Calculator
FSA tax savings calculator
Money set aside in an FSA skips federal income tax, Social Security and Medicare tax, and in most states state income tax.
2026 FSA tax savings$3,777on $10,900 set aside, at 34.65% combined tax
| Health FSA (limit $3,400) | $3,400 |
|---|---|
| Dependent care FSA (limit $7,500) | $7,500 |
| Federal income tax saved | $2,398 |
| State income tax saved | $545 |
| Social Security + Medicare saved (7.65%) | $834 |
| Total tax savings | $3,777 |
| Health FSA carryover allowed into next year | up to $680 (if your plan offers it) |
Use-it-or-lose-it: health FSA money left after the plan’s grace period or carryover is forfeited. A few states (for example New Jersey and Pennsylvania) tax some FSA contributions; enter 0 for state tax if yours does.
The link keeps your inputs, so you can save or share this scenario.
2026 FSA limits compared with 2025 and 2027
For 2026 you can put up to $3,400 into a health flexible spending account and carry up to $680 into the next plan year[rp2532]; the dependent care FSA limit rose to $7,500 per household[p15b]. The 2027 health FSA limit is $3,500 with a $700 carryover[rp2635].
| Limit | 2025 | 2026 | 2027 |
|---|---|---|---|
| Health FSA salary reduction | $3,300 | $3,400 | $3,500 |
| Health FSA carryover (if the plan allows) | $660 | $680 | $700 |
| Dependent care FSA, per household | $5,000 | $7,500 | $7,500* |
| Dependent care FSA, married filing separately | $2,500 | $3,750 | $3,750* |
The 2025 health FSA figures come from Revenue Procedure 2024-40[rp2440], and the 2025 dependent care limit of $5,000 from Publication 503[p503]. * The dependent care limit is set in the law, not indexed, and no 2027 IRS document has restated it yet, so $7,500 for 2027 assumes no change. The health FSA limit is per employee: two spouses with their own employer plans can each elect $3,400.
HSA contribution limits 2025, 2026 and 2027
A health savings account has higher limits than an FSA and the money never expires, but you need a high-deductible health plan: for 2026 the HSA limit is $4,400 for self-only coverage and $8,750 for family coverage[rp2519]. The HSA contribution limit for 2025 was $4,300 and $8,550[rp2425]; for 2027 it is $4,500 and $9,000[rp2624].
| Item | 2025 | 2026 | 2027 |
|---|---|---|---|
| HSA limit, self-only | $4,300 | $4,400 | $4,500 |
| HSA limit, family | $8,550 | $8,750 | $9,000 |
| Catch-up, age 55+ | $1,000 | $1,000 | $1,000 |
| HDHP minimum deductible, self / family | $1,650 / $3,300 | $1,700 / $3,400 | $1,750 / $3,500 |
| HDHP out-of-pocket maximum, self / family | $8,300 / $16,600 | $8,500 / $17,000 | $8,700 / $17,400 |
A general-purpose health FSA (yours or your spouse's) makes you ineligible to contribute to an HSA for those months; a limited-purpose FSA for dental and vision does not[p969].
Worked example: the tax saved by maxing both FSAs
A parent in the 22% federal bracket with 5% state income tax elects the full $3,400 health FSA and $7,500 dependent care FSA for 2026:
- Total set aside: $3,400 + $7,500 = $10,900.
- Combined tax rate avoided: 22% + 5% + 7.65% Social Security and Medicare = 34.65%.
- Tax saved: $10,900 × 34.65% = $3,777 for the year, as long as the money is spent on eligible expenses.
The $2,500 increase in the dependent care limit alone is worth $866 at that rate. Money in an FSA you don't spend is lost, unlike retirement money; to compare with retirement saving, see the 2026 contribution limits table and the 401(k) calculator.
Rules that decide how much to elect
- Use it or lose it. FSAs are generally use-it-or-lose-it, but a plan can offer either a grace period of up to 2½ months after the plan year or a carryover (up to $680 from 2026), not both[p969].
- Health FSA money is available on day one. The whole annual election can be used early in the year, even before it is deducted from pay.
- Dependent care is paid as you go. You can only be reimbursed up to what has been deducted so far.
- Elections are fixed. You choose during open enrollment and can change only after a qualifying life event.
Common mistakes with FSA limits
- Doubling the dependent care limit for two parents. $7,500 is per household on a joint return, not per parent.
- Counting the carryover against the new limit. A carryover of $680 from 2026 does not reduce your $3,500 election for 2027.
- Pairing a regular FSA with an HSA. It blocks HSA contributions; check before you elect.
- Thinking FSA money is retirement money. It isn't invested and doesn't grow. Long-term tax-free saving goes in an HSA, IRA or 401(k): see the IRA limits and 401(k) limits.
Medicare and HSAsOnce you enroll in Medicare you can no longer contribute to an HSA, though you can spend what is in it, including on Medicare Part B premiums.
Frequently asked questions
What is the FSA limit for 2026?
$3,400 for a health FSA, up from $3,300, with a carryover of up to $680 into 2027 if the plan allows. The dependent care FSA limit is $7,500 ($3,750 married filing separately).
What are the 2026 dependent care FSA limits?
$7,500 per household, or $3,750 for married people filing separately. The limit was $5,000 through 2025 and was raised starting in 2026.
What are the flexible spending account limits for 2027?
$3,500 for a health FSA with a $700 carryover (Rev. Proc. 2026-35). The dependent care limit is expected to stay $7,500, since it is not indexed.
What was the HSA contribution limit for 2025?
$4,300 for self-only coverage and $8,550 for family coverage, plus $1,000 at 55 and older. For 2026 it is $4,400 and $8,750.
Can I have both an FSA and an HSA?
Only a limited-purpose FSA (dental and vision) or a post-deductible FSA. A general-purpose health FSA makes you ineligible to contribute to an HSA.
Sources
- Revenue Procedure 2025-32 (2026 inflation adjustments, health FSA)
- Revenue Procedure 2026-35 (2027 inflation adjustments, health FSA)
- Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits (dependent care assistance $7,500)
- Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans
- Revenue Procedure 2025-19 (2026 HSA limits)
- Revenue Procedure 2026-24 (2027 HSA limits)
- Revenue Procedure 2024-40 (2025 inflation adjustments, health FSA)
- Revenue Procedure 2024-25 (2025 HSA limits)
- Publication 503 (2025), Child and Dependent Care Expenses