In 2023, a total of 484,320 tax filers reported contributing to an FHSA, with a median contribution of $8,000—the maximum allowed for the year.
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.
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.
Financial author David Chilton, best known for The Wealthy Barber, has called the FHSA “the greatest deal in the history of Canadian savings,” and urged prospective first-time buyers to take full advantage of its unique dual tax benefits.
For a complete rundown on the FHSA, click here.
TFSA continues to outpace RRSPs
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.
In 2023:
- 7.5 million tax filers contributed to a TFSA.
- The median contribution was $6,500, matching the 2023 annual limit.
- Half of TFSA contributors had incomes under $60,000, with nearly two-thirds earning under $80,000.
- TFSA usage remained strong even among older Canadians—2.3 million people aged 65 and over made contributions.
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.
RRSP contributors tended to skew older and higher income:
- 54% had incomes over $80,000.
- The largest share of contributions came from those aged 45 to 64.
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—from just $1,060 among those earning under $20,000, to $6,810 among those earning $80,000 or more.
| Feature | RRSP | TFSA | FHSA |
|---|---|---|---|
| Annual contribution limit | 18% of income (max $31,560 in 2024) | $6,500 | $8,000 |
| Lifetime contribution limit | No limit | Cumulative since 2009: $88,000 | $40,000 |
| Tax-deductible contributions | ✔️ Yes | ❌ No | ✔️ Yes |
| Tax-free growth | ✔️ Yes | ✔️ Yes | ✔️ Yes |
| Tax-free withdrawals | ❌ No (unless for HBP*) | ✔️ Yes | ✔️ Yes (if for first home) |
| Withdrawal conditions | Taxed unless using Home Buyers’ Plan | Anytime, any reason | Must be for first home purchase |
| Best suited for | Retirement savings | General savings/investments | First-time homebuyers |
*HBP = Home Buyers’ Plan allows up to $35,000 RRSP withdrawal for first home, repayable over 15 years.
Usage patterns reveal generational and income divides
Among working-age Canadians (25 to 64), both RRSP and TFSA contribution medians tended to increase with age.
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.
The FHSA, by contrast, was almost entirely driven by younger contributors, with negligible usage among those aged 45 and up.
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Last modified: April 10, 2025