HSA Calculator

Updated October 2026 · 2026 HSA limits

A health savings account is the only account with three tax breaks: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical costs are tax-free too. If you can afford to pay current medical bills from your regular budget and leave the HSA invested, it becomes a powerful long-term account. With the defaults, a $5,000 balance plus $4,000 a year at a 6% return grows to about $170,565 in 20 years, and the contributions save about $20,800 in income tax at a 26% rate.

2026 HSA contribution limits

• Self-only coverage: $4,400
• Family coverage: $8,750
• Catch-up at 55 or older: an extra $1,000

You must be covered by an HSA-eligible high-deductible health plan to contribute. Employer contributions count toward the same limit.

What maxing out an HSA can build

Contributing the 2026 self-only maximum of $4,400 a year from zero, invested at 6%:

Contributions made through payroll also avoid the 7.65% Social Security and Medicare tax, which adds about $337 a year of savings at the self-only maximum. Contributions you make on your own are deductible for income tax but not for payroll tax.

The "invest and wait" strategy

There is no deadline for reimbursing yourself from an HSA. If you pay a medical bill out of pocket today and keep the receipt, you can withdraw that amount tax-free years later, after the money has grown. Many people use this to treat the HSA as a stealth retirement account:

• Pay current medical costs from your checking account.
• Invest the HSA in low-cost funds rather than leaving it in cash.
• Save digital copies of medical receipts.
• Reimburse yourself later, or use the money for medical costs in retirement, including Medicare premiums.

Rules to know

• Before 65, withdrawals for non-medical expenses are taxed and hit with a 20% penalty.
• After 65, non-medical withdrawals are taxed as income with no penalty, like a traditional IRA. Medical withdrawals stay tax-free.
• Once you enroll in Medicare you can no longer contribute, but you can keep using the balance.
• California and New Jersey don't recognize HSAs for state income tax, so residents of those states don't get the state deduction.
• The money is yours: it stays with you if you change jobs or health plans.

Deciding whether a high-deductible plan is worth it? The HDHP vs PPO calculator compares the two. For other ways to cut your tax bill through payroll, see the paycheck calculator, which handles pre-tax HSA deductions.

Frequently asked questions

Sources: IRS 2026 HSA limits (Rev. Proc. 2025-19); IRS Publication 969. Balance assumes monthly contributions and a steady return. Not tax advice.