For those with high-deductible health plans, health savings accounts (HSAs) can be a great way to pay for eligible medical expenses while enjoying significant tax advantages. In fact, unlike many other types of savings accounts, the contributions and earnings from an HSA are completely tax-free — and funds automatically roll over from year to year, so you don't have to worry about “using or losing” your benefits.
At the same time, there are some nuances that are unique to HSAs that you'll want to be aware of whether you already have an HSA or will be opening one in the future. Even if you're relatively familiar with how HSAs work, there are some changes on the horizon for 2026 to watch out for, particularly as it relates to annual contribution limits.
Health savings accounts, despite their numerous tax advantages, are subject to some limitations. Specifically, there's a limit to how much you (and your employer, if applicable) are allowed to contribute to your HSA each year. These limits can vary depending on whether your HSA covers just you or an entire family, as well as whether you're making “catch-up” contributions as an account holder aged 55 or older.
For 2025, the contribution limits on HSAs are as follows:
Employers can also contribute to employees' HSAs, but they are also subject to these limits. For example, if an employer contributed $3,000 to a family HSA, the employee would be able to contribute no more than another $5,550 for the remainder of the year.
Even if you already have an HSA and are familiar with annual contribution limits, it's important to stay on top of changes as they arise. That's because each year, contribution limits are reviewed and may be adjusted for any number of factors, including inflation and cost of living.
For 2026, the IRS has announced that it will be adjusting its contribution limits to the following:
As you can see, both individual and family HSA contribution limits have increased slightly to account for inflation. The catch-up contribution limit, however, remains the same.
In addition to increases on contribution limits, the IRS has announced adjustments to minimum deductibles and maximum out-of-pocket expenses for high-deductible health plans.
Specifically, beginning in 2026, the minimum deductible will be $1,700 for individuals and $3,400 for families, with an out-of-pocket maximum of $8,500 annually for individuals and $17,000 annually for families.
If you have an HSA or plan to open one in the coming year, it's important to be aware of annual contribution limits. Because money invested into these accounts is tax-free, the IRS is strict about these contribution limits, as well as the eligibility requirements that you must meet to open an HSA in the first place.
If you've been making the maximum contribution to your account, you may want to consider slightly increasing your contributions to meet the new limits beginning in 2026. If your employer has been making contributions, you may want to speak with a member of your human resources (HR) team to find out more about any plans to increase contributions to HSAs company-wide beginning in 2026. With the right information, you can make informed choices regarding your own financial planning.
Ultimately, making the right contributions to your HSA depends on many factors — not just the annual limit. For some with less complex healthcare needs and fewer anticipated medical expenses, contributing less than the annual limit can keep more money in your pocket. On the other hand, having more money in your HSA can give you some much-needed peace of mind and financial buffer in the event of an unforeseen medical expense.
Contribution limits for HSAs are updated regularly as inflation and living costs fluctuate, so be sure to stay on top of the latest information through the IRS directly. In the meantime, if you need guidance when it comes to opening or managing your health savings account, consider setting up an appointment with a financial advisor. From there, you can get the help you need deciding how much to contribute to your account and how to make the most of your HSA.
If you have any questions or would like additional information, please contact our tax department.