HSA Tax Savings Calculator
How much does a Health Savings Account save you? This shows your first-year federal, FICA, and state tax savings — plus the account's signature tax-free growth over time. 2026 limits.
How HSA tax savings work
A Health Savings Account is the most tax-favored account in the US code, and this calculator quantifies why. When you contribute, three things happen. Your contribution lowers your taxable income, so you owe less federal income tax. If you contribute through payroll, the money also escapes the 7.65% FICA tax. And once inside, the balance grows tax-free and comes out tax-free for qualified medical expenses. The calculator adds up the first two effects for the current year and projects the third over time.
2026 contribution limits
To contribute, you must be covered by a qualifying high-deductible health plan (HDHP) and have no disqualifying coverage. For 2026 the IRS limits are $4,400 for self-only coverage and $8,750 for family coverage. If you're 55 or older, you can add a $1,000 catch-up contribution. This tool caps your entry at the limit that matches your coverage and age and tells you when you've hit it.
Why payroll contributions save more
The single biggest difference in HSA savings is how you contribute. Money routed through your employer's payroll under a cafeteria plan is excluded from wages for both income tax and FICA — Social Security (6.2% up to the wage base) and Medicare (1.45%). A direct contribution you deduct on your return still saves income tax, but you've already paid FICA on those wages. For a worker in the 22% federal bracket, the payroll route can mean an effective discount near 30% on every dollar, versus about 22% for a direct contribution.
The tax-free growth most people miss
Many people treat an HSA as a spending account, paying this year's medical bills straight out of it. But if you can cover medical costs from other cash and leave the HSA invested, it becomes a stealth retirement account: contributions go in pre-tax, grow tax-free for decades, and come out tax-free for the medical expenses nearly everyone faces later in life. The "tax-free value over time" figure shows what contributing the same amount each year could grow to at your chosen return — none of it taxed along the way.
Fitting the HSA into your plan
Because HSA dollars are so efficient, many advisers suggest funding it right after capturing any 401(k) employer match. Check that match first with our retirement calculator, then see how the contribution changes your take-home pay in the paycheck calculator. If you're also weighing taxable investments, the capital gains calculator shows the tax an HSA lets you avoid entirely.