US FSA Calculator
Calculate your Flexible Spending Account (FSA) election: pre-tax dollars for medical or dependent care, with the use-it-or-lose-it twist.
US HSA Calculator
Compare HSA (triple-tax-advantaged but requires HDHP) against FSA for elective planning.
Open US HSA Calculator →About this tool
The FSA calculator estimates how much pre-tax income you should route through a Flexible Spending Account for 2026, given your marginal federal, state, and FICA rates. The election decision is genuinely two-sided: every dollar contributed saves 30 to 45 cents in tax, but every dollar unused above the 660 USD carryover is forfeited under IRC Section 125 use-it-or-lose-it.
How it works
Tax saved = Election x (Federal MTR + State MTR + FICA 7.65%) Net cost = Election - Tax saved Optimal election = Expected annual medical spend (be conservative) Forfeit risk = max(0, Election - Spend - Carryover[660])
- Federal MTR: your top 2026 bracket: 10, 12, 22, 24, 32, 35, or 37 percent. The 22 percent bracket runs to 103,350 USD single.
- State MTR: 0 in TX, FL, WA, TN, NV; 4 to 6 percent in most others; 9.3 percent CA, 10.9 percent NY, 9.85 percent NJ.
- FICA: 6.2 percent Social Security up to 176,100 USD wage base plus 1.45 percent Medicare with no cap (0.9 percent extra above 200,000 USD single).
- Carryover: only Healthcare FSA can carry up to 660 USD into 2027 if the plan allows. Dependent Care FSA always forfeits.
Worked example
A married California engineer earning 180,000 USD elects 2,500 USD into a Healthcare FSA for 2026. Spouse and one child generate predictable expenses: dental cleanings (400 USD), prescription glasses (350 USD), chronic medication (1,400 USD), copays (450 USD).
- Federal bracket: taxable income after 30,000 USD standard deduction is 150,000 USD MFJ, which lands in the 22 percent bracket (covers 96,950 to 206,700 USD).
- California marginal: joint income at 180,000 USD hits the 9.3 percent CA bracket.
- FICA: 6.2 + 1.45 = 7.65 percent (below the 176,100 wage base for each spouse).
- Combined rate: 22 + 9.3 + 7.65 = 38.95 percent.
- Tax saved: 2,500 x 0.3895 = 974 USD; net cost of the 2,500 USD election is 1,526 USD.
- Expected spend: 400 + 350 + 1,400 + 450 = 2,600 USD, fully exhausts the election with 100 USD of out-of-pocket left over.
2026 FSA reference numbers
Source: IRS Rev. Proc. 2025-32 (announced October 2025) and IRC Section 125. Compare against HSA and 401(k) limits to size your benefit elections.
| Account | 2026 limit | 2025 limit | Carryover / catch-up |
|---|---|---|---|
| Healthcare FSA | 3,300 USD | 3,300 USD | 660 USD carryover (if plan allows) |
| Dependent Care FSA | 5,000 USD MFJ | 5,000 USD MFJ | None (not inflation indexed) |
| Limited Purpose FSA | 3,300 USD | 3,300 USD | 660 USD carryover; HSA compatible |
| HSA self only | 4,400 USD | 4,300 USD | 1,000 USD at age 55+ |
| HSA family | 8,750 USD | 8,550 USD | 1,000 USD at age 55+ |
| Commuter parking | 340 USD/mo | 325 USD/mo | Pre-tax; rollover allowed |
| Commuter transit | 340 USD/mo | 325 USD/mo | Pre-tax; rollover allowed |
Common mistakes
- Overestimating the election. Pick a number based on last year's actual receipts plus a known event (planned dental work, glasses). Padding the election for vague "what if" spend is where forfeits happen.
- Missing the run-out window. Most plans give 60 to 90 days after year end to submit 2026 receipts for 2026 expenses. The deadline is plan specific and easy to miss.
- Forgetting the HSA disqualification. A general purpose Healthcare FSA blocks HSA contributions for the entire year. If your employer auto-enrolled you into a tiny FSA, you cannot contribute to an HSA.
- Dependent Care FSA double dipping. The same 3,000 USD of childcare cannot fund both a Dependent Care FSA and the Child and Dependent Care Credit. Run both calculations: the FSA usually wins above 22 percent federal.
- Job change forfeit. Leave the employer mid-year and the unused Healthcare FSA balance is forfeited unless COBRA continuation is elected at full cost.
- Mid year election change. FSA elections are locked unless a qualifying life event (marriage, birth, divorce, spouse job loss). Plan for the year up front.
Related tools and glossary
Frequently asked questions
What is the FSA contribution limit for 2026?
For plan years beginning in 2026 the Healthcare FSA cap is 3,300 USD per employee (IRS Rev. Proc. 2025-32). The Dependent Care FSA cap stays at 5,000 USD per household (2,500 if married filing separately), unchanged since 1986 because it is not indexed for inflation. A Limited Purpose FSA used alongside an HSA has its own 3,300 USD cap and only covers dental and vision.
What happens to unused FSA dollars at year end?
By default unused balance is forfeited (the use-it-or-lose-it rule from IRC Section 125). Plans can offer one of two safety valves: a carryover of up to 660 USD to the next plan year (2026 limit), or a grace period of up to 2 months and 15 days to incur new expenses against the prior year balance. A plan may offer one or neither but not both. Dependent Care FSAs cannot use carryover, only grace period.
FSA vs HSA, which is better in 2026?
HSA wins if you have a qualifying High Deductible Health Plan (minimum 1,700 USD deductible single in 2026): triple tax advantage, no use-it-or-lose-it, portable across employers, and 4,400 USD self only or 8,750 USD family contribution cap. FSA wins if you do not have an HDHP, want to fund dependent care, or have very predictable annual medical spending you can exhaust each year.
Can I have both an FSA and an HSA?
Not a general purpose Healthcare FSA: it disqualifies you from HSA contributions because it counts as other health coverage. You can pair an HSA with a Limited Purpose FSA (dental and vision only) or a Post Deductible FSA, and a Dependent Care FSA is always compatible. Spousal FSAs also matter: if your spouse has a general purpose FSA you cannot contribute to your HSA.
Sources and further reading
- IRS Rev. Proc. 2025-32 (October 2025), inflation adjustments for 2026 including Healthcare FSA limit (3,300 USD) and carryover (660 USD).
- IRS Publication 502 (2025), Medical and Dental Expenses, definitive list of qualified Healthcare FSA expenses.
- IRS Publication 503 (2025), Child and Dependent Care Expenses, governs Dependent Care FSA and CDCC interaction.
- IRC Section 125 (cafeteria plans), the statutory basis for FSAs and the use-it-or-lose-it rule, with the 660 USD carryover added by IRS Notice 2013-71.
- SHRM (2025), FSA, HSA, Commuter, and Adoption Limits for 2026, employer benefits summary.