FHSA vs TFSA vs RRSP: how the three accounts differ, and which one fits your goal
Quick summary
The FHSA is for a first home: contributions are generally deductible and a qualifying withdrawal is not taxed. The TFSA gives no deduction, but withdrawals are not taxed. The RRSP gives a deduction, but withdrawals are added to your income. For 2026 the limits are $8,000 for the FHSA, $7,000 for the TFSA and $33,810 for the RRSP. Next step: use the tool, then check your own room in CRA My Account. Learn more about the First Home Savings Account.
Checked November 11, 2026. Main source: CRA: Participating in your FHSAs (modified September 17, 2026, read November 11, 2026). See all 8 sources.
Key facts
- FHSA room
- $8,000 a year, up to $40,000 in total
- Source: CRA, modified September 17, 2026
- TFSA limit 2026
- $7,000
- Source: CRA, modified October 28, 2026
- RRSP dollar limit 2026
- $33,810 (your own limit depends on your income)
- Source: CRA, modified October 28, 2026
- Withdrawals
- FHSA qualifying: not taxed. TFSA: not taxed. RRSP: added to your income
- Source: CRA pages listed below
Which account fits your goal?
Pick what the money is for. The tool shows how each account fits, with a reason. You can use more than one, because each account has its own room.
Answer up to 3 questions. Nothing is saved or sent. This compares the rules. It is not advice, and you can use more than one account.
Pick what the money is for to see how each account fits.
The tool compares rules from the CRA pages below. Whether a deduction helps depends on your tax rate now compared with later. That part is our reasoning, not a CRA rule. We use no income cutoff, because we found no CRA page that sets one.
The three accounts side by side
| FHSA | TFSA | RRSP | |
|---|---|---|---|
| What it is for | A first home | Any goal | Retirement, with a home option |
| Contributions deductible | Generally yes | No | Yes |
| Money out | Qualifying home withdrawal is not taxed or repaid. Other withdrawals are taxable income | Not taxed. Any time | Added to your income. Home Buyers' Plan: repay over 15 years |
| Limit | $8,000 a year, plus unused room carried forward (capped at $8,000), up to $40,000 in total | $7,000 for 2026. Your own room depends on your history | $33,810 dollar limit for 2026. Your own limit depends on your income |
| Who can open | Canadian resident, 18 or older (19 in some provinces), 71 or younger, first-time home buyer | Canadian resident, 18 or older (19 in some provinces), with a SIN | See the CRA RRSP guide |
| Room after a withdrawal | Not covered on this page | Added back at the start of the next year | We could not confirm on a CRA page |
Sources: CRA: Participating in your FHSAs (modified September 17, 2026, read November 11, 2026); CRA: Opening your FHSAs (modified February 10, 2026, read November 11, 2026); CRA: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026); CRA: What is the Home Buyers' Plan (modified February 17, 2026, read November 11, 2026); CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE (modified October 28, 2026, read November 11, 2026); CRA: Tax-Free Savings Account (TFSA), guide for individuals (RC4466, Rev. 25, no calendar date shown, last confirmed November 11, 2026); CRA: Opening a TFSA (modified October 10, 2025, read November 11, 2026); CRA: RRSPs and other registered plans for retirement (T4040, Rev. 25, modified January 23, 2026, read November 11, 2026).
If the goal is a first home
The CRA says an FHSA withdrawal for a qualifying home is not taxed, and you do not repay it. The Home Buyers' Plan lets you take up to $60,000 from your RRSP for a first home, and you repay it over 15 years. Money left in an FHSA after a home can move to an RRSP or RRIF without tax if the rules are met. A move into a TFSA is taxable.
Sources: CRA: Withdrawals and transfers out of your FHSAs (modified February 10, 2026, read November 11, 2026); CRA: What is the Home Buyers' Plan (modified February 17, 2026, read November 11, 2026).
If you may need the money soon
The CRA's TFSA guide says you can take money out at any time with no tax. It also says the amount you withdraw is added back to your room at the start of the following year, not the same year. An RRSP withdrawal is added to your income for the year it is taken out, per the CRA's RRSP guide.
Sources: CRA: Tax-Free Savings Account (TFSA), guide for individuals (RC4466, Rev. 25, no calendar date shown, last confirmed November 11, 2026); CRA: RRSPs and other registered plans for retirement (T4040, Rev. 25, modified January 23, 2026, read November 11, 2026).
Before you put money in
- Check your own room in CRA My Account. Going over your room can cost you tax, so read the CRA page for each account.
- Use more than one account if you need to. Each has its own room.
- Ask your bank or credit union which of these accounts it offers.
Check what you learned
3 quick questions. Nothing is saved or sent.
1. Which of the three accounts gives you no tax deduction for what you put in?
2. What happens to money you take out of an RRSP, per the CRA's RRSP guide?
3. When is TFSA room added back after you take money out?
Questions people ask
What is the difference between an FHSA, a TFSA and an RRSP?
The FHSA is for a first home, with deductible contributions and tax-free qualifying withdrawals. The TFSA has no deduction, but withdrawals are not taxed. The RRSP has a deduction, but withdrawals are added to your income.
Can I have an FHSA, a TFSA and an RRSP at the same time?
Yes. Each has its own room. Check your room for each before you contribute.
Which should I open first for my first home?
If you pass the first-time buyer test, the FHSA is built for it. Use the tool above to see why. Whether it suits you also depends on your own money, so check the CRA pages.
Is the FHSA better than the RRSP Home Buyers' Plan?
They work differently. An FHSA qualifying withdrawal is not taxed or repaid. An HBP withdrawal of up to $60,000 is repaid over 15 years. Read our comparison.
Can I take money out of a TFSA any time?
The CRA's TFSA guide says yes, with no tax. The room comes back at the start of the next year.
What are the 2026 limits?
FHSA: $8,000 a year, up to $40,000 in total. TFSA: $7,000. RRSP: a $33,810 dollar limit, and your own limit depends on your income.
Do you set an income cutoff for TFSA or RRSP?
No. We found no CRA page that sets one. A deduction can be worth more when your tax rate is higher, but that is our reasoning, not a rule.