What are the 2026 FSA contribution limits?

The 2026 Healthcare FSA limit is $3,300. The Dependent Care FSA limit remains $5,000 per household ($2,500 if married filing separately). The Limited Purpose FSA (dental/vision only, paired with HSA) also has a $3,300 limit.

What is the FSA use-it-or-lose-it rule?

Unlike an HSA, unused FSA funds generally expire at year-end. Employers may offer either a $660 carryover (2026 limit) or a 2.5-month grace period — but not both. Contribute only what you plan to spend, plus the carryover amount.

How much do I save in taxes with an FSA?

FSA contributions reduce federal income tax, state income tax, and FICA (7.65%). At a 22% federal + 5% state rate, each $1 contributed saves ~34.65 cents in taxes, making the effective cost of $3,300 in contributions about $2,155.

Can I have both an FSA and HSA?

You cannot have a full Healthcare FSA and an HSA simultaneously. However, a Limited Purpose FSA (covers only dental and vision) can be paired with an HSA, allowing you to maximize both accounts.

What qualifies as an FSA-eligible expense?

IRS-approved expenses include doctor visits, prescription drugs, dental care, vision care (glasses, contacts, LASIK), mental health services, and hundreds of OTC items. Cosmetic procedures and gym memberships generally do not qualify.

FSA Calculator

Calculate FSA tax savings with 2026 limits: Healthcare FSA $3,300, Dependent Care FSA $5,000. Avoid the use-it-or-lose-it trap with our optimal contribution planner.

Monthly FSA Contribution ?

Anticipated Annual Medical Expenses

Federal Marginal Tax Rate (%)

Annual Tax Savings

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After-Tax Cost of Contribution —

Annual FSA Contribution —

Extended More scenarios, charts & detailed breakdown ▾

Annual Contribution ($) ?

Federal Marginal Tax Rate (%)

State Tax Rate (%)

Planned Medical Expenses ($)

Plan Allows Carryover?

Total Tax Savings (Federal + State + FICA)

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Effective Cost of $1 in FSA —

Forfeiture Risk —

Recommended Contribution —

Professional Full parameters & maximum detail ▾

FSA Type

Annual Contribution ($)

Federal Marginal Rate (%)

State Tax Rate (%)

Planned Eligible Expenses ($)

Carryover Allowed ($) ?

2026 FSA Limits

Applicable 2026 FSA Limit —

Tax Savings Breakdown

Federal Income Tax Savings —

State Tax Savings —

FICA Tax Savings —

Total Tax Savings —

Forfeiture Analysis

Potential Forfeiture —

Optimal Contribution (no forfeiture) —

How to Use This Calculator

Enter your monthly FSA contribution and anticipated medical expenses.
Enter your federal marginal tax rate (check your last tax return).
Switch to the Healthcare FSA tab to see the use-it-or-lose-it forfeiture risk and optimal contribution.
Use Dependent Care FSA for childcare and elder care savings.
Use Professional for a full breakdown of federal, state, and FICA savings.

Formula

Tax Savings = Annual Contribution × (Federal Rate + State Rate + FICA Rate)

Optimal Contribution = min(Planned Expenses + Carryover, FSA Limit)

FICA Rate = 7.65% (employee share of Social Security + Medicare)

Example

$2,400 annual Healthcare FSA contribution, 22% federal + 5% state + 7.65% FICA = 34.65% combined. Tax savings: $832. Effective cost: $1,568. If you have $660 carryover and $1,800 in planned expenses, optimal contribution = $2,400 (no forfeiture risk).

Frequently Asked Questions

The 2026 Healthcare FSA limit is $3,300. The Dependent Care FSA limit remains $5,000 per household ($2,500 if married filing separately). The Limited Purpose FSA (dental/vision only, paired with HSA) also has a $3,300 limit.
Unlike an HSA, unused FSA funds generally expire at year-end. Employers may offer either a $660 carryover (2026 limit) or a 2.5-month grace period — but not both. Contribute only what you plan to spend, plus the carryover amount.
FSA contributions reduce federal income tax, state income tax, and FICA (7.65%). At a 22% federal + 5% state rate, each $1 contributed saves ~34.65 cents in taxes, making the effective cost of $3,300 in contributions about $2,155.
You cannot have a full Healthcare FSA and an HSA simultaneously. However, a Limited Purpose FSA (covers only dental and vision) can be paired with an HSA, allowing you to maximize both accounts.
IRS-approved expenses include doctor visits, prescription drugs, dental care, vision care (glasses, contacts, LASIK), mental health services, and hundreds of OTC items. Cosmetic procedures and gym memberships generally do not qualify.

Related Calculators

Sources & References (5) ▾

IRS Revenue Procedure 2024-40 — 2025/2026 FSA Limits — Internal Revenue Service
IRS Publication 502 — Medical and Dental Expenses — Internal Revenue Service
SHRM — FSA Plan Design Guide — Society for Human Resource Management
HealthCare.gov — Flexible Spending Accounts — HealthCare.gov
Tax Foundation — FSA and HSA Tax Expenditure Analysis — Tax Foundation