A health savings account (HSA) can make medical care a lot more affordable. HSAs have what's often referred to as a triple-tax advantage:

1. You save pretax money.

2. Your money grows tax-free.

3. Your withdrawals can be tax-free.

HSA contribution limits are increasing in 2026. Let's take a look at these increases, the rules, and the types of health plans that are HSA-compatible, as well as some factors to consider as you shop for health insurance.

Learn more: What is a health savings account (HSA) ?

2025 and 2026 HSA rules

HSAs are accounts that allow you to pay for out-of-pocket healthcare costs using pretax dollars. Any money you withdraw for qualified medical expenses is also tax-free, but if you take an HSA distribution that isn't healthcare-related, you'll get hit with a 20% penalty on top of income taxes.

If you wait until you're 65, you can withdraw HSA money for any purpose — but if it isn't for a medical expense, you'll still owe ordinary income taxes.

Overall, the tax benefits of an HSA are more generous than those of a retirement account, like a 401(k) or individual retirement account (IRA). So, it's not surprising that the IRS limits how much you can contribute to an HSA annually.

Learn more: HSA vs. HYSA: Which option is better for saving for medical expenses ?

2025 and 2026 HSA contribution limits

If you're 55 or older, your HSA annual contribution limits are higher because you're allowed to make an extra catch-up contribution. In 2025 and 2026, the HSA catch-up contribution is $1,000.

HSA contribution eligibility requirements

These contribution limits only apply if you are eligible. To contribute to an HSA, you must:

1. Be enrolled in an HSA-eligible plan

2. Not have a general purpose flexible spending account (FSA)

3. Not be enrolled in Medicare

4. Not be claimed as a dependent on someone else's tax return

Learn more: How to save $1 million: Use your Health Savings Account

How employer HSA contributions work

Many employers that offer HSAs make a contribution on workers' behalf. If your employer offers this benefit, it's important to know that their contribution counts toward your annual limit.

Say, for example, you're 45 years old with self-only coverage. If your employer contributes $500 in 2026, you'll only be able to contribute $3,900 to your HSA — not the full $4,400.

Learn more: How much can you contribute to your 401(k)?

2025 and 2026 high-deductible health plan minimums

The health plans that make you eligible to contribute to an HSA are called high-deductible health plans (HDHP). These must meet deductible and maximum out-of-pocket limit thresholds. You can purchase an HDHP on your own or select one (if it's offered) during annual enrollment with your employer.

Some services that are considered preventative care under the Affordable Care Act – like certain screenings and immunizations – must typically be provided at no charge before your deductible. But aside from preventive care, a high-deductible health plan won't start to pay for services until you've hit your deductible for the year.

The 2025 and 2026 HDHP minimum deductibles and maximum out-of-pocket limits are listed below. Note that the minimum deductible is the lowest annual deductible a plan can require to be considered an HDHP that's compatible with a health savings account. The out-of-pocket limit is the annual maximum amount your insurer can require you to pay before it pays for 100% of services.

2025 and 2026 HDHP limits

Here's an example of how an HDHP works with an HSA: Let's say you have a self-only high-deductible health plan, and your deductible is $2,000. You also have $3,000 tucked away in an HSA.

If you visited your primary care doctor for a checkup and routine screenings, you likely wouldn't be charged because insurers generally have to cover preventative care. If you visited the doctor because you felt sick or filled a prescription, though, you'd have to pay out of pocket until you reached your $2,000 deductible. But you could use the HSA money you saved pretax to cover those expenses.

There are rules for what expenses are HSA-eligible set by the Internal Revenue Service, but they broadly include costs for diagnosing and treating diseases and injuries, as well as medical equipment and supplies. HSAs cannot be used to pay for health insurance premiums (though they can be used for some Medicare premiums) or for non-specific health products such as vitamins.

Learn more: How much does a financial advisor cost ?

What if I have HSA money left over at the end of the year?

One nice thing about HSAs is that you don't forfeit unused funds at the end of the calendar year. If your medical expenses are relatively low in one year, the money will still be there for you to use later. The money stays with you if you lose your job or change employers. You can even earn interest on it or invest it, though your options will vary depending on your HSA provider.

Once you're 65, you can withdraw HSA money for any purpose without incurring the 20% penalty that usually applies to non-medical withdrawals. However, you can avoid paying taxes on your distributions if you use that money for healthcare.

For that reason, an HSA is a smart retirement-planning tool that can help you shoulder health-related costs in your senior years, provided that you don't need the money sooner. Some people choose to save extra money in their HSA when they're already contributing up to the 401(k) limits and IRA limits .

When is the deadline to max out your HSA?

If you don't max out your HSA before the new year, you still have time. The deadline for HSA contributions is the filing deadline for the tax year. In other words, you have until April 15, 2026, to make your 2025 HSA contribution. You can fund your HSA for 2026 any time before April 15, 2027.

Learn more: Retirement planning: A step-by-step guide

HSA contribution limits FAQs

What is the maximum HSA contribution for 2025?

The maximum HSA contribution in 2025 is $4,300 for self-only coverage and $8,550 for families, plus an additional $1,000 if you're 55 or older. These limits are $150 higher for self-only coverage and $250 higher for family coverage than the 2024 limits.

What is the maximum HSA contribution for 2026?

The maximum HSA contribution in 2026 is $4,400 for self-only coverage and $8,750 for families. If you're 55 or older, you are allowed to contribute an extra $1,000, bringing the limit to $5,400 for self-only coverage and $9,750 for families. Relative to 2025, the self-only limit is $100 higher and the family limit is $200 higher.

Can I make HSA contributions on my own?

Yes, you can make HSA contributions even if your employer doesn't offer one by opening an account through a financial institution. However, to be eligible to fund an HSA, you must be enrolled in a high-deductible health plan.

How much should I contribute to my HSA from my paycheck?

If you're paid biweekly and you are younger than 55, the most you can contribute to your HSA is $169.23 if you have self-only coverage or $336.54 if you have family coverage. Your maximum contribution will be less if your employer contributes to your HSA. Contributing up to the limit is a smart goal, but before you max out your HSA, make sure you have at least a three- to six-month emergency fund and that you're saving for retirement.

What's the difference between HSAs, FSAs, and HRAs?

First, FSAs, or flexible spending accounts. These are fringe benefits offered by many employers that allow you to contribute funds for health or dependent care expenses pretax. But unlike HSA money, there's no rollover with FSA funds. They must be used by year-end (or a predetermined deadline a few months into the next year.) General purpose FSAs can be used for a wide variety of health expenses, including over-the-counter medications. Limited purpose FSAs only allow the funds to be used for dental and vision expenses.

You cannot contribute to an HSA and a general purpose FSA in the same year. You can contribute to an HSA while you contribute to a limited purpose FSA, however.

An HRA, or health reimbursement arrangement, is a pot of money you can use for health costs, but it's funded entirely by your employer. Not all employers offer them, of course, and you can't add any of your own money. You may be able to roll over unused funds at the end of the year (that's up to your employer), but you can't take the money with you if you leave your job.

You can have an HSA and an HRA at the same time, but the IRS has strict rules on how you use the funds from each.

Tim Manni edited this article.