FSA Calculator 2026
Estimate your tax savings from a Flexible Spending Account — Health FSA ($3,400), Dependent Care FSA ($7,500), or Limited-Purpose FSA ($3,400). Includes a spend-down tracker and real cost of eligible expenses after tax savings.
Estimated annual tax savings
$1,008
Your $3,400 contribution effectively costs only $2,392
$748
Income tax saved
$260
FICA saved
$2,392
Net cost
$92.00
Per check
Pay for most medical, dental, and vision expenses. Use-it-or-lose-it (with optional carryover/grace period).
100% of 2026 limit
Plan year-end option
Ask your employer — they choose one (not both).
2026 FSA limits
- Health FSA$3,400/yrUp 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/yrDental & vision only; pairs with HSA
- Max carryover$680/yrHealth 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: keep up to $680
- Grace period: 2.5 extra months to spend
Dependent Care FSA: always use-it-or-lose-it. No relief options.
Common eligible expenses
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:
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.
| Feature | Health FSA | LP-FSA | DCFSA | HSA |
|---|---|---|---|---|
| Requires HDHP? | No | No (+ HSA) | No | Yes |
| 2026 annual limit | $3,400 | $3,400 | $7,500 | $4,400 / $8,750 |
| Use-it-or-lose-it? | Yes | Yes | Always yes | No — rolls over forever |
| Carryover option? | Up to $680 | Up to $680 | None | Unlimited |
| Investment growth? | No | No | No | Yes |
| FICA savings? | Yes | Yes | Yes | Yes |
| Covers medical? | Yes | Dental/vision only | No | Yes |
| Covers childcare? | No | No | Yes | No |
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.
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, making $7,500 in childcare cost you only $4,875. 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. The recommended strategy: use the DCFSA for the first $7,500 in eligible care, then claim the CDCTC for any remaining eligible expenses above that (up to the credit's own limit).
2026 FSA contribution limits
IRS-published limits per Rev. Proc. 2025-32, effective January 1, 2026.
| Account type | 2025 | 2026 | Notes |
|---|---|---|---|
| Health FSA | $3,300 | $3,400 | Max carryover: $680 |
| LP-FSA | $3,300 | $3,400 | Dental & vision only; use with HSA |
| DCFSA (single / MFJ) | $5,000 | $7,500 | OBBA (Jul 4, 2025); employer must opt in |
| DCFSA (married filing separately) | $2,500 | $3,750 | Per spouse |
| Health FSA carryover | $660 | $680 | If employer allows; not for DCFSA |
The uniform coverage rule — your employer's interest-free loan you can use strategically
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. This asymmetric risk runs in the employee's favor: if you spend your full $3,400 election in January and leave your job in February, your employer legally cannot claw back the unpaid portion. Attempting to do so would jeopardize the plan's tax-qualified status under IRC §106.
Practical strategy: Schedule expensive planned procedures — LASIK, orthodontia, dental implants, or a high-deductible reset — in January when you have access to the full election. If you change jobs mid-year, submit all claims before your last day. Sources: Prop. Treas. Reg. §1.125-5; IRC §106; legalclarity.org; warp.co.
30+ FSA-eligible items most people pay for with after-tax dollars by mistake
IRS Publication 502 is the definitive list, but most people never read it. According to FSA Store data, the top categories where people leave money on the table — paying out of pocket with after-tax dollars when their FSA would have covered it:
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. FSA Store and Amazon's FSA-eligible filter make it easy to zero out your balance rather than forfeit it. Sources: IRS Pub. 502; FSAstore.com; IRS Notice 2020-29.
Dual-FSA household strategy — maximizing when both spouses work
Two-income households can significantly multiply their FSA tax savings by coordinating elections across both employers. Each spouse elects their own FSA independently — subject to plan-type rules:
| FSA type | Per spouse limit | Household max | Rule |
|---|---|---|---|
| Health FSA | $3,400 | $6,800 | Each spouse's limit is independent — no household cap |
| LP-FSA (with HSA) | $3,400 | $6,800 | Each spouse with HSA can pair an LP-FSA |
| DCFSA | $7,500 | $7,500 total | Household 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 pre-tax savings: $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 (best of both worlds)
Spouse A enrolls in HDHP → opens HSA + LP-FSA. Spouse B enrolls in PPO → opens Health FSA. Each maximizes their plan's tax benefits independently. Both can cover family medical expenses from either account. Source: IRC §129; IRS Pub. 969.