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In 2023, a total of 484,320 tax filers reported contributing to an FHSA, with a median contribution of $8,000\u2014the maximum allowed for the year. <\/p>\n
The largest group of contributors were younger Canadians aged 25 to 34, who accounted for over 57% of all FHSA users. More than 61% of contributors earned over $60,000, suggesting the product has so far resonated most with higher-earning younger households looking to enter the housing market.<\/p>\n
The FHSA was launched as a hybrid tax-sheltered account, combining the tax-deductibility of RRSPs with the tax-free withdrawals of TFSAs, provided funds are used to purchase a first home.<\/p>\n
Financial author David Chilton, best known for The Wealthy Barber<\/em>, has called the FHSA \u201cthe greatest deal in the history of Canadian savings,\u201d and urged prospective first-time buyers to take full advantage of its unique dual tax benefits.<\/p>\n For a complete rundown on the FHSA, click here. <\/p>\n While FHSA participation was promising for a new program, Tax-Free Savings Accounts (TFSAs) remain the most widely used savings vehicle among the three registered accounts.<\/p>\n In 2023:<\/p>\n By contrast, 6.3 million tax filers contributed to Registered Retirement Savings Plans (RRSPs), with a lower median contribution of $3,420 for those contributing only to an RRSP. That figure rose to $5,000 for those contributing to both an RRSP and TFSA.<\/p>\n RRSP contributors tended to skew older and higher income:<\/p>\n The data suggests a clear divide in how different income and age groups use these savings tools. TFSA contributions were relatively flat across income levels (between $6,000 and $6,500), while RRSP contributions ranged more widely\u2014from just $1,060 among those earning under $20,000, to $6,810 among those earning $80,000 or more.<\/p>\n *HBP = Home Buyers\u2019 Plan allows up to $35,000 RRSP withdrawal for first home, repayable over 15 years.<\/em><\/p>\n Among working-age Canadians (25 to 64), both RRSP and TFSA contribution medians tended to increase with age. <\/p>\n However, older adults were much less likely to contribute to RRSPs, with only 434,000 contributors aged 65+, compared to 2.3 million TFSA contributors in that same age group.<\/p>\n The FHSA, by contrast, was almost entirely driven by younger contributors, with negligible usage among those aged 45 and up. <\/p>\n Visited 8 times, 8 visit(s) today<\/p>\n Last modified: April 10, 2025<\/p>\n<\/p><\/div>\nTFSA continues to outpace RRSPs<\/h3>\n
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\n \nFeature<\/th>\n RRSP<\/th>\n TFSA<\/th>\n FHSA<\/th>\n<\/tr>\n<\/thead>\n \n Annual contribution limit<\/strong><\/td>\n 18% of income (max $31,560 in 2024)<\/td>\n $6,500<\/td>\n $8,000<\/td>\n<\/tr>\n \n Lifetime contribution limit<\/strong><\/td>\n No limit<\/td>\n Cumulative since 2009: $88,000<\/td>\n $40,000<\/td>\n<\/tr>\n \n Tax-deductible contributions<\/strong><\/td>\n \u2714\ufe0f Yes<\/td>\n \u274c No<\/td>\n \u2714\ufe0f Yes<\/td>\n<\/tr>\n \n Tax-free growth<\/strong><\/td>\n \u2714\ufe0f Yes<\/td>\n \u2714\ufe0f Yes<\/td>\n \u2714\ufe0f Yes<\/td>\n<\/tr>\n \n Tax-free withdrawals<\/strong><\/td>\n \u274c No (unless for HBP*)<\/td>\n \u2714\ufe0f Yes<\/td>\n \u2714\ufe0f Yes (if for first home)<\/td>\n<\/tr>\n \n Withdrawal conditions<\/strong><\/td>\n Taxed unless using Home Buyers\u2019 Plan<\/td>\n Anytime, any reason<\/td>\n Must be for first home purchase<\/td>\n<\/tr>\n \n Best suited for<\/strong><\/td>\n Retirement savings<\/td>\n General savings\/investments<\/td>\n First-time homebuyers<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n
\nUsage patterns reveal generational and income divides<\/h3>\n