2026 HSA limits
| Coverage | 2026 limit | Age 55 or older |
|---|---|---|
| Self-only HDHP | $4,400 | $5,400 |
| Family HDHP | $8,750 | $9,750 |
To qualify, your high-deductible health plan must have a 2026 deductible of at least $1,700 (self-only) or $3,400 (family), and out-of-pocket costs capped at $8,500 or $17,000. The $1,000 catch-up is set by law and isn't adjusted for inflation.
How the limit is calculated
Your limit = (annual limit + catch-up if 55+) × eligible months ÷ 12 − employer contributions
Tax saved = your contribution × (federal rate + state rate + 7.65% if through payroll)
Tax saved = your contribution × (federal rate + state rate + 7.65% if through payroll)
- Monthly rule. You earn 1/12 of the year's limit for each month you're HSA-eligible on the first day of the month. Covered from July 1 on? That's 6 months, so half the limit.
- Last-month rule. If you're eligible on December 1, you may contribute the full year's limit instead, but you must then stay eligible through the end of the following year (the testing period). If you don't, the extra is added to your income with a 10% additional tax. This calculator uses the monthly rule.
- Employer money counts. Everything your employer puts in, including through a cafeteria plan, is part of the same limit.
- Payroll beats doing it yourself. Through a cafeteria plan, your contributions also skip Social Security and Medicare tax. Contributions you make on your own are deducted on Form 8889 and only save income tax.
Why an HSA is "triple tax-advantaged"
- Money goes in tax-free: deducted or excluded from your pay.
- It grows tax-free: no tax on interest, dividends or gains inside the account.
- It comes out tax-free for qualified medical expenses, at any age.
After 65, you can also take money out for anything else without a penalty. It's then taxed as income, like a traditional IRA. Before 65, non-medical withdrawals are taxed plus a 20% additional tax.
Worked example
A 40-year-old with self-only coverage all year gets $500 from her employer. Her limit is $4,400 − $500 = $3,900. In the 22% bracket, contributing through payroll saves 22% + 7.65% = 29.65%, or $1,156.35, so the $3,900 really costs her $2,743.65.
When this doesn't fit
- Married with family coverage: the family limit is shared. Spouses split it equally unless they agree otherwise, and each spouse 55+ adds their own $1,000 catch-up to their own HSA.
- Medicare: from the first month you're enrolled in Medicare, your limit is $0. Applying for Social Security at 65 or later enrolls you in Part A automatically, backdated up to 6 months.
- Switching between self-only and family during the year: work out each month at its own limit and add them up. This calculator uses one coverage type for the year.
- The projection keeps 2026 limits for future years and a steady return. It doesn't include fees or medical withdrawals.
Sources
- IRS Rev. Proc. 2025-19 – 2026 HSA limits and HDHP minimum deductible and out-of-pocket maximum
- 26 U.S.C. 223 (health savings accounts) – monthly limit, $1,000 catch-up at 55, last-month rule, 20% additional tax
- IRS Publication 969 – employer contributions, Medicare, spouses, testing period
- Instructions for Form 8889 – line 3 limitation chart and worksheet
- SSA contribution and benefit base – 2026 Social Security wage base