By J. R. Beauregard on Tuesday, 05 March 2024
Category: Taxes

First Home Savings Account (FHSA)

A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits).

If you opened an FHSA in 2023, you can claim up to $8,000 in FHSA contributions you made by December 31, 2023, as an FHSA deduction on your 2023 income tax and benefit return.

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The information on the FHSA pages is reviewed regularly. Please share any feedback you have to help us improve it.

Plan administrators should consult Savings and pension plan administration.

Opening your FHSA

Review eligibility conditions and find out how you can open an FHSA

Participating in your FHSAs

How much you can contribute or transfer to your FHSAs, and how much unused FHSA participation room you can carry forward

Transfers into your FHSAs

How to make transfers into your FHSAs and how much can be transferred directly into your FHSAs

Withdrawals and transfers out of your FHSAs

Withdrawals from your FHSAs to buy a qualifying home or for other reasons, how to make transfers out of your FHSAs, and possible tax consequences

Tax deductions for FHSA contributions

Deducting FHSA contributions from your income tax and benefit return

What happens if you contribute or transfer too much to your FHSAs

Taxes you may need to pay and how to reduce or eliminate your excess FHSA amount

Closing your FHSAs

Details about your maximum participation period and when to close your FHSAs

Life events and FHSAs

What happens to an FHSA when the FHSA holder ends a marriage or common-law relationship, becomes a non-resident of Canada, or dies

Investments in your FHSAs

Types of investments that are permitted in your FHSAs, and taxes payable on some of the investments that you hold in your FHSAs

Reporting FHSA activities on your income tax and benefit return

Your T4FHSA slip and how to report your FHSA transactions and related activities on your income tax and benefit return

FHSA taxes payable, assessments and reassessments

What to do if you have FHSA taxes payable and your options after your return has been assessed or reassessed

Tax-Free FHSA Estimators New

Estimate how much you could save for a down payment for your first home by participating to your FHSA

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