HSA Calculator
Estimate tax savings from Health Savings Account contributions. Individual vs family, 2026 limits.
How HSA tax savings work
HSA contributions are tax-deductible (or pre-tax via payroll) and avoid FICA when made through your employer. Enter your contribution and tax bracket to see estimated savings. You must have a qualified HDHP to contribute.
HSA contribution limits
| Coverage | 2025 | 2026 | 55+ catch-up |
|---|---|---|---|
| Individual | $4,300 | $4,400 | +$1,000 |
| Family | $8,550 | $8,750 | +$1,000 |
HDHP required: You need a high-deductible health plan (2026: deductibles ≥ $1,700 individual / $3,400 family). Contributions are triple tax-advantaged: deductible, grow tax-free, withdrawals for qualified medical expenses are tax-free.
Common Questions About HSAs
What is the HSA triple tax advantage?
An HSA offers three tax benefits: (1) Contributions are tax-deductible—or pre-tax via payroll, reducing your taxable income. (2) Growth is tax-free—investments grow without annual tax. (3) Qualified medical withdrawals are tax-free. No other account (401k, IRA, etc.) offers all three. Plus, when made via payroll, HSA contributions avoid FICA (7.65%)—a significant extra savings.
Do HSA contributions reduce FICA tax?
Yes, when contributions are made through your employer's Section 125 cafeteria plan (payroll deduction). Both you and your employer save 7.65% FICA on HSA contributions. If you contribute outside payroll (e.g., directly to the HSA), you get the income tax deduction but not the FICA exclusion. Self-employed individuals don't get the FICA exclusion on their own HSA contributions.
What qualifies as a high-deductible health plan (HDHP)?
For 2026: minimum deductibles of $1,700 (individual) or $3,400 (family). Maximum out-of-pocket: $8,500 (individual) or $17,000 (family). You can't have other health coverage (except dental, vision, disability, specific disease, or accident). Medicare enrollment makes you ineligible for new HSA contributions.
Can I use my HSA for retirement?
Yes. After age 65, you can withdraw for any reason—subject to income tax like a Traditional IRA, but no 20% penalty. Before 65, non-qualified withdrawals incur income tax plus 20% penalty. Many savers use the HSA as a retirement healthcare fund: contribute the max, pay medical bills out of pocket, save receipts, and reimburse years later tax-free. Or invest and let it grow for future healthcare costs.
How much can I save in taxes with an HSA?
Use the calculator above. Example: $4,400 individual contribution in the 22% bracket, via payroll = $4,400 × 22% (income tax) + $4,400 × 7.65% (FICA) ≈ $1,300 in tax savings. Family max ($8,750) in the 24% bracket saves roughly $2,780. Add investment growth and tax-free qualified withdrawals for long-term benefits.