The IRS has announced that the maximum amount that can be put into a Health Savings Account (HSA) will go up a little in 2026.
People who only cover themselves will be able to pay up to $4,400, which is $100 more than in 2025. The cap goes up from $8,550 to $8,750 for people with family coverage. These changes are based on inflation and are in line with what the government says every year to keep up with rising healthcare costs.
HSAS are one of a kind because they let you save on taxes and buy things with the money. That being said, not everyone qualifies, but those who do can save money before taxes, invest it, and then withdraw it tax-free for qualifying medical costs. Because of these benefits, the HSA is still one of the best ways to plan for health care.
People who have an account must have a high-deductible health plan (HDHP) in order to donate. The minimum deductible for this type of plan for single coverage goes up from $1,650 in 2025 to $1,700 in 2026. For family plans, the minimum deductible must be at least $3,400.
Health insurance plans with high deductibles and those can offer them
So that you can open an HSA or put money into one, you need to have an HDHP that fits the IRS’s description. These plans offer lower premiums in exchange for bigger deductibles. They are meant to give policyholders more control over how much they spend on health care.
For the year 2026:
• For self-only coverage, the lowest cost is $1,700.
• The lowest deductible for family coverage is $3,400; • The highest deductible for self-only coverage is $8,500.
• The most a family will have to pay is $17,000
For in-network costs, these limits apply. Out-of-network costs can be very different from one insurance company to the next.
If you’re not sure if your plan is eligible, you can ask your insurance company or look at the plan’s paperwork. As long as you are still eligible at the end of the next year, you can give the maximum amount even if you become eligible in the middle of the year. This is called the “last-month rule.”
What’s great about HSAS is that they offer triple tax benefits.
The best thing about HSAS is that they offer three levels of tax breaks:
1. Donations can be used to lower your taxes.
2. The increase in investments in the account is not taxed right away.
3. Withdrawals for certain medical costs are not taxed.
The money in an HSA, unlike a Flexible Spending Account (FSA), rolls over every year and stays with the account user forever. Your HSA will follow you around even if you change jobs or health insurance plans.
Some people can trade their HSA funds instead of using them for regular medical care. This can make the account a great way to plan for retirement. People often don’t think about how much their medical costs will be in retirement, and the HSA is a tax-efficient way to save for them.
For an HDHP, the most you’ll have to pay out of pocket is now $8,500 for coverage for one person and $17,000 for coverage for a family.
Tips and Deadlines for Contributions
The last day to put money into an HSA in 2026 is April 15, 2027. That means savers will have more time after the end of the year to reach their contribution cap. A lot of people use this extra time to make last-minute deposits, especially if they get a tax return or a bonus at the end of the year. A family can also “top-up” if they didn’t take out enough from their paycheck to make the maximum payment.
HSAS can also be changed. These can be paid for by direct payments, employer contributions, or money taken out of your paycheck. Now is a good time to look into HSA options if you haven’t already started one. There are a lot of banks that offer HSAS with low fees and a lot of funding options.
If you want to get the most out of the benefit, try to put money in early in the year. This gives your money more time to grow and make more money. Also, remember to keep your receipts, because taking money out for non-qualified spending is taxed and costs you 20% (unless you’re over 65, in which case the penalty goes away but the taxes still apply).
HSAS can also be changed. These can be paid for by direct payments, employer contributions, or money taken out of your paycheck. Now is a good time to look into HSA options if you haven’t already started one. There are a lot of banks that offer HSAS with low fees and a lot of funding options.
If you want to get the most out of the benefit, try to put money in early in the year. This gives your money more time to grow and make more money. Also, remember to keep your receipts, because taking money out for non-qualified spending is taxed and costs you 20% (unless you’re over 65, in which case the penalty goes away but the taxes still apply).
