HSA and FSA Calculator

HSA and FSA Limits for 2026

An HSA requires a high-deductible health plan. The IRS sets the HSA limits in Revenue Procedure 2025-19.

HSA vs FSA

• Ownership: the HSA belongs to the employee and stays after a job change; the FSA belongs to the employer plan.
• Eligibility: the HSA needs a high-deductible health plan; the FSA needs only an employer that offers one.
• Rollover: the HSA balance rolls over and can be invested; the FSA mostly expires at year end.
• Tax: both skip income tax and FICA through payroll. HSA withdrawals for medical costs are tax-free.

How HSA Tax Savings Are Calculated

Tax saved = Contribution × (Federal marginal rate + 7.65% FICA + State rate)

California and New Jersey tax HSA contributions at the state level. The Payroll Deduction Calculator shows the HSA on a full pay stub.

Health FSA Tax Savings Example

A health FSA saves the same taxes per dollar as an HSA through payroll, but its 2026 limit is lower at $3,400.

Putting the full $3,400 into a health FSA on a $65,000 salary saves $668.10 of tax for a single filer in Texas: $408 of federal income tax and $260.10 of Social Security and Medicare. Take-home pay drops by only $2,731.90 for $3,400 of medical spending money.

The saving only holds if you spend the money. Elect what you expect to use on deductibles, prescriptions, dental and vision costs.

HSA Catch Up Contributions at 55

From the year you turn 55, the HSA limit rises by $1,000, to $5,400 with self-only coverage or $9,750 with family coverage in 2026.

A single 55-year-old on $65,000 in Texas who contributes the full $5,400 saves $1,061.10 of tax a year while putting $207.69 into the HSA each biweekly paycheck. Tick "Age 55 or older" in the calculator to raise the limit.

When both spouses are 55 or older, each needs an HSA in their own name to make a catch-up contribution.

HSA Tax Savings by State

State income tax adds the state rate on top of the federal and FICA savings in most states, and nothing in states with no wage tax.

The calculator applies the state rate to the contribution. In California and New Jersey, which tax HSA contributions, enter 0% as the state rate to see the federal and FICA savings alone.

HSA Contributions per Paycheck

To reach the yearly limit through payroll, divide the limit by your paychecks in the year, after taking off any employer contribution.

Employer HSA contributions count toward the same limit. With a $500 employer deposit, a self-only worker can add $3,900 more, or $150 a biweekly paycheck. HSA contributions for a year can still be made until the tax filing deadline in April of the next year.

HSA Withdrawals and the 20% Penalty

HSA money spent on qualified medical expenses comes out tax-free at any age. Money spent on anything else is taxed as income and, before age 65, also owes a 20% additional tax.

• Before 65: a $1,000 non-medical withdrawal owes income tax plus $200 of penalty.
• From 65: non-medical withdrawals owe income tax only, like a traditional IRA.
• Medicare: once you enroll in Medicare, new HSA contributions stop, but you can keep spending the balance.

Keep receipts. A qualified expense from any year after the HSA was opened can be reimbursed later, tax-free.

FSA Rules: Uniform Coverage and Year End Deadlines

A health FSA makes the full yearly election available from the first day of the plan year, even though you pay it in over the year. This is the uniform coverage rule.

The trade-off is the deadline. Money not used by the end of the plan year is lost unless the plan offers either a grace period of up to 2½ months or a limited carryover; a plan can offer one or neither, not both. Your election can change during the year only after a qualifying life event such as marriage, a birth or a change in coverage.

A dependent care FSA follows separate rules and a $7,500 limit. The Child Tax Credit Calculator covers the child credits that sit beside it.

Frequently Asked Questions

How much can I put in an HSA in 2026?

You can put $4,400 with self-only coverage or $8,750 with family coverage into an HSA in 2026, plus $1,000 from age 55.

How much tax does an HSA save?

An HSA saves your marginal income tax rate plus 7.65% FICA plus your state rate on every payroll dollar. $3,000 saves $589.50 for a single filer earning $65,000 in Texas.

Can I have an HSA and an FSA?

Yes, with a limited-purpose FSA for dental and vision costs. A general health FSA makes a person ineligible to contribute to an HSA.

Which saves more tax, an HSA or an FSA?

Per dollar, they save the same tax through payroll. The HSA can save more in total because its limit is higher: $864.60 at $4,400 against $668.10 at the $3,400 FSA limit for the same $65,000 single filer.

Do employer HSA contributions count toward the limit?

Yes. Employer and employee HSA contributions share one yearly limit: $4,400 self-only or $8,750 family in 2026.

Can I change my HSA contribution during the year?

Yes. You can change HSA payroll contributions at any time the employer allows. A health FSA election changes only after a qualifying life event.

What happens to my HSA if I change jobs?

Nothing is lost. The HSA belongs to you, so the balance stays yours and can move to a new HSA provider.

Can I contribute to an HSA after enrolling in Medicare?

No. Contributions stop once Medicare coverage begins, but you can keep using the balance for medical costs.