What HR needs to know about the new HSA contribution limits

The IRS earlier this month released 2026 contribution limits for health savings accounts, with a modest jump to match inflation rates.

The self-only coverage HSA contribution limit is increasing from $4,300 this year to $4,400 in 2026, while family coverage contribution limits will rise from $8,550 to $8,750. From 2024-25, individual contribution limits increased about 3.6% and family limits jumped about 3%; for next year, limits will rise about 2.3% for both types of accounts.

Increases to HSA contribution limits for this year and next are about on par with inflation at the time the limits were announced.

HSAs are available only to those enrolled in high-deductible health plans, the definition of which will also shift slightly in 2026: Next year, HDHP for self-only coverage will require a minimum deductible of $1,700, up $50 from this year, and a maximum out-of-pocket limit of $8,500, an increase of $200 from 2025. For family coverage, high-deductible plans will be defined as those with minimum deductibles of $3,400, up from $3,300 this year, with maximum out-of-pocket costs of $17,000, compared to $16,600 this year.

The limit for excepted benefit health reimbursement arrangement (EBHRA) plans also rose slightly, from $2,150 to $2,200 next year.

The new limits will take effect in January.

What are the 2026 HSA contribution limits?

What are the 2026 HDHP contribution limits?

What are the EBHRA contribution limits?

Itamar Romanini, vice president and general manager of HSA Store, a provider of consumer education and account management tools, said in a statement after the HSA contribution limits announcement that an HSA is a “powerful financial tool for people of all ages and income levels.”

HSAs deliver a “triple-tax advantage,” he recently wrote for HR Executive: reducing employees’ taxable income, helping them accrue tax-free savings and providing access to tax-free withdrawals when needed for eligible expenses.

“Health savings accounts deliver significant financial perks, and as such, they play an important role in the financial wellness offerings for organizations of all sizes,” Romanini wrote.

Given ongoing and growing global economic uncertainty, employee financial wellness will likely become an even greater HR priority in the coming months, experts say. A new study from Prudential finds that employees are just as stressed about the cost of everyday goods as they are about their ability to save for retirement. More than one-quarter are living paycheck to paycheck—and only about one-third say their employer is effectively helping them with immediate financial stresses.

Clear communication needed

HSAs have been available for more than 40 years, says Jenna Everhart, senior vice president of HR for Health-E Commerce, parent brand to HSA Store and other firms. Yet, she recently wrote for HR Executive, the accounts can often feel “confusing” for employees.

This necessitates education and support from HR and benefits teams—facilitated by “simple and straightforward communication” about the benefits and options available.

Consider emphasizing, Romanini adds, that both employees and their eligible family members can contribute for the biggest tax impact, and that contributions can be made year-round—up to and including tax-filing day. Those 55 and older, he adds, are eligible to contribute an extra $1,000 in “catch-up” contributions.

Communication should happen year-round and not just during open enrollment, Everhart says. For instance, offer messaging about the new HSA contribution limits, ideas on how to use the pre-tax savings or reminders about contribution deadlines, and leverage different modalities: email, the company intranet, posters or employee meetings.

“In short, make it easy for employees and their families to use and fully enjoy the tax advantages and savings offered by spending accounts,” she writes. “Clear, concise and frequent messages are often more effective than a singular collection of text-heavy documents.”