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Flexible SpendingHealth · DCFSA · LP-FSA2026 LimitsFree

FSA Calculator 2026

Estimate tax savings from a Flexible Spending Account — Health FSA ($3,400), Dependent Care FSA ($7,500), or LP-FSA ($3,400). Includes spend-down tracker and FSA vs HSA comparison. No HDHP required.

Flexible Spending
Health · DCFSA · LP-FSA
2026 Limits

By Sammy S. · Founder · AuthorUpdated for 2026

How it works

1

Pick FSA type

Health FSA, Dependent Care FSA, or LP-FSA (dental/vision with an HSA).

2

Enter contribution & bracket

Set annual election, federal marginal rate, and pay frequency. Toggle self-employed or MFS if needed.

3

See savings & spend-down

Instant tax + FICA savings, per-paycheck cost, and daily/weekly targets to avoid forfeiture.

How to use this FSA calculator

Choose Health FSA, Dependent Care FSA, or Limited-Purpose FSA, enter your planned contribution and federal tax bracket, then set pay frequency. The calculator estimates income-tax savings plus FICA savings when you contribute via payroll, and includes a spend-down tracker so you don’t forfeit unused funds.

Your inputs

Type, contribution, bracket & pay frequency

Pay for most medical, dental, and vision expenses. Use-it-or-lose-it (with optional carryover/grace period).

Max: $3,400
$

100% of 2026 limit

Plan year-end option

Ask your employer — they choose one (not both).

Spend-down tracker

Enter balance and days left to see daily/weekly spend targets before forfeiture.

$

Real cost after FSA

At your 22% bracket + 7.65% FICA, common expenses after savings:

Prescriptions

Typical: $50

$35.18

saves $14.83

Doctor copay

Typical: $30

$21.11

saves $8.90

Dental work

Typical: $250

$175.88

saves $74.13

Glasses / contacts

Typical: $200

$140.70

saves $59.30

Physical therapy

Typical: $75

$52.76

saves $22.24

Lab tests

Typical: $80

$56.28

saves $23.72

Mental health visit

Typical: $150

$105.53

saves $44.47

Chiropractic care

Typical: $60

$42.21

saves $17.79

OTC medications

Typical: $25

$17.59

saves $7.41

Menstrual products

Typical: $15

$10.55

saves $4.45

First aid supplies

Typical: $40

$28.14

saves $11.86

Blood pressure monitor

Typical: $45

$31.66

saves $13.34

Estimated annual tax savings

Income tax + FICA (payroll) at 22% bracket

$1,008

Your $3,400 contribution effectively costs $2,392 after tax savings.

$748

Income tax

$260

FICA saved

$2,392

Net cost

$92.00

Per check

29.7% effective discount on eligible expenses

2026 limit check

Health FSA

Annual limit$3,400
Your contribution$3,400
Effective after-tax cost$2,392
2026 FSA limits
IRS Rev. Proc. 2025-32 & OBBA
Health FSA$3,400/yr
Up from $3,300 in 2025
Dependent Care FSA$7,500/yr
$3,750 if married filing separately · employer must opt in
Limited-Purpose FSA$3,400/yr
Dental & vision only; pairs with HSA
Max carryover$680/yr
Health FSA only, if employer allows
Use-it-or-lose-it

Unspent Health FSA funds are forfeited at plan year end unless your employer offers carryover (up to $680) or a 2.5-month grace period — not both.

Dependent Care FSA: always use-it-or-lose-it.

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The use-it-or-lose-it rule — and how to avoid forfeiting your FSA funds

Americans forfeit hundreds of millions of dollars in FSA funds each year. The default rule is simple: any money left in your Health FSA at the end of your plan year goes back to your employer. You never get it back. But there are two employer-optional relief mechanisms — and only one can apply per plan year:

Carryover (IRS Notice 2013-71)
Roll up to $680 of unused Health FSA funds into the next plan year. Any amount above the limit is still forfeited. This option coexists with HSA eligibility under certain conditions.
Grace period (Reg. §1.125-1)
Spend FSA funds up to 2½ months after the plan year ends (March 15 for calendar-year plans). The entire balance is still at risk — just more time to spend it. Cannot be combined with carryover.
Neither (default)
All unspent funds are forfeited on Dec 31 (or your plan year end date). If your employer offers no relief option, contribute conservatively — estimate only the expenses you're near-certain to have.

Dependent Care FSA: always use-it-or-lose-it. No carryover or grace period option.

FSA vs HSA — which is right for you?

Both accounts reduce your taxable income and save FICA via payroll deduction. The key difference: HSAs are only available with a High-Deductible Health Plan (HDHP) but have no use-it-or-lose-it rule and allow investment growth. FSAs work with any health plan but require planning to avoid forfeiting funds.

FeatureHealth FSALP-FSADCFSAHSA
Requires HDHP?NoNo (+ HSA)NoYes
2026 annual limit$3,400$3,400$7,500$4,400 / $8,750
Use-it-or-lose-it?YesYesAlways yesNo — rolls over forever
Carryover option?Up to $680Up to $680NoneUnlimited
Investment growth?NoNoNoYes
FICA savings?YesYesYesYes
Covers medical?YesDental/vision onlyNoYes
Covers childcare?NoNoYesNo

Quick rule: If your employer offers an HDHP with HSA — open an HSA and an LP-FSA. If you're on a traditional health plan, open a Health FSA. If you have children in daycare or elderly dependents, add a Dependent Care FSA.

4 reasons to choose an FSA — even if you could open an HSA

An HSA's triple tax advantage gets all the attention, but FSAs have unique structural benefits that make them the better choice in specific situations — and not just as a consolation prize for non-HDHP enrollees.

No HDHP required
Any group health plan qualifies. You don't need to switch to a high-deductible plan to access an FSA. This makes FSAs accessible to the majority of employer-sponsored plan participants who are on PPO or HMO plans.
Full balance available on January 1
Your entire annual election is available on the first day of the plan year. Incur a $3,400 medical expense in January and leave your job in March? You've already spent pre-tax money you hadn't yet contributed — the employer absorbs the shortfall risk.
Employer can seed your account
Employers can contribute directly to your FSA — a benefit that doesn't require HDHP enrollment. Some employers contribute $500–$1,500/year to offset premiums or encourage FSA participation.
Dependent Care FSA has no HSA equivalent
The DCFSA is entirely unique — there's no HSA equivalent for childcare or elder care expenses. Working parents with $7,500 in childcare costs can save $2,600+ annually in taxes with a DCFSA, regardless of their health plan type.

Dependent Care FSA — now up to $7,500 for 2026

The DCFSA limit jumped to $7,500 (from $5,000) starting January 1, 2026 under the One Big Beautiful Bill Act — employers must amend their plan to offer the higher limit. At a combined federal + state + FICA marginal rate of 35%, a full $7,500 DCFSA saves roughly $2,625 in taxes. Married filing separately: each spouse's DCFSA is limited to $3,750.

One important interaction: the DCFSA and the Child and Dependent Care Tax Credit (CDCTC) cover the same expenses. You can't use both for the same dollar of care. Recommended strategy: use the DCFSA for the first $7,500 in eligible care, then claim the CDCTC for any remaining eligible expenses above that.

Childcare / daycare
Any licensed provider watching your child under 13 while you work.
After-school programs
Before/after school care for children under 13. Sports leagues or academic tutoring don't qualify.
Summer day camp
Day camps qualify. Overnight camps do not. Specialized camps (sports, STEM) generally qualify.

2026 FSA contribution limits

IRS-published limits per Rev. Proc. 2025-32, effective January 1, 2026.

Account type20252026Notes
Health FSA$3,300$3,400Max carryover: $680
LP-FSA$3,300$3,400Dental & vision only; use with HSA
DCFSA (single / MFJ)$5,000$7,500OBBA (Jul 4, 2025); employer must opt in
DCFSA (married filing separately)$2,500$3,750Per spouse
Health FSA carryover$660$680If employer allows; not for DCFSA

The uniform coverage rule — Day 1 access to your full election

Under the uniform coverage rule (Prop. Treas. Reg. §1.125-5), your full Health FSA annual election is available on the first day of the plan year — even before a single paycheck has been deducted. If you spend your full $3,400 election in January and leave in February, your employer legally cannot claw back the unpaid portion without jeopardizing the plan's tax-qualified status under IRC §106.

Employee wins
Spend early, leave early
You elect $3,400. Have major dental work done in January (Day 1 access). Leave in March after contributing only $850. Employer absorbs the $2,550 shortfall — you keep the tax benefit.
Employer wins
Leave with unspent balance
You elect $3,400, contribute $2,125 by June, but leave with $1,500 remaining. You forfeit the unspent balance unless you elect COBRA for the FSA (often not worth the after-tax cost).
Asymmetric rule
DCFSA is different
Dependent Care FSA gives you access only to what you've actually contributed — no Day 1 full-balance access. If you've contributed $1,000, you can only claim $1,000 in DCFSA reimbursements.

Practical strategy: Schedule expensive planned procedures — LASIK, orthodontia, dental implants — in January when you have access to the full election. Submit all claims before your last day if you change jobs mid-year.

FSA-eligible items most people pay for with after-tax dollars by mistake

IRS Publication 502 is the definitive list. Common categories where people leave money on the table:

Commonly missed — ARE eligible

  • Sunscreen (SPF 15+) — any brand, no Rx needed
  • OTC reading glasses — drugstore or online
  • Pregnancy tests and ovulation prediction kits
  • Breast pumps, accessories, and breast milk storage bags
  • CPAP machines, masks, and replacement supplies
  • Blood glucose monitors and test strips (no Rx required)
  • Blood pressure monitors and cuffs
  • Menstrual care products — pads, tampons, cups (since CARES Act 2020)
  • Dental sealants and fluoride treatments
  • Contact lens solution and eye drops

Commonly assumed — NOT eligible

  • Gym memberships or fitness equipment
  • Teeth whitening products or services
  • Cosmetic surgery (elective aesthetics)
  • General vitamins and supplements (unless prescribed by doctor)
  • Diet foods, organic food, or nutritional supplements
  • Toothbrushes, toothpaste, dental floss (general hygiene)
  • Shampoo, soap, or other toiletries
  • Nicotine patches or gum — PARTIALLY eligible (prescription required for coverage)
  • Concierge medicine subscriptions that function like insurance
  • Overnight summer camp for children (DCFSA doesn't cover)

Year-end spend-down tip: Before Dec 31, stock up on non-perishable eligible items — sunscreen, OTC medications, contact solution, blood pressure monitors — rather than forfeit your balance.

Dual-FSA household strategy — maximizing when both spouses work

Two-income households can multiply FSA tax savings by coordinating elections across both employers:

FSA typePer spouse limitHousehold maxRule
Health FSA$3,400$6,800Each spouse's limit is independent — no household cap
LP-FSA (with HSA)$3,400$6,800Each spouse with HSA can pair an LP-FSA
DCFSA$7,500$7,500 totalHousehold limit — not per spouse; $3,750 each if MFS

Dual Health FSA savings example

Both spouses in 22% bracket, each elects $3,400 Health FSA. Combined: $6,800 × 22% income tax ($1,496) + $6,800 × 7.65% FICA ($520) = $2,016 total tax savings for the household in 2026.

Split-plan strategy

Spouse A enrolls in HDHP → HSA + LP-FSA. Spouse B enrolls in PPO → Health FSA. Each maximizes their plan's tax benefits independently. Source: IRC §129; IRS Pub. 969.

Common eligible expenses

Prescriptions & OTC medications
Doctor copays & lab tests
Dental work (cleanings, fillings)
Glasses, contacts, eye exams
Physical therapy & chiropractic
Mental health visits
Childcare & after-school (DCFSA)
Laser eye surgery (LP-FSA eligible)

Carryover max (Health FSA): $680 if your employer allows it.

Frequently Asked Questions
2026 limits, FICA, FSA vs HSA, uniform coverage, DCFSA, and eligible expenses.

The Health FSA and Limited-Purpose FSA limit is $3,400 for 2026 (up from $3,300 in 2025) per IRS Rev. Proc. 2025-32. The Dependent Care FSA limit is $7,500 per household ($3,750 if married filing separately) under the One Big Beautiful Bill Act — employers must opt in to the higher limit. Max Health FSA carryover is $680.

Yes — FSA contributions made through your employer's Section 125 cafeteria plan are excluded from Social Security and Medicare wages under IRC §3121(a), saving you 7.65% in FICA on top of income tax savings. Your employer also typically saves their matching 7.65% FICA. Self-employed individuals cannot use Section 125 plans and do not get this FICA benefit.

Generally no. A general-purpose Health FSA makes you ineligible for an HSA. The exception is a Limited-Purpose FSA (LP-FSA), which covers only dental and vision and can coexist with an HSA. If you want an HSA, enroll in an LP-FSA instead of a Health FSA.

Unspent Health FSA funds are forfeited unless your employer offers (1) a carryover of up to $680 or (2) a 2.5-month grace period — not both. Dependent Care FSA funds are always forfeited — no carryover or grace period. Use the spend-down tracker above for daily/weekly targets.

Yes — since the CARES Act of 2020, OTC medications no longer require a prescription to be FSA-eligible. This includes cold/flu medicine, pain relievers, antacids, allergy medicine, sleep aids, and many others. Menstrual care products (pads, tampons, cups) are also permanently FSA-eligible.

A Health FSA covers medical, dental, and vision expenses for you and your dependents. A Dependent Care FSA covers childcare, after-school care, summer day camps, and elder care so you can work. Different eligible expenses, different limits ($3,400 vs $7,500), and you can hold both if your employer offers both.

Generally no — FSA elections are irrevocable for the plan year unless you have a qualifying life event (marriage, divorce, birth of a child, loss or gain of dependent care, change in employment status). Open enrollment is the primary time to set your contribution.

Under Prop. Treas. Reg. §1.125-5, your full Health FSA annual election is available on Day 1 of the plan year — even before paycheck deductions begin. If you spend the full $3,400 in January and leave in February, your employer generally cannot claw back unpaid contributions. DCFSA is different: only amounts already contributed are available. Source: IRC §106.

Commonly overlooked (IRS Pub. 502): sunscreen (SPF 15+), OTC reading glasses, pregnancy/ovulation tests, breast pumps, CPAP supplies, blood glucose and blood pressure monitors, menstrual care products. Not eligible: gym memberships, teeth whitening, cosmetic surgery, general vitamins unless prescribed. Year-end tip: stock non-perishables before plan year end.

Yes — each spouse can elect a Health FSA at their employer up to $3,400 each ($6,800 household) in 2026. DCFSA exception: $7,500 is a household limit, not per spouse. Split-plan strategy: one spouse on HDHP + HSA + LP-FSA; the other on PPO + Health FSA. Source: IRC §129; IRS Pub. 969.

Choose an HSA if you have an HDHP and want funds to roll over forever with investment growth. Choose a Health FSA if you are not on an HDHP or have predictable medical costs this year. Add a DCFSA for childcare regardless of health plan. Best combo when eligible: HDHP + HSA + LP-FSA.

Yes. The DCFSA and the Child and Dependent Care Tax Credit (CDCTC) cover the same expenses — you cannot double-count the same dollar. Typical strategy: use DCFSA for the first $7,500 of eligible care, then claim the CDCTC for remaining eligible expenses above that (subject to the credit's own limits).

Generally no. FSAs are offered through employer Section 125 cafeteria plans. Sole proprietors and partners typically cannot contribute to an FSA through their own business the way W-2 employees can. Self-employed people may still explore HSA eligibility with an HDHP. This calculator zeroes FICA savings when you mark self-employed.

An LP-FSA is a Health FSA restricted to dental and vision expenses so it can coexist with an HSA. The 2026 limit matches the Health FSA ($3,400). Use it when you want HSA eligibility plus pre-tax dental/vision coverage.

Yes. Employers may contribute to FSAs under plan rules. Employer amounts typically count toward the annual limit for Health FSA elections. Confirm how your plan treats employer seed money versus employee elections.

Health FSA: you generally keep Day 1 access already used; unspent balance is often forfeited unless COBRA continuation for the FSA makes sense (often expensive). Submit claims before your last day. DCFSA: you can typically only use amounts already contributed. Check your SPD and HR for plan-specific rules.

It multiplies your contribution (capped at the 2026 limit for your FSA type) by your entered federal bracket for income-tax savings. Unless marked self-employed, it also applies a 7.65% FICA estimate for cafeteria-plan payroll contributions. It does not model state taxes, wage-base caps for every earner, or employer FICA — treat results as educational estimates.

No. Dependent Care FSA is always use-it-or-lose-it. Carryover and grace-period relief options apply to Health FSAs (and similarly structured LP-FSAs) when the employer elects one option — not to DCFSA.

Because of the uniform coverage rule, many people schedule planned dental work, LASIK, or other large eligible expenses early in the plan year when the full election is available. Near year-end, use the spend-down tracker and stock eligible non-perishables if you still have balance at risk.

Pre-tax FSA contributions lower FICA wages for the year, which can slightly reduce Social Security-covered earnings. For most people the current-year tax savings outweigh a small long-term benefit impact, but very high earners near the wage base should consider their full picture.

Health FSA funds generally can reimburse qualified medical expenses for you, your spouse, and tax dependents. LP-FSA is limited to dental/vision for those same individuals. DCFSA covers qualifying care for eligible dependents so you (and your spouse, if applicable) can work.

Health FSA / LP-FSA and carryover: IRS Revenue Procedure 2025-32. Dependent Care FSA higher limit: One Big Beautiful Bill Act (employers must amend plans). Eligible expenses: IRS Publications 969 and 502. Always confirm your employer's Summary Plan Description for carryover vs grace period.
Official IRS sources
IRS Publication 969
FSAs, HSAs, HRAs and other health accounts
Rev. Proc. 2025-32
Official 2026 FSA contribution limits (Oct 9, 2025)
IRS Topic 602
Child and dependent care credit (CDCTC)
IRS Publication 502
Medical and dental expenses (eligible items)

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Last updated: 2026-07-27 · Estimates only; verify with IRS Pub 969 · Not tax advice.