The HSA limits
| 2026 self-only | 2026 family | 2027 self-only | 2027 family | |
|---|---|---|---|---|
| Maximum contribution | $4,400 | $8,750 | $4,500 | $9,000 |
| Catch-up, age 55+ | +$1,000 (not indexed) | |||
| HDHP minimum deductible | $1,700 | $3,400 | $1,750 | $3,500 |
| HDHP maximum out-of-pocket | $8,500 | $17,000 | $8,700 | $17,400 |
The limit is a combined limit: your contributions, your employer’s contributions and any other contributions to your HSA all count. If both spouses have family coverage, the family limit is shared between them; each spouse who is 55 or older can add their own $1,000 catch-up to their own account. If you are eligible for only part of the year, the general rule is to prorate the limit by the number of months you were eligible, but the “last-month rule” allows the full-year limit if you are eligible on December 1, as long as you stay eligible for a 12-month testing period. If you do not stay eligible, the amount over the prorated limit is added to your taxable income and carries a 10% additional tax.
The triple tax advantage
An HSA is the only account in the US tax code with three tax benefits: contributions are deductible (or pre-tax through payroll), growth is tax-free, and withdrawals for qualified medical expenses are tax-free. If you contribute through your employer’s cafeteria plan, the money also skips Social Security and Medicare (FICA) taxes of 7.65%, which the calculator includes in the savings when you tick the payroll box. If you contribute on your own, you take the deduction on your tax return (Form 8889) and FICA is not saved. California and New Jersey do not follow the federal treatment, so contributions are taxable for state purposes there.
Who is eligible
To contribute for a month, you must be covered by a qualifying HDHP on the first day of that month, have no other disqualifying health coverage (such as a general-purpose health FSA or a spouse’s non-HDHP plan that also covers you), not be enrolled in Medicare, and not be claimed as a dependent on someone else’s tax return. The optional check in the calculator compares the deductible and out-of-pocket maximum you enter with the minimums and maximums for the year. Some plans that are labelled “HSA-eligible” by the insurer are safe to rely on; a high-deductible plan that is not labelled as such may still fail other tests, such as paying for non-preventive care before the deductible.
Using the HSA as a long-term account
HSA money never expires and can be invested. Some people pay current medical bills from their regular budget, keep receipts, and let the HSA grow, then reimburse themselves tax-free years later for any past qualified expense, provided the expense happened after the HSA was opened. After age 65, you can withdraw for any reason without the 20% penalty (non-medical withdrawals are taxed as income, as with a traditional IRA). The growth projection in the calculator multiplies your yearly contribution plus the employer amount by the number of years at the return you choose. Fees and market volatility will make real results differ.