HSA contribution limits for 2027 and 2026

HSA limits for 2025, 2026 and 2027

Since January 1, 2026, Bronze and Catastrophic plans available as individual coverage through an Exchange count as HDHPs, even if their deductible or out-of-pocket limit falls outside the table (IRS Notice 2026-5). Bronze plans offered through a small employer's SHOP generally don't count that way. More on plan rules in high-deductible health plan.

Example: starting an HDHP on July 1, 2027

Say Dana, age 40, starts self-only HDHP coverage on July 1, 2027, keeps it through the end of the year, and has no other coverage. This is an illustration, not tax advice.

1. Count eligible months. Dana is eligible July through December: 6 months.
2. Option 1, prorate: $4,500 x 6 / 12 = $2,250. No strings attached.
3. Option 2, the last-month rule: because Dana is eligible on December 1, 2027, Dana is treated as eligible for all of 2027 and can contribute the full $4,500.
4. The catch: under the last-month rule Dana must stay HSA-eligible for the testing period, December 1, 2027 through December 31, 2028.
5. If Dana drops the HDHP in 2028 (for a reason other than death or disability), the extra $2,250 that only the last-month rule allowed becomes taxable income for 2028, plus a 10% additional tax, about $225.
6. Deadline: Dana can make 2027 contributions until the tax filing deadline in April 2028.

If Dana's employer puts $500 into the HSA, Dana's own room shrinks by $500, to $1,750 under option 1 or $4,000 under option 2.

Rules that change your limit

• Employer money counts. Your employer's contributions, including pre-tax payroll contributions through a cafeteria plan, reduce what you can add yourself.
• Married couples. If either spouse has family HDHP coverage, both are treated as having family coverage, and the family limit is split between you (equally unless you agree otherwise). If both spouses are 55 or older, each can add $1,000, but each must put it in their own HSA.
• Medicare stops contributions. Your limit is zero starting the first month you are enrolled in Medicare, including months of backdated (retroactive) Medicare coverage. In the year you enroll, prorate by the months before Medicare.
• Other coverage. A general-purpose health FSA or HRA generally ends eligibility. A limited-purpose (dental and vision) FSA, dental and vision plans, and telehealth before the deductible are allowed.
• Direct primary care. For 2026 and 2027, a direct primary care arrangement of $150 a month or less ($300 for more than one person) doesn't end eligibility (Notice 2026-5; Rev. Proc. 2026-24). See HSA and direct primary care.

Deadlines and fixing an excess contribution

You can contribute for a year until that year's tax filing deadline, generally April 15 of the next year. IRS Publication 969 gives the example that 2025 contributions can be made through April 15, 2026, and that applies even if you stopped being eligible during the year, for the months you were eligible.

Putting in more than your limit is an excess contribution. It isn't deductible, and IRS Publication 969 says you generally owe a 6% excise tax on it for every year it stays in the account (figured on Form 5329). To avoid the tax, withdraw the excess and any earnings on it by your tax return's due date, including extensions, and report the earnings as other income. Your HSA custodian processes the withdrawal.

Self-employed? See HSA for self-employed people. For what the money can pay for, see what is HSA eligible.

This is general information, not tax advice. Check with your plan administrator, HSA custodian or a tax advisor about your situation.

Ask Gabriel with your numbers

Gabriel can work through the same math with your own start date, coverage, age and employer contribution, free. Ask Gabriel free.

Paying with HSA money is different from being allowed to contribute. The clinical portion of Gabriel Core or Plus may be paid with HSA funds, but membership could affect whether you can keep contributing to an HSA (IRS Notice 2026-5), so ask a tax advisor first.