FSA Tax Savings Calculator
Pick your health and dependent care FSA elections for open enrollment and see the tax you save, net of anything you'd lose to the use-it-or-lose-it rule.
FSA limits for 2026
| 2026 | 2025 | |
|---|---|---|
| Health FSA contribution | $3,400 | $3,300 |
| Health FSA carryover (if your plan allows) | $680 | $660 |
| Dependent care FSA, per household | $7,500 | $5,000 |
| Dependent care FSA, married filing separately | $3,750 | $2,500 |
The 2025 tax law raised the dependent care limit to $7,500 from 2026, the first permanent increase to the $5,000 cap set in the 1980s (2021 had a one-year bump to $10,500). It isn't indexed for inflation. Each spouse can have a health FSA of $3,400 at their own job, but the dependent care limit is shared by the household.
Tax saved by a full $3,400 health FSA
| Single filer, wages | Texas | Illinois | New Jersey |
|---|---|---|---|
| $40,000 | $668 | $836 | $668 |
| $75,000 | $1,008 | $1,176 | $1,008 |
| $120,000 | $1,008 | $1,176 | $1,008 |
Health FSA money skips federal income tax and Social Security and Medicare tax. New Jersey taxes FSA contributions in full, and Pennsylvania taxes dependent care FSA money above $5,000.
Use it or lose it
Money left in a health FSA at the end of the plan year is forfeited unless your employer offers one of two relief options, never both: a carryover of up to $680 into the next year, or a grace period of up to 2½ months to spend it. Plans can also allow a run-out period to submit last year's receipts. Estimate low if your costs are uncertain; the tax saving on a dollar is only about a quarter to a third of it, so forfeiting even a little wipes out much of the benefit.
FSA or HSA?
You can't contribute to an HSA while covered by a general health FSA, including your spouse's. With a high-deductible plan the HSA is usually better: the money never expires and can be invested. A limited-purpose FSA (dental and vision only) can be paired with an HSA. See the HSA calculator.
Frequently asked questions
What is the FSA limit for 2026?
$3,400 for a health FSA, with up to $680 carried over if your plan allows it (Rev. Proc. 2025-32). The dependent care FSA limit is $7,500 per household, or $3,750 if married filing separately, up from $5,000.
What is the FSA limit for 2027?
The IRS hasn't announced it yet. It comes with the yearly inflation adjustments, usually in October or November. The dependent care limit stays at $7,500 because it isn't indexed.
How much does an FSA save?
Your income tax rate plus 7.65% Social Security and Medicare tax, plus state tax in most states. For someone in the 22% bracket that's roughly 30 cents or more on every dollar.
Can I change my FSA election mid-year?
Only after a qualifying life event, such as marriage, a birth or adoption, or a change in employment or coverage. Otherwise the election you make at open enrollment is fixed for the plan year.