How to use the HSA calculator
- 1 Choose self-only or family high-deductible coverage.
- 2 Enter your age; from 55 you can add $1,000.
- 3 Enter your contribution, tax bracket and state rate.
- 4 Choose payroll or on your own, then read your savings.
Worked example
A 40-year-old with family coverage contributing $8,750 through payroll, in the 22% bracket with 5% state tax. Income tax saved is $2,362.50 and FICA saved is $669.38, a total of about $3,032. Investing the same amount each year at 6% for 20 years could build about $341,000.
Who can use an HSA
You can contribute to an HSA only while you are covered by an HSA-eligible high-deductible health plan and have no other disqualifying coverage. For 2026, a plan must have a deductible of at least $1,700 for self-only or $3,400 for family cover.
- New for 2026: marketplace bronze and catastrophic plans count as HSA-eligible, and direct primary care arrangements no longer disqualify you.
- Medicare ends new contributions, but you can still spend the money tax-free on medical costs.
- After 65, non-medical withdrawals are taxed like income but have no 20% penalty, much like a traditional IRA.
Many people pay current medical bills from cash and let the HSA grow invested for retirement. Compare it with a 401(k) and a Roth IRA.
Features
2026 limits
$4,400 self-only and $8,750 family, plus $1,000 catch-up at 55.
Triple tax benefit
Deductible contributions, tax-free growth and tax-free withdrawals for medical costs.
FICA savings
Payroll contributions also skip the 7.65% Social Security and Medicare tax.
When to use it
Open enrollment
Decide how much to put in for the year. Compare with your plan in the 401(k) Calculator.
Retirement health costs
Build a pot for medical costs in retirement. Compare with the Roth IRA Calculator.
Investing an HSA
See long-term growth if you invest and pay costs out of pocket. See payroll savings with the Paycheck Calculator.
Comparing plans
Weigh a high-deductible plan with an HSA against a PPO. Plan healthcare costs with the Retirement Calculator.
Related Savings and Investing tasks
Frequently asked questions
What are the 2026 HSA limits?
$4,400 for self-only coverage and $8,750 for family coverage. People aged 55 or older can add $1,000.
Who can open an HSA?
Anyone covered by a qualifying high-deductible health plan with no other disqualifying coverage, not enrolled in Medicare and not claimed as a dependent.
Do HSA funds expire?
No. Unlike an FSA, the balance rolls over every year and stays yours if you change jobs.
What can HSA money pay for?
Qualified medical expenses, including deductibles, prescriptions, dental and vision care.
What happens after 65?
You can withdraw for any purpose without penalty. Non-medical withdrawals are taxed like a traditional IRA.
Does my employer's contribution count?
Yes. Employer and employee contributions share the same yearly limit.
Do all states allow the deduction?
Most do. California and New Jersey tax HSA contributions at the state level.
Can I invest my HSA?
Yes. Many providers let you invest the balance in mutual funds once you keep a minimum in cash.
What is the penalty for non-medical withdrawals?
Before 65, non-medical withdrawals are taxed and face a 20% penalty.
Can I reimburse myself later?
Yes. You can pay medical costs now and reimburse yourself from the HSA years later, as long as you keep receipts and the HSA was open when the cost occurred.
What counts as a high-deductible plan in 2026?
A plan with a deductible of at least $1,700 for self-only or $3,400 for family coverage, with out-of-pocket limits set by the IRS.
Can I contribute after enrolling in Medicare?
No. Contributions must stop once Medicare coverage begins, but you can still spend the balance.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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