How this calculator works
A First Home Savings Account gives $8,000 of participation room in the year you open it and in each year after, up to $40,000 of lifetime room. Unused room can be carried forward, but the most you can carry is one year's $8,000, so the largest room available in any single year is $16,000. Enter what you plan to contribute, any room you carried in, what you have contributed in total and your marginal tax rate. The page shows the room available, the deduction, and the tax saved at your own marginal rate. Contributions are deductible, so the deduction is the contribution itself and the saving is that amount times your marginal rate; you would have to claim the deduction on your return. Withdrawals for a qualifying home purchase are tax free, and contributions moved from an RRSP are neither deductible nor use room. The page does not check whether you qualify as a first-time homebuyer, does not model the 15-year expiry of an account, and does not calculate the monthly penalty on an excess contribution.
Formula
Lifetime room remaining = max(0, $40,000 - total contributed). Room this year = min($8,000 + min(carried-in room, $8,000), lifetime room remaining). Deduction = contribution. Tax saving = contribution x marginal rate. Excess = max(0, contribution - room this year). Room carried forward = min($8,000, max(0, room this year - contribution)).
Worked example
Contributing $8,000 in your first year with no room carried in gives $8,000 of room, an $8,000 deduction and, at a 30% marginal rate, $2,400 of tax saved. With $8,000 of unused room carried in, room this year is $16,000. Contributing $20,000 in that year leaves $4,000 above your room. After $36,000 of lifetime contributions only $4,000 of lifetime room remains, so room this year drops to $4,000.
Frequently asked questions
How much room can I have in one year?
At most $16,000, which is the current year's $8,000 plus up to $8,000 carried forward from the previous year.
Is the contribution deductible?
Yes, unlike a TFSA contribution. You claim the deduction on your return, which is why the calculator multiplies the contribution by your marginal rate.
When does the room start?
Only once you open your first FHSA. Unlike a TFSA, years before you open an account do not build room.
What happens to money left in the account?
An FHSA can stay open for 15 years, or until the end of the year you turn 71. This page does not model either limit.