HSA Maximum Contribution for 2026

Each year, the IRS sets maximum contribution limits for health savings accounts (HSAs). For 2026, this limit increased slightly from 2025, due to changes in cost of living as determined by the IRS. There are certain circumstances under which you can breach these limits without penalty, but these are the specifics to know first.

A financial advisor can answer your questions about using an HSA to pay for medical expenses or save for retirement.

What Are the HSA Contribution Limits for 2026?

The HSA maximum contribution for 2026 is $4,400 for individual coverage (up from $4,300 in 2025) and $8,750 for family coverage (up from $8,550 in 2025).

However, these rules apply to people who keep their HSA coverage status for the entire year. The limits apply a bit differently for those who change coverage mid-year, which could occur because of a marriage, divorce or job change.

HSA Contribution Limits for 2026 When You Change Coverage

Any time you change your HSA status from single coverage to family coverage or vice versa, your maximum contribution for the year changes to the greater of the following options:

Option 1: Maximum annual contribution limit based on coverage status for each month of the tax year combined, and then divided by 12.
Option 2: Maximum annual contribution based on coverage status on December 1 of the tax year that the change was made.

This is a bit complex, so let’s go over some examples. Say you’re starting out with family HSA coverage in January 2026, and you switch to single coverage in July. Under the first option, your maximum contribution limit for 2026 becomes $6,475. This includes the average of maximum contribution limits for six months of single coverage and six months of family coverage. So, the formula is (6 x $4,400) + (6 x $8,550) / 12 = $6,475.

Option 1 works better in this case because it is more than option 2. In this case, your coverage status on Dec. 1 (single coverage) would be only $4,400.

Now, what if you choose a health insurance plan and open an HSA account last minute? You can then take advantage of the “last month rule.” This means that under this rule, if you were eligible for an HSA on December 1 of the tax year, you are considered eligible for the whole year. You are able to contribute the full amount based on your coverage status.

To keep this perk, however, you must remain covered until December 31 of the following year. If you fail to do so, you will owe income tax based on the contributions you made during the time you stayed eligible (except for the ones you made based on the last month rule). A 10% penalty tax is also included.

What If You Want to Contribute More to Your HSA?

A couple reviewing how much they can contribute to their HSA.

When you turn 55 years old, the IRS allows you to make additional “catch-up” contributions of $1,000 to your HSA medical account. Federal law sets this static rate, so the IRS does not adjust it every year for inflation.

However, it gets a little tricky for family coverage HSAs. HSAs, including those with family coverage, exist under one accountholder’s name, so, technically, there is no joint HSA. If you are married, you and your spouse cannot make $2,000 worth of catch-up contributions to the same HSA, even if you are both 55 or older. In this case, each may want to open a separate single-coverage account.

In addition, you can continue making contributions to your HSA after turning 65, as long as you are not also enrolled in Medicare because the IRS considers this a change in coverage. Regardless of age, however, it is important to contribute as much as you can.

Why You May Want to Contribute the Maximum to Your HSA

You can make tax-deductible contributions, up to the maximum in 2025. This means that come tax time, you can reduce your federal taxable income by the amount you contributed.

So, say you are making $50,000 in 2025. You have a single coverage HSA and contributed $4,400. As a result, Uncle Sam taxes you as if your income was $45,600 that year.

This is heavily simplified, though, as there are many other items that can affect your tax situation.

How Can You Meet HSA Contribution Limits for 2026?

In order to contribute to an HSA, you must be enrolled in an eligible high-deductible health plan (HDHP).

For 2026, an HDHP must carry a deductible of at least $1,700 for single coverage and $3,400 for family coverage. The out-of-pocket maximum for an HDHP can’t exceed $8,500 for single coverage. For family coverage HSAs, the out-of-pocket maximum cannot exceed $17,000.

That’s not all. Your HDHP must also pass other tests. For example, you will not qualify to open an HSA if your HDHP covers any non-preventive care benefit before you meet your deductible.

Be sure to ask your insurance carrier or employer’s benefits department if your HDHP can link to an HSA based on IRS requirements. If not, you may want to switch to a plan that can be paired with an HSA.

The bright side is that you can open an HSA through a bank or financial institution even if your employer does not offer one, as long as your HDHP makes the cut.

How to Use HSA Funds Strategically

If you can afford to cover health costs out of pocket, you may consider using your HSA to build wealth by leaving the funds invested. . This allows the account to grow over time, and since HSA earnings are tax-free when used for qualified expenses, the longer the funds stay in the account, the more tax-free growth potential you have.

Some people choose to save receipts for medical expenses they paid themselves, then withdraw from their HSA at a later time for reimbursement. There’s no deadline to take the reimbursement, as long as the expense occurs after the HSA is opened and you have proof of payment. This method gives the money more time to grow while still preserving your ability to access it later without taxes or penalties.

Once you turn 65, you can take HSA withdrawals for any reason without a penalty. If the funds are used for non-medical expenses, you will pay regular income tax but no penalty. If the funds are still used for medical costs, you avoid both taxes and penalties.

This flexibility can make the HSA a useful account to help manage healthcare expenses during retirement.

HSA Contribution Deadlines and Tax-Year Timing for 2026

HSA contributions are tied to the tax year in which they are designated, not just when the account is funded. For the 2026 tax year, contributions can generally be made up until the federal tax filing deadline in 2027. This applies only to contributions made directly to an HSA, not those made through payroll.

Contributions made through payroll deductions must be completed by December 31, 2026, to count toward the 2026 tax year. Payroll contributions are automatically applied to the year in which the wages are earned, so amounts withheld after year-end cannot be retroactively applied to the prior tax year.

If you make contributions outside of payroll, such as through a bank or HSA provider, you may be able to designate those deposits for the prior tax year as long as they are made before the tax filing deadline. These contributions must be clearly labeled for the intended tax year to avoid misreporting or excess contribution issues.

Mistiming contributions can result in exceeding annual limits or missing out on allowable deductions. Excess HSA contributions may be subject to an excise tax if not corrected, and undercontributing due to timing errors can reduce the tax benefit available for the year.

Bottom Line

A medical professional making a calculation.

Contributing to an HSA can be beneficial, but it is also complicated. Ultimately, you have to follow IRS rules. If you stay covered by an HDHP for the entire year, the HSA maximum contribution for 2026 is pretty clear-cut. Just be sure you understand the rules that apply if you change or lose coverage mid-year. The money in your HSA is yours to keep for your investment portfolio. You can use it tax-free on any qualified medical expense. Limits change each year, so be sure to keep an eye on annual announcements from the IRS.

Tips for Retirement Planning

A financial advisor can help you determine how to use your HSA. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you have eligible HDHP but your employer doesn’t offer an HSA, you can open one through many financial institutions. To start, consider our list of the best banks in the U.S.
An HSA serves as one of many beneficial tax-advantaged retirement vehicles. Another good option is an individual retirement account (IRA). Use our retirement calculator to see whether your retirement savings have you on pace for a secure retirement.