HSA and FSA Contribution Limits 2026
The 2026 HSA limit is $4,400 for self-only coverage and $8,750 for a family, with $1,000 more once you turn 55. Set yours below to see your ceiling and what each pre-tax dollar actually saves you in tax.
The big 2026 change: Dependent Care FSA
The Dependent Care FSA limit had been stuck at $5,000 since 1986. For 2026 it rises to $7,500. That extra $2,500 of pre-tax room is worth roughly $940 to a household in the 24% bracket paying 6% state tax — for the same childcare you were already paying for. If your employer's open enrollment defaulted you to the old $5,000, you have to change the election yourself.
Why payroll deduction matters
Money routed through payroll skips FICA (7.65%) on top of income tax. An HSA funded by a direct deposit from your bank still gets the income tax deduction, but you pay FICA on it. For a family maxing an HSA, running it through payroll instead is worth about $670 a year.
※ Limits from IRS Rev. Proc. 2025-19 (HSA) and the 2025 tax law (Dependent Care FSA). This is an estimate, not tax advice — your marginal rate, state rules, and plan design all affect the result.
Miss open enrollment and an FSA is gone — an HSA isn't
These accounts run on completely different deadlines, and the difference decides what you can still fix. An FSA election is locked when your enrollment window closes. For the rest of the year you can only change it after a qualifying life event — marriage or divorce, a birth or adoption, a change in your or your spouse's employment, or, for dependent care specifically, a change in your provider or what they charge. Absent one of those, the number you set in the fall is the number you live with.
An HSA is not an annual election in the same sense. You can start, stop, or change your contribution during the year subject to your payroll department's schedule, and money for the 2026 tax year can be deposited right up to the 2027 filing deadline as long as you were HSA-eligible. So the practical rule is simple: get the FSA numbers right during your window, because there is no second chance — and if the HSA slipped, you still have most of a year to catch up.
Carryover, grace period, and run-out are three different deadlines
People use these interchangeably and lose money over it. Carryover moves up to $680 of unused Health FSA money into 2027, if your employer offers it. A grace period is the alternative — extra time after the plan year, up to two and a half months, to incur new expenses against last year's balance. A plan can offer one or the other, never both, and some offer neither.
The run-out period is separate from both and applies either way: a window after the plan year closes to submit claims for expenses you already incurred. Plenty of forfeited FSA money was spent correctly and simply never claimed in time.
The Dependent Care FSA is the one to watch, because it is now the largest of the three limits and gets no carryover at all — a grace period is the most it can offer, and only if your employer provides one. Whatever is left after that is forfeited, which is a real risk when the amount you elected rose from $5,000 to $7,500 but your childcare bills did not.
2026 new deductions at a glance
Four separate rules, four separate caps — you can claim more than one in the same year. The income lines are MAGI, and each one phases out at its own speed.
| Deduction | Cap | MAGI phase-out | Tax years | With standard deduction? |
|---|---|---|---|---|
| Car loan interest | $10,000 of interestSame cap whether you file single or joint | $100,000 → $150,000$200,000 → $250,000 joint−$200 per $1,000 of MAGI over the line | 2025–2028 | Yes — Schedule 1-A |
| Overtime premium | $12,500 / $25,000 jointPremium half only, not total overtime pay | $150,000 → $275,000$300,000 → $550,000 joint−$100 per $1,000 of MAGI over the line | 2025–2028 | Yes — Schedule 1-A |
| Senior (65+) | $6,000 per person$12,000 if both spouses are 65+ | $75,000 → $175,000$150,000 → $350,000 joint−6% of MAGI over the line — the steepest of the three | 2025–2028 | Yes — Schedule 1-A |
| HSA & FSA limitsYou are here | HSA $4,400 / $8,750Health FSA $3,400 · Dependent Care FSA $7,500 | No income phase-outLowers MAGI for the three abovePayroll contributions also skip FICA (7.65%) | 2026 figures, reset annually | Pre-tax payroll — separate track |
The three Schedule 1-A deductions are unavailable to married filing separately and require a valid Social Security number. Because HSA and FSA contributions come out of wages before AGI, they lower the MAGI the other three are measured against — near a threshold, a pre-tax dollar is worth more than its face value.
What to check next
A contribution limit is only worth something once the election is actually made — and the same pre-tax dollar quietly does a second job elsewhere on your return.
- None of the numbers above apply themselves. Payroll systems carry last year's election forward, which this year means quietly defaulting people to a $5,000 Dependent Care FSA when $7,500 is on the table. The checklist covers what to change, in order of money left behind. Open the enrollment checklist →
- Contributions leave your pay before federal income tax and FICA, so your paycheck drops by noticeably less than the amount you elect — the calculator above puts a figure on that gap. The take-home breakdown gives you the other half: what a salary at that level clears before any pre-tax election at all. See take-home at $100,000 →
- Every pre-tax dollar also lowers the MAGI that the three new 2025-law deductions are measured against, and they shrink at very different speeds — 6 cents per dollar for the senior deduction, 10 for overtime, 20 for car loan interest. If your income sits near any of those lines, the contribution is worth more than the tax it saves. Compare the 2026 deductions →
Frequently asked questions
What is the HSA limit for 2026, single and family?
$4,400 for self-only coverage and $8,750 for family coverage, both up from 2025. If you are 55 or older you can add a $1,000 catch-up contribution, so the ceiling becomes $5,400 or $9,750. Each spouse who is 55+ needs their own HSA to claim the catch-up separately.
What is the Dependent Care FSA limit for 2026?
$7,500. The 2025 tax law raised it from $5,000 starting in 2026, the first increase since the limit was set in 1986. It is a flat statutory amount and is not indexed to inflation, so it will stay at $7,500 until Congress changes it again. Married taxpayers filing separately are limited to $3,750 each.
How much tax does an FSA or HSA actually save me?
Contributions made through payroll deduction escape federal income tax, state income tax, and the 7.65% FICA payroll tax. Someone in the 22% federal bracket in a no-income-tax state saves 29.65 cents per dollar. In a 6% state at the 24% bracket it is 37.65 cents per dollar.
What is the FSA limit for 2026 and how much carries over?
The 2026 Health FSA limit is $3,400 per employee. Up to $680 of unused funds can carry into 2027 if your employer allows carryover. Employers may instead offer a grace period, or neither, so check your plan documents: anything above the carryover cap is forfeited.
HSA vs FSA: which is better?
They answer different questions. An HSA needs a qualifying high-deductible plan, but it holds far more money, and you can start, stop, or change contributions during the year and still fund the 2026 tax year up to the 2027 filing deadline. An FSA takes no special plan, but the election is locked at open enrollment and unused money is forfeited beyond the carryover cap.
Can I have both an HSA and a Health FSA?
Generally no. Contributing to a regular Health FSA makes you ineligible for HSA contributions, because the FSA counts as disqualifying health coverage. The exception is a limited-purpose FSA restricted to dental and vision, which can be paired with an HSA. A Dependent Care FSA is separate and can always be combined with an HSA.
What happens if I contribute over the limit?
The excess is added back to your taxable income. For HSAs there is also a 6% excise tax for every year the excess stays in the account. Withdraw the excess amount, plus any earnings on it, before your tax filing deadline to avoid the penalty.
Sources
Last verified: 2026-08-21 · We monitor official sources daily and update rates after human review of the originals.