HSA Calculator: Limits and Tax Savings
Find your 2027 HSA limit ($4,500 self-only, $9,000 family) after your employer's contribution, and see how much federal, state and payroll tax you save by contributing.
HSA limits: 2026 vs 2027
| 2026 | 2027 | |
|---|---|---|
| Contribution limit, self-only | $4,400 | $4,500 |
| Contribution limit, family | $8,750 | $9,000 |
| Catch-up, age 55+ | $1,000 | $1,000 |
| HDHP minimum deductible, self-only | $1,700 | $1,750 |
| HDHP minimum deductible, family | $3,400 | $3,500 |
| HDHP out-of-pocket maximum, self-only | $8,500 | $8,700 |
| HDHP out-of-pocket maximum, family | $17,000 | $17,400 |
The IRS announced the 2027 figures in Rev. Proc. 2026-24 in May 2026, well before open enrollment, so you can set your 2027 payroll election now. Your employer's contributions count toward the same limit.
The triple tax advantage
An HSA is the only account that's tax-free three times: contributions are deducted from your income, investment growth isn't taxed, and withdrawals for qualified medical expenses are tax-free at any age. Contributions made through payroll also skip the 7.65% Social Security and Medicare tax, which a 401(k) doesn't. The money is yours to keep: unlike an FSA, nothing is forfeited at the end of the year, and it stays with you when you change jobs.
Tax saved by maxing out a 2027 self-only HSA ($4,500)
| Single filer, wages | Texas | New York | California |
|---|---|---|---|
| $50,000 | $884 | $1,127 | $884 |
| $75,000 | $1,334 | $1,577 | $1,334 |
| $100,000 | $1,334 | $1,600 | $1,334 |
| $150,000 | $1,424 | $1,690 | $1,424 |
Through payroll, standard deduction, 2026 federal brackets. California and New Jersey tax HSA contributions at the state level, so only federal and payroll taxes are saved there.
Rules that catch people out
- Medicare stops contributions. Once you enroll in any part of Medicare you can't contribute. Part A enrollment is backdated up to 6 months when you sign up after 65, so stop contributing 6 months before you apply.
- Part-year coverage is prorated by the months you're HDHP-eligible on the 1st. Under the last-month rule, being eligible on December 1 lets you contribute the full year's amount, but you must stay eligible through the following year or the extra becomes taxable plus a 10% penalty.
- Couples share the family limit and can split it any way. Each spouse who is 55 or older gets their own $1,000 catch-up, but only in an HSA in their own name.
- Deadline: contributions for a year can be made until that year's tax filing deadline (April 15), without extensions.
- Non-medical withdrawals are taxed as income plus a 20% penalty before 65. From 65 the penalty goes away, so the HSA works like a traditional IRA for non-medical spending.
New since 2026
The 2025 tax law (the One Big Beautiful Bill Act) made bronze and catastrophic plans bought on a Health Insurance Marketplace HSA-eligible from 2026, made the telehealth exception permanent, and lets you pay a direct primary care arrangement of up to $150 a month ($300 for more than one person) without losing eligibility.
Frequently asked questions
What is the HSA contribution limit for 2027?
$4,500 for self-only coverage and $9,000 for family coverage, plus $1,000 if you're 55 or older (IRS Rev. Proc. 2026-24). For 2026 the limits are $4,400 and $8,750.
Does my employer's HSA contribution count toward the limit?
Yes. Employer contributions, including money you get for wellness programs, count toward the same annual limit. Subtract them before choosing your own contribution.
Is it better to contribute through payroll?
Usually. Payroll contributions under a cafeteria plan avoid Social Security and Medicare tax (7.65%) as well as income tax. Contributions you make directly are deducted on your return (Form 8889) but still owe payroll tax.
Do HSA contributions lower state taxes?
In most states, yes. California and New Jersey don't recognize HSAs, so contributions and investment earnings are taxed by the state there. States without an income tax have nothing to save.
What happens if I contribute too much?
The excess isn't deductible and owes a 6% excise tax for each year it stays in the account. Ask your HSA provider to remove the excess and its earnings before your tax filing deadline to avoid the penalty.