Savings Boost: IRS Raises HSA Contribution Limits for 2026

Employees will be able to contribute a bit more money to their health savings accounts (HSAs) in 2026, the IRS announced.

Each year, the Service makes inflation-based adjustments to HSA contribution limits.

HSA Contribution Limits Announced

Here are the HSA contribution limits for 2026. Importantly, any employer contributions count toward the contribution limit.

• Self-only coverage: Individuals with self-only coverage will be able to contribute $4,400 in 2026, a slight bump from the $4,300 limit set for 2025.

• Family coverage: Employees with family coverage will be able to contribute $8,750 in 2026, up from $8,550 in 2025.

• Catch-up contributions: Workers aged 55 or older can make catch-up contributions. The limit for these contributions is $1,000 and remains unchanged because it is fixed by law under Section 223(b)(3).

HDHP Annual Deductibles

The Service also announced the annual deductibles for high-deductible health plans (HDHPs) in 2026.

For self-coverage only, annual deductibles must be at least $1,700, and out-of-pocket expenses cannot exceed $8,500.

For family coverage, annual deductibles must be at least $3,400, and out-of-pocket expenses cannot exceed $17,000.

Triple Tax Benefits of HSAs

Many employees have probably heard that HSAs offer triple tax benefits, but do they understand what that really means?

Under an HSA, all of the following are tax-free:

1. Contributions: The money employees contribute is a pre-tax deduction, meaning the money is taken out of their paycheck before taxes are withheld from their paycheck.
2. Investment growth: HSA funds can be invested, and that money grows tax-free.
3. Eligible distributions: Money used to pay for eligible medical expenses can be withdrawn tax-free.

Looking for more HSA help? Our HR expert contributors Itamar Romanini and Becky Seefeldt have written several articles with valuable insight:

• Smart money moves: Maximizing the tax value of an HSA
• Top 10 things HSA participants need to know
• Happy surprises: 3 ways HSAs deliver unexpected benefits for employees
• Top 9 questions about HSAs answered
• Little-known HSA requirements: Receipts and recordkeeping