Tax and Accounts

First Home Savings Account (FHSA)

Registered account combining RRSP-style deduction with TFSA-style tax-free withdrawal for a first home purchase.

Definition

Introduced April 1, 2023. Annual contribution limit is $8,000 with a maximum $8,000 carry-forward of unused room from the prior year; lifetime limit is $40,000. Contributions are tax-deductible like an RRSP. Qualifying withdrawals to purchase a first home are tax-free like a TFSA. The account must be closed by December 31 of the year the holder turns 71 or 15 years after the account was first opened, whichever is earlier. Unused funds can be transferred to an RRSP or RRIF without affecting existing RRSP contribution room.

Source

Income Tax Act s.146.6; Department of Finance Canada FHSA backgrounder (2022)

Related terms in Tax and Accounts

AI case study

See how First Home Savings Account (FHSA) applies in practice

One named-role scenario with realistic numbers and the rule citation.

Want this kind of explanation on every wrong answer?

The Ciroexam AI tutor is grounded in the same primary sources cited above. Every wrong practice answer gets the rule that the distractor was testing.

Try the free mock exam See pricing