This maximum HSA contribution overview has been updated with info for the 2025 and 2026 tax years. If you’ve been following this site, you know that I have long been a big fan of health savings accounts (HSAs) and have made the maximum annual HSA contribution when I was eligible to do so. There is good news on that front. The IRS has announced an inflation adjustment increase to the maximum HSA contribution amounts for 2026, and there will be sizable increases over the maximum HSA contributions for 2025 that were announced previously. Both the individual and family HSA contribution maximum amounts (detailed below) will increase from 2025 to 2026, which is great news for savers.
The IRS announces annual inflation increases for HSAs in May, separate from retirement accounts (e.g. 401Ks, IRAs), which it updates in November. And, with inflation over the past year, there will be an increase in the maximum HSA contribution. There will also be increases in minimum annual deductibles and out of pocket expenses for HDHPs. Why should you care about HSA maximum contributions? Let’s discuss…
The Value of HSA Accounts Has Increased in Recent Years
HSAs could always be used to pay for qualified medical expenses like doctors visits, flu shots, prescription drugs, surgery, prescription glasses and contacts, and more. With recent legislation, the value of having an HSA account has increased. It is also possible to use HSA, FSA, and HRA funds for OTC medications and menstrual care products. The ability to use these accounts for non-prescribed OTC items was previously removed in 2011 before returning more recently.
And, previously, the IRS provided guidance that HSA-eligible HDHPs should consider a number of popular medical services, medications, and devices, such as insulin, inhalers, and statins as “preventative care“. For plans that adopt that guidance, these items could be fully covered by the insurer before the deductible.
HSA Accounts Have High Value for Savers
HSAs can have great value for big savers who are lucky enough to have one. HSAs are like IRAs on steroids (tax-free steroids at that). They offer users pre-tax contributions, tax-free investment gains, and tax-free distributions to pay for eligible medical expenses.
With HSAs, you own the account. It goes with you and can be used regardless of future employment status or health plan. This is not the case with FSAs, which are tied to your employer. And, unfortunately, you cannot roll over FSA funds to an HSA.
All benefits aside, your ability to annually contribute to an HSA is determined by whether or not you are enrolled in a high deductible health plan (HDHP), as they are defined by the IRS.
For 2025, HDHPs are Defined as:
- A minimum annual deductible: of at least $1,650 for individual coverage or $3,300 for family coverage; and
- Annual out-of-pocket expense maximums: (e.g., deductibles, co-payments, and other amounts, but not premiums) up to $8,300 for individual coverage or $16,600 for family coverage.
For 2026, HDHPs are Defined as:
- A minimum annual deductible: of at least $1,700 for individual coverage or $3,400 for family coverage; and
- Annual out-of-pocket expense maximums: (e.g., deductibles, co-payments, and other amounts, but not premiums) up to $8,500 for individual coverage or $17,000 for family coverage.
Take this in to consideration when open enrollment comes around this fall.
Now, on to the exciting part – the HSA maximum contribution amounts for 2025 and 2026.
2025 Maximum HSA Contribution Limits
The maximum HSA contribution amounts for 2025 are:
- Individual Plan: $4,300 (+$150 over prior year)
- Family Plan: $8,550 (+$250 over prior year)
Note: The maximum HSA contribution includes both employer + employee contributions.
2026 Maximum HSA Contribution Limits
The maximum HSA contribution amounts for 2026 are:
- Individual Plan: $4,400 (+$100 over prior year)
- Family Plan: $8,750 (+$200 over prior year)
Note: The maximum HSA contribution includes both employer + employee contributions.
2025 & 2026 HSA Catch-Up Contribution Amount
Similar to IRAs and 401Ks, there are catch up contributions for those age 55 and over. The HSA catch-up contribution is $1,000 per eligible individual (+$1,000 for an individual plan and +$2,000 for a family plan) for 2025 and 2026.
Can you Contribute to an HSA Outside of an Employer Payroll Deduction?
Yes, you can contribute to an HSA outside of an employer. And the same tax deductible benefits apply (you just won’t be able to fully realize them until you do your taxes for the year.
When is the HSA Contribution Deadline?
The HSA contribution deadline is the same date as the tax deadline. This means you have additional time after the end of the calendar year to retroactively make HSA contributions for that year, up until the tax deadline.
The Case for Maxing Out your HSA Contribution
Here’s why you should consider contributing as much as you can to an HSA: if you are young and healthy, health care costs will eventually catch up with you. HSAs allow you to build a significant cushion to protect yourself from future costs, while giving you exceptional tax benefits on contributions and withdrawals. Why pay for health care costs with after-tax dollars if you could pay with pre-tax dollars?
When you turn 65, you can use HSA funds on not just medical expenses, but anything, without penalty (non-medical expenses are taxed like Traditional IRA distributions) – so there’s little downside to contributing too much. And, remember that the entire time you can grow your contributions through investments, just like any other retirement account.
In most cases, you’ll have to decide your HSA contributions for the following year during your open enrollment. Your employer will usually let you contribute a specified amount evenly across all pay periods. Some employers will allow you to make larger contributions towards the end of the year, and some may even allow you to front-load your HSA contributions at the beginning of the year. Your employer may also make their own tax-free contributions to your HSA, if you are enrolled in their HDHP offering.
How to Open a New HSA to Help Maximize your HSA Contributions
Opening a new HSA or transferring funds from an existing HSA to another HSA is easy to do. Check out my list of the best HSA accounts for ideas on what to look for, along with some recommendations. If your current employer’s HSA is not the best, you can transfer funds from it to your own separate HSA, and can even do so while you are still employed and using it. There are no restrictions against having multiple HSA accounts, so you can create a new one at any time.
HSA Discussion:
- Will you be maxing out your HSA this year or next year?
- Do you look at your HSA as a potential retirement account or strictly view it as a health care expense account?
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