2026 HSA Contribution, HDHP Cost-Sharing Limits

The IRS has announced slightly higher health savings account contribution limits for 2026, with the amount increasing 2.3% for individual HSA plans.

The IRS updates this amount annually, along with minimum deductibles and out-of-pocket maximums for high-deductible health plans. HSAs, which help employees save for medical expenses, are only available to those enrolled in qualified HDHPs.

Understanding these amounts now can help you get an early start on human resources planning for next year.

Here are the changes coming in 2026:

HSA annual contribution limit

• Self-only plan: $4,400, up from $4,300 in 2025
• Family plan: $8,750, up from $8,550 in 2025
• Catch-up contribution (for those aged 55 and older): $1,000 (unchanged)

HDHP minimum annual deductible

• Individual plan: $1,700, up from $1,650 in 2025
• Family plan: $3,400, up from $3,300 in 2025

HDHP annual out-of-pocket maximum

• Individual plan: $8,500, up from $8,300 in 2025
• Family plan: $17,000, up from $16,600 in 2025

Maximum employer excepted-benefit HRA contribution

• $2,200, up from $2,150

What to do

If you sponsor an HDHP for your staff, review the plan’s minimum deductible and maximum out-of-pocket limit when preparing for the 2026 plan year.

If you allow employees to make pre-tax contributions to an HSA, you should also update your plan communications to reflect the new amounts.

The many benefits of HSAs

An HSA is a special bank account for your employees’ eligible health care costs. They can put money into their HSA through pre-tax payroll deductions, deposits or transfers. As the amount grows over time, they can continue to save it or spend it on eligible medical and medical-related expenses.

Employers can also contribute to the accounts, but the annual contribution maximum applies to all contributions in total (from the employee and the employer).

The money in the HSA belongs to the employee and is theirs to keep, even if they switch jobs. If they go to a new employer that offers qualified HDHPs, they can continue to fund the account in their new job.

Funds roll over from year to year and can earn interest. Many plans also have investment options to help savers further grow the account.

There are several benefits for employees who have an HSA:

• The money an employee contributes to an HSA is not subject to income taxes, which reduces their overall taxable income.
• They are not taxed on withdrawals.
• If employees contribute to their HSA with after-tax money, they can deduct their contributions at tax time on Form 1040.
• Employees can tap the funds for any approved out-of-pocket medical expenses.
• They can also grow the account tax-free by investing the funds in the account, like a nest egg for medical expenses in retirement.

HSA-eligible expenses:

• Payments for services or medicine that count towards health plan deductibles, copayments or coinsurance.
• Dental or vision care (including orthodontics, eye exams and corrective lenses).
• Medical devices.
• Certain over-the-counter medicines, such as pain relievers, allergy medication, cold and flu medicine and menstrual products.
• Vitamins and health supplements, if recommended by a medical or health professional for the treatment or prevention of a specific disease or condition.