Know Your HSA Contribution Limits for 2026

If you’re lucky enough to have access to a Health Savings Account (HSA), 2026 gives you a little more room to save, and that’s a big deal. HSAs are one of the most powerful (and underrated) savings tools out there because they offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.

For 2026, the IRS has increased HSA contribution limits again, giving savers more room to build long-term, tax-advantaged savings. Here’s what you need to know about one of our favorite accounts!

2026 HSA Contribution Limits

For 2026, you can contribute up to:

• $4,400 if you have self-only HDHP coverage (HDHP = High Deductible Health Plan)
• $8,750 if you have family HDHP coverage
• An additional $1,000 catch-up if you’re age 55+

These limits apply to total contributions, meaning the combined amount from you and your employer cannot exceed these caps.

2026 vs. 2025 HSA Contribution Limits

To put the increase in context, here is how the limits compare to last year:

Year	Self-Only Coverage	Family Coverage	Catch-Up (55+)
2025	$4,300	$8,550	$1,000
2026	$4,400	$8,750	$1,000

What changed:

• Self-only coverage increased by $100
• Family coverage increased by $200
• Catch-up contributions stayed the same

While the increases might seem modest, they’ll still add meaningful tax-advantaged space over time, especially if you invest your HSA and let it compound over the years, which is our favorite way to use it. Just keep your receipts for future reimbursement.

Contributing to an HSA Outside of Payroll

Not all HSA contributions have to go through your paycheck. If your employer doesn’t offer payroll HSA contributions, or if you want to add more later, you can contribute directly to your HSA on your own.

Here’s how it works:

• You make a contribution directly to your HSA provider (via bank transfer, check, or online deposit)
• These contributions do not reduce your paycheck taxes upfront, unlike payroll contributions
• Instead, you claim the tax benefit when you file your return.

How This Shows Up at Tax Time

When you file your taxes:

• You’ll report all HSA contributions on Form 8889
• Contributions made outside payroll are deducted as an above-the-line adjustment to income
• This still lowers your taxable income, even if your employer wasn’t involved

An important note: Payroll contributions avoid both income tax and FICA taxes (Social Security and Medicare). Contributions made outside payroll avoid income tax, but not FICA, which is why payroll contributions are usually preferred when available. But, contributing outside of payroll is still a smart move if it helps you reach the annual limit.

In my case, I have to contribute outside of payroll because I’m on my husband’s HDHP plan, and therefore not connected to payroll to deduct contributions from. I contribute directly to my Fidelity HSA plan. Even if I don’t avoid FICA tax, it’s still well worth the overall tax advantage.

A Few HSA Contribution Rules to Keep in Mind

• You must be enrolled in an HSA-eligible high-deductible health plan (HDHP) to contribute
• Contribution limits are prorated if you were only HSA-eligible for part of the year
• Contributions for a given tax year can be made up until Tax Day of the following year (typically April 15)
• Employer contributions count toward your annual limit

Why HSAs Matter Beyond Medical Bills

Many people treat HSAs like a checking account for doctor visits, but if used strategically, they can function as a stealth retirement account.

• After age 65, you can withdraw HSA funds for non-medical expenses (you’ll just pay ordinary income tax, similar to a traditional IRA)
• But withdrawals for qualified medical expenses remain tax-free at any age
• There are no required minimum distributions (RMDs,) meaning you can continue to let it grow

The Money Move

For 2026, higher HSA contribution limits mean more flexibility and more tax-advantage savings potential. Whether you contribute through payroll or on your own, staying aware of the limits and how to report them correctly can help you get the most out of one of the best financial tools available!

FAQs

Do employer HSA contributions count toward my limit?

Yes. Employer contributions are included in your annual HSA contribution cap.

Can I contribute to an HSA if I’m self-employed?

Yes, as long as you have an HSA-eligible health plan. Self-employed individuals typically contribute outside payroll and claim the deduction at tax time.

What happens if I overcontribute?

Excess contributions are subject to a 6% penalty each year until corrected. You can avoid penalties by withdrawing the excess before your tax filing deadline. For example, with Fidelity, they have a Return of Excess Contribution form to fill out, as it’s not as simple as removing it yourself.

Can I invest my HSA funds?

Absolutely, and this is the best way for your funds to grow over time. Many HSA providers allow you to invest once your balance reaches a certain threshold.

Read more:

The Beginner’s Guide to HSAs: What They Are and How to Use One
Don’t Leave Your HSA Behind at An Old Job