What are the 2026 HSA contribution limits?
The IRS set the 2026 limit at $4,400 for self-only coverage and $8,750 for family coverage. Money from your employer counts toward it. If you're 55 or older at the end of the year and not on Medicare, you can add $1,000. You also need a high-deductible health plan (HDHP), which has its own limits.
| Rule | Self-only | Family |
|---|---|---|
| Contribution limit | $4,400 | $8,750 |
| Limit at 55 or older | $5,400 | $9,750 |
| Lowest HDHP deductible | $1,700 | $3,400 |
| Highest HDHP out-of-pocket | $8,500 | $17,000 |
| Pay schedule | Self-only | Family | Self-only, 55+ | Family, 55+ |
|---|---|---|---|---|
| Every other week (26) | $169.23 | $336.54 | $207.69 | $375.00 |
| Twice a month (24) | $183.33 | $364.58 | $225.00 | $406.25 |
| Monthly (12) | $366.67 | $729.17 | $450.00 | $812.50 |
A mid-year change needs care. The limit is prorated by the months you're eligible, so 3 months of self-only coverage gives $1,100. Under the last-month rule, being eligible on December 1 lets you use the full year's limit, but you must stay eligible for the testing period through the end of the next year or owe tax and a 10% additional tax on the difference. Your limit is zero from the first month you're enrolled in Medicare, even if that enrollment is backdated.
How much tax does an HSA save?
It depends on your bracket and how you contribute. Publication 969 treats salary reductions through a cafeteria plan as employer contributions, which keeps them out of income, and Publication 15-B exempts them from Social Security and Medicare tax within the limits. On your own, you deduct the contribution on your return but still pay those payroll taxes. At $85,000, that difference is $337 on $4,400.
| Wages | Federal income tax | Payroll tax | Total through payroll | Total on your own |
|---|---|---|---|---|
| $40,000 | $528 | $337 | $865 | $528 |
| $60,000 | $528 | $337 | $865 | $528 |
| $85,000 | $968 | $337 | $1,305 | $968 |
| $120,000 | $968 | $337 | $1,305 | $968 |
| $190,000 | $1,056 | $64 | $1,120 | $1,056 |
State tax is a rate you enter, because states differ. California, for one, doesn't follow the federal rule: its 2025 Schedule CA instructions say "California law does not conform" for the HSA deduction, and they send employer contributions back into state income. If that's your state, enter 0%. At the top, wages above the $184,500 wage base save only Medicare tax on the part above it.
Should I invest my HSA or spend it as I go?
If you can afford to pay medical bills from other money, leaving the HSA invested comes out ahead in this math, for one reason: growth in a regular account loses some to tax, and growth in an HSA doesn't if it goes to qualified costs. Below, the same $4,400 of pay and the same $2,000 a year of bills go three ways, with $1,525 of tax saved in the HSA paths.
| Years | HSA invested, net | HSA spent as you go, net | No HSA, net |
|---|---|---|---|
| 10 | $34,913 | $33,532 | $11,626 |
| 20 | $101,324 | $93,583 | $30,746 |
| 30 | $226,651 | $201,124 | $62,187 |
After 30 years, the invested HSA itself holds $368,727. The gap between investing it and spending it as you go is $25,527, far less than that balance suggests, since bills paid from other savings cost those savings their growth. The bigger gap is against no HSA at all: $164,464.
Publication 969 lets you take tax-free money for qualified expenses incurred after you set up the HSA, and you don't have to withdraw each year. It also says you must keep records showing the expenses were qualified and weren't paid another way, so keep your receipts.
What if I use HSA money for something else?
You pay income tax on it, plus a 20% additional tax before age 65. Taking $5,000 at age 40, at $85,000 of income and 5% state tax, costs about $2,350: $1,100 federal, $250 state, and $1,000 additional tax. You'd keep $2,650.
The additional tax doesn't apply after you turn 65, become disabled, or die. At 66, the same withdrawal costs $1,350 in income tax. After 65, you can also use an HSA for Medicare premiums, though not for Medigap. If you never have enough medical bills, an HSA works something like a traditional IRA at that point: money in before tax, taxed on the way out.
What changed for HSAs in 2026?
The 2025 tax law, Public Law 119-21, widened who can have an HSA. IRS Notice 2026-5 explains three changes.
- Bronze and catastrophic plans. For months after December 31, 2025, those available as individual coverage count as HDHPs, even if they miss the deductible and out-of-pocket tests.
- Telehealth. A plan can cover telehealth and other remote care before the deductible and still be an HDHP. This is now permanent, for plan years after 2024.
- Direct primary care. Starting in 2026, an arrangement costing up to $150 a month, or $300 for more than one person, no longer blocks you from contributing, and you can pay its fees from an HSA.
When an HSA comparison can mislead you
This tool compares taxes, not health plans. A high-deductible plan with a lower premium can cost more or less in a given year than another plan, depending on the care you use. Compare both plans' premiums and out-of-pocket costs first. Your eligibility can also end for reasons this tool doesn't check, such as other health coverage, including a general-purpose health FSA, or someone claiming you as a dependent.
Investing carries risk, and accounts can charge fees. If you can't pay a bill without the HSA, use the HSA. A tax professional can help with a mid-year change or a spouse's coverage. For how the deduction fits your return, read how federal income tax works, and see the effect on your check with the salary and paycheck calculator.
Common questions
How much should I contribute to my HSA?
Enough to cover the bills you expect, if that's all you can do. Beyond that, it depends on your budget and other goals, such as any employer match in a 401(k), which the 401(k) calculator shows.
Does an employer contribution count toward the limit?
Yes. Your own contributions and your employer's add up to one limit. Subtract what your employer puts in to find what you can add. Going over generally means a 6% excise tax each year the excess stays in the account.
What if my spouse and I both have HSAs?
If you're both eligible and either of you has family coverage, you share the family limit and split it as you agree, or equally if you don't. If both of you are 55 or older and not on Medicare, each can add $1,000, but each needs an HSA of your own for that.
Can I contribute after age 65?
Age alone doesn't stop you. Medicare enrollment does. Your limit becomes zero starting with your first enrolled month, and retroactive coverage can turn past contributions into excess ones. Publication 969 gives the details.
Do I need to spend the money by the end of the year?
No. Publication 969 says what remains in an HSA at the end of the year generally carries over, and you don't have to make withdrawals each year.
Sources
- Revenue Procedure 2025-19 · Internal Revenue Service
- Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans · Internal Revenue Service
- Notice 2026-5: Expanded Availability of Health Savings Accounts · Internal Revenue Service
- Publication 15-B (2026): Employer's Tax Guide to Fringe Benefits · Internal Revenue Service
- 2025 Instructions for Schedule CA (540) · California Franchise Tax Board