused room carried forward, up to a $40,000 lifetime limit.
Ontario · 2026
$2,398$2,398 back on a $8,000 contribution
Effective refund rate: 30.0%
Your FHSA room
| Available room | $8,000 |
| Deductible contribution | $8,000 |
| Excess contribution | $0 |
Where the savings come from
| Federal tax saved | $1,640 |
| Provincial tax saved | $758 |
| Total tax saved | $2,398 |
| What the contribution really costs you | $5,602 |
An FHSA contribution reduces your taxable income dollar-for-dollar, up to your available room. The number above is the income tax you do not pay this year: tax on your salary, minus tax on your salary minus the deductible part of the contribution. CPP/QPP and EI are not reduced by FHSA contributions.
The contribution leaves your paycheque, then the tax savings come back as a refund (or smaller balance owing) when you file, so the out-of-pocket cost is the contribution minus the savings.
FHSA limits and eligibility
Your FHSA participation room is $8,000 in the year you open your first FHSA, plus $8,000 in each following year, up to a $40,000 lifetime limit. Unused room carries forward, up to $8,000 in any one year, and room only starts building once the account is open. Enter your available room above: your exact figure is on your CRA notice of assessment or in CRA My Account; transfers from an RRSP use the same room but are not deductible, so they save no tax here. To open an FHSA you must be a resident of Canada and a first-time home buyer: you did not live in a home you or your spouse owned at any time in the current year or the previous four calendar years. A qualifying withdrawal to buy your first home comes out tax-free, with nothing to repay.
Make your take-home work harder
Your paycheque is only half the story. These are the account types Canadians use to put after-tax money to work. What follows is factual information, not financial advice.
High-interest savings account
A savings account that pays a higher rate than a chequing account. Money stays liquid and earns interest while you keep it.
Partner offers coming soon
Investment account
An account for buying investments such as ETFs and stocks. It can be registered (TFSA, RRSP, FHSA) or non-registered.
Partner offers coming soon
Bank account
A chequing account for daily spending and bill payments, often bundled with savings and credit products.
Partner offers coming soon
We are reviewing Canadian providers. When offers appear here, they will be clearly labelled.
Disclosure: if partner offers are listed here in the future, they will be clearly labelled, and we may earn a commission. Account descriptions are factual information, not financial advice.
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Worked examples (2026)
| Salary | FHSA contribution | Tax saved | After-tax cost |
|---|---|---|---|
| $75,000 · ON | $5,000 | $1,571 | $3,429 |
| $100,000 · ON | $8,000 | $2,398 | $5,602 |
| $100,000 · QC | $8,000 | $2,885 | $5,115 |
| $150,000 · BC | $16,000 | $6,330 | $9,670 |
2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I save with an $8,000 FHSA contribution?
In 2026, on a $100,000 Ontario salary, an $8,000 FHSA contribution saves $2,398 in income tax ($1,640 federal + $758 provincial), an effective refund rate of 30.0%. That means the $8,000 contribution really costs you $5,602 out of pocket.
How does the FHSA tax deduction work?
An FHSA contribution reduces your taxable income dollar-for-dollar. The tax you save equals your income tax on your salary minus your income tax on (salary minus the contribution), in practice roughly your marginal tax rate times the contribution. The calculator above runs that exact math with the 2026 federal and provincial brackets.
Do FHSA contributions reduce CPP or EI?
No. FHSA contributions reduce income tax only, CPP/QPP and EI premiums are calculated on your employment earnings and do not change. That is why the savings above come entirely from the federal and provincial tax lines.
How are FHSA tax savings different in Quebec?
Quebec's higher provincial brackets mean bigger savings: on a $100,000 salary, an $8,000 FHSA contribution saves $2,885 in Quebec ($1,365 federal + $1,520 provincial) versus $2,398 in Ontario, an effective refund rate of 36.1% instead of 30.0%.
FHSA vs RRSP: which saves more tax?
The deduction works the same way in both, so the same contribution saves the same tax in the year you claim it. The difference is on the way out: a qualifying FHSA withdrawal to buy your first home is tax-free and never repaid, while an RRSP withdrawal is taxed when it comes out, and money taken under the Home Buyers' Plan must be repaid to the RRSP. This calculator shows the contribution side: the immediate tax value of the deduction.
When do I actually get the FHSA tax savings?
Most people receive it as a tax refund when they file, on a $75,000 Ontario salary, a $5,000 contribution saves $1,571, which typically lands as a refund. The deduction does not have to be claimed in the year of the contribution, so it can be saved for a later year when your income, and your marginal rate, are higher.
How much FHSA room do I have?
Your FHSA participation room is $8,000 in the year you open your first FHSA, plus $8,000 in each following year, up to a $40,000 lifetime limit. Unused room carries forward, up to $8,000 in any one year, and room only starts building once the account is open. The calculator above lets you enter your available room: your exact number is on your CRA notice of assessment or in CRA My Account. A contribution above your room is an excess FHSA amount: it saves no tax this year, and the CRA charges 1% per month on the highest excess amount in the month until the excess is removed. Transfers from an RRSP use the same room but are not deductible.