A comparison of the 2026 and 2027 limits
| 2027 | 2026 | Change | |
|---|---|---|---|
| HSA contribution limit (employer + employee) | Individual: $4,500 Family: $9,000 | Individual: $4,400 Family: $8,750 | Individual: +$100 Family: +$250 |
| HDHP minimum deductibles | Individual: $1,750 Family: $3,500 but no less than $3,500 per person | Individual: $1,700 Family: $3,400 but no less than $3,400 per person | Individual: +$50 Family: +$100 |
| HDHP maximum out-of-pocket amounts (deductibles, copayments and other amounts, but not premiums) | Individual: $8,700 Family: $17,400 but no more than $12,000 per person | Individual: $8,500 Family: $17,000 but no more than $10,600 a person | Individual: +$200 Family: +$400 |
| HHS annual out-of-pocket limit (TrOOP) | Individual: $12,000 Family: $24,000 but no more than $12,000 per person | Individual: $10,600 Family: $21,200 but no more than $10,600 per person | Individual: +$1,400 Family: +$2,800 |
| HSA catch-up contributions (age 55 or older)1 | $1,000 | $1,000 | No change2 |
1Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
2Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require legislative change.
HSA qualified expenses include:
- Copayments for medical expenses and drugs
- Coinsurance and deductibles determined by your health plan
- Doctor and hospital visits, including surgeries
- Chiropractor and podiatrist visits
- Prescription drugs
- X-rays and lab tests
- Vaccinations and immunizations
- OTC (over-the-counter) items
- Vision expenses
- Dental and orthodontia expenses
- Hearing tests, hearing aids, and other hearing loss expenses
- Treatment for alcoholism or drug abuse
- and more
Tax information and implications
There are different tax implications for the self-employed, partnerships or S-Corps. If you have questions about HSAs and tax implications, contact your accountant or refer to IRS Notice 2005-8.
Using Form 8889
Make sure your employees file Form 8889 each year they have an HSA. This form tells the IRS about all contributions and distributions made during the year and allows the account holder to list any after-tax contributions so they receive an "above-the-line" deduction.