IRS raises 2026 HSA contribution limits

You know Health Savings Accounts (HSAs) are often an essential part of many benefits plans. At a high level, HSAs give employees a practical way to save for future medical expenses while enjoying great tax benefits.

While HSAs largely stay the same year-after-year, the Internal Revenue Service (IRS) does regularly publish updates to the maximum allowed limits. Lately, the HSA limits have enjoyed slight increases to keep pace with inflation. And this new batch of updated contribution limits is no exception. Keep reading for details on the recent IRS announcement about 2026 contribution limits.

What are the updated contribution limits for 2026?

With the recent release of Revenue Procedure 2025-19, the IRS provided the 2026 inflation-adjusted HSA contribution limits. Plus, they gave an update on high-deductible health plans (HDHPs) and excepted benefit Health Reimbursement Arrangements (HRAs). I’ll walk you through these updated figures so you can incorporate these adjustments into your benefits strategy for next year.

Here’s what 2026 looks like for HSAs, HDHPs, and excepted benefit HRAs.

What are the 2026 HSA contribution limits?

• Self-only coverage: The maximum contribution limit for individuals with self-only HDHP coverage is now $4,400.

• Family coverage: For those with family HDHP coverage, the maximum contribution limit increases to $8,750.

What qualifies as an HDHP in 2026?

To qualify as a high-deductible health plan, an HDHP in 2026 must meet these criteria:

• Minimum deductible of $1,700 for self-only coverage and $3,400 for family coverage.

• Maximum out-of-pocket expenses (excluding premiums) are capped at $8,500 for self-only coverage and $17,000 for family coverage.

What is the inflation adjustment for HRAs in 2026?

The maximum amount that may be newly made available for excepted benefit HRAs in 2026 has increased to $2,200, up from previous limits.

How do the contribution limits help with benefits planning?

These annual adjustments can help you plan for your benefits open enrollment period. And this information is helpful to pass on to employees so they can also plan for next year.

Here are four ways you can integrate the 2026 HSA updates into your benefits strategy:

1. Communicate changes clearly with easy-to-understand materials informing employees of the updated limits. Use multiple channels such as email announcements, webinars, and printed guides to ensure they know what to expect.

2. Offer financial education sessions educating employees on HSAs and showing how contributing up to the limit maximizes savings and reduces taxable income. Include visuals or examples to demonstrate the financial benefits over time.

3. Update payroll and benefits administration systems and work with your payroll provider to align your systems with the new contribution limits. This will help you ensure both individual and family contributions are accurately tracked and taxed appropriately.

4. Stay ahead of compliance by making sure your company’s HDHPs meet the required minimum deductible and out-of-pocket maximums for 2026. Subscribe to Remark Blog to keep informed of regulatory changes in the benefits industry.

Stay informed about benefits compliance topics

It’s my pleasure to get you up to speed on the latest HSA contribution numbers for 2026. By rolling these changes into your benefits strategy early, you’ll position your organization as a leader in thoughtful, comprehensive benefits planning.