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HSA/FSA Contribution Calculator

Tax savings from contributing to an HSA or FSA for medical expenses.

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Last reviewed 2026-08-29

About the HSA/FSA Contribution Calculator

Estimates the income-tax (and optional payroll-tax) savings from contributing to a Health Savings Account (HSA) or Health Care Flexible Spending Account (FSA) to cover expected medical expenses, using the current IRS contribution limits for each account type.

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How to use it
  1. Choose Account type — HSA or FSA.
  2. If HSA, select your HDHP coverage (self-only or family) and whether you qualify for the 55+ catch-up contribution.
  3. Enter your Expected qualifying medical expenses for the year.
  4. Enter your Planned annual contribution — it's automatically capped at the IRS limit for your account type.
  5. Enter your Marginal tax rate and whether the contribution is deducted via employer payroll (which also exempts it from FICA tax).
  6. Read your tax savings and the net cost of this year's expenses in the result panel.
Formula
Contribution limit = the IRS limit for your account type and coverage (HSA: self-only or family, plus a $1,000 catch-up if you're 55+ and not on Medicare) or the flat Health FSA limit. Effective contribution = min(your planned contribution, that limit). Combined tax rate = your marginal income-tax rate, plus 7.65% FICA if the contribution is payroll-deducted. Tax savings = effective contribution × combined rate. Net cost of this year's expenses = expected expenses − (expenses actually covered by the contribution × combined rate). Any contribution beyond this year's expenses rolls over indefinitely for an HSA, or is normally forfeited at year-end for an FSA (unless your employer offers a limited carryover or grace period).
Worked example

Expected annual qualifying medical expenses of $2,500, contributed through a Health FSA (2026 limit $3,400, so no cap applies), a 22% marginal federal tax rate, and payroll deduction (FICA-exempt): a combined 29.65% rate produces $741.25 in tax savings and a net cost of $1,758.75 for the $2,500 in expenses — versus paying the full $2,500 out of pocket with no tax benefit.

2026 IRS contribution limits
2026 IRS contribution limits
Account2026 limitCatch-up (55+)Key rule
HSA — Self-only coverage$4,400+$1,000Requires HDHP: min deductible $1,700, max out-of-pocket $8,500
HSA — Family coverage$8,750+$1,000Requires HDHP: min deductible $3,400, max out-of-pocket $17,000
Health Care FSA$3,400N/AUse-it-or-lose-it; max carryover to 2027 is $680 if employer offers it
Interpreting your result

Figures reflect the 2026 tax year IRS limits (HSA: Rev. Proc. 2025-19; FSA: Rev. Proc. 2025-32, both confirmed via IRS.gov). This tool uses a simplified combined marginal-rate calculation — it does not model state income tax (which varies, and some states, including California and New Jersey, tax HSA contributions), phase-outs, itemization interactions, or your plan's specific carryover/grace-period rules. An HSA also requires enrollment in an IRS-qualifying High-Deductible Health Plan (HDHP) — contributing to one without qualifying HDHP coverage can trigger tax penalties. An FSA's unused balance is normally forfeited at year-end ('use it or lose it') unless your employer opts into a limited carryover (2026 max $680) or a grace period — never both. Treat all output as a planning estimate, not a tax filing calculation.

Recommendations
  • An HSA's "triple tax advantage" — pre-tax contributions, tax-free growth, and tax-free qualified withdrawals — makes it worth maxing out before an FSA if you're eligible for both, since unused HSA funds never expire.
  • For an FSA, contribute closer to your expected expenses than the IRS max, since unused funds are normally forfeited at year-end unless your employer offers a limited carryover or grace period (never both).
  • Contributing via employer payroll typically exempts the amount from FICA tax too, not just income tax — check your pay stub to confirm your contribution is actually payroll-deducted rather than made directly, since only payroll deductions get that extra exemption.
Frequently asked questions
Ownership and expiration. An HSA is owned by you, funds never expire, and it's portable between jobs. A health care FSA is tied to your employer's plan year and unused funds are generally forfeited at year-end (subject to a limited grace period or carryover, not both).
See the full methodology and sources for every finance calculator
Disclaimer

Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.