FSA Limits 2026: Health FSA $3,400, Dependent Care FSA $7,500
The 2026 health FSA limit is $3,400 per employee with a maximum carryover of $680. The dependent care FSA limit rose to $7,500 per household ($3,750 if married filing separately). Below are the official numbers with their sources, the rules for grace periods and carryover, and a calculator for your paycheck deduction and tax savings.
Maintained by Archie Chang · Limits checked against IRS Rev. Proc. 2025-32 and the statute October 18, 2026 · Methodology & sources
2026 FSA contribution limits
| Limit | 2026 amount | 2025 amount | Source |
|---|---|---|---|
| Health FSA salary reduction (also limited-purpose FSA) | $3,400 | $3,300 | Rev. Proc. 2025-32, section 3.15 |
| Health FSA maximum carryover | $680 | $660 | Rev. Proc. 2025-32, section 3.15 |
| Dependent care FSA, household | $7,500 | $5,000 | 26 U.S.C. 129(a)(2)(A) |
| Dependent care FSA, married filing separately | $3,750 | $2,500 | Pub. L. 119-21, section 70404 |
The $680 carryover is the most that can move from a 2026 plan year into 2027; the $660 figure was the cap for 2025 into 2026. The carryover rule applies to health FSAs only. A health FSA plan can have a grace period of up to 2½ months instead of the carryover, not both.
Health FSA payroll savings
Deduction per paycheck
$130.77
- Federal income tax saved
- $748.00
- FICA saved (7.65%)
- $260.10
- Estimated tax savings a year
- $1,008.10
- Cost of the election after savings
- $2,391.90
Estimate only. It adds your federal marginal rate to FICA: the 6.2% Social Security tax stops at the wage base ($184,500 in 2026) while the 1.45% Medicare tax applies to all wages. People in the 32% bracket and above are usually over the wage base. The 0.9% additional Medicare tax and state income tax are not included.
Dependent care FSA household cap
A spouse who is a full-time student or not able to care for themselves is treated as having earned income for each month of school or incapacity (26 U.S.C. 129(b)(2) and 21(d)(2)), so the earned-income cap may not apply.
Cap for this filing status: $7,500
$7,500
elected for the household
Within the cap, with $0 of room left.
The cap applies to the household, not to each spouse. On a joint return both spouses' elections count toward one $7,500 cap; each spouse filing separately has $3,750.
What the IRS and the statute say
Health FSA: Rev. Proc. 2025-32 states "the dollar limitation under § 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,400." and "If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $680." The limit comes from 26 U.S.C. 125(i).
Dependent care FSA: 26 U.S.C. 129(a)(2)(A) now reads that the excludable amount "shall not exceed $7,500 ($3,750 in the case of a separate return by a married individual)." Public Law 119-21 (section 70404) made the change for taxable years beginning after December 31, 2025. It sets a fixed dollar amount, so unlike the health FSA it does not rise with inflation.
Carryover: Notice 2020-33 "increases the maximum $500 carryover amount for a plan year to an amount equal to 20 percent of the maximum salary reduction contribution" under section 125(i) for that plan year, so the carryover limit rises in steps of $10 each time the health FSA limit rises by $50.
Grace period, carryover and use-it-or-lose-it
Unused health FSA money is generally forfeited at the end of the plan year. Publication 969 explains the two exceptions: "the plan can provide for either a grace period or a carryover." and "The plan can provide for a grace period of up to 2 1/2 months after the end of the plan year." A plan with a carryover cannot also offer a grace period for health FSAs (see Notice 2013-71).
- Grace period: up to 2½ months after the plan year to use the leftover balance. No dollar cap from the IRS.
- Carryover: up to $680 of unused 2026 money can be used in 2027. It does not reduce your 2027 election limit.
- Neither: any unused balance at the end of the plan year, after the run-out period, is forfeited.
Related limits: HSA contribution limits 2026 (a general-purpose health FSA generally makes you ineligible for an HSA; a limited-purpose FSA does not) and 401(k) contribution limits.
Health FSA limit history
| Year | Health FSA limit | Maximum carryover | IRS source |
|---|---|---|---|
| 2026 | $3,400 | $680 | Rev. Proc. 2025-32 |
| 2025 | $3,300 | $660 | Rev. Proc. 2024-40 |
| 2024 | $3,200 | $640 | Rev. Proc. 2023-34 |
| 2023 | $3,050 | $610 | Rev. Proc. 2022-38 |
| 2022 | $2,850 | $570 | Rev. Proc. 2021-45 |
| 2021 | $2,750 | $550 | Rev. Proc. 2020-45 |
| 2020 | $2,750 | $550 (Notice 2020-33) | Rev. Proc. 2019-44 |
| 2019 | $2,700 | $500 (Notice 2013-71) | Rev. Proc. 2018-57 |
| 2018 | $2,650 | $500 (Notice 2013-71) | Rev. Proc. 2017-58 |
Before Notice 2020-33 the carryover maximum was a fixed $500 (Notice 2013-71); the Revenue Procedures state the carryover from 2021. For the 2027 limit and how we tested a computed figure against this table, see FSA limits 2027.
FSA limits 2026 questions
What are the FSA limits for 2026?
For 2026 the health FSA salary reduction limit is $3,400 per employee, and a plan that allows carryover can let you roll over up to $680. The dependent care FSA limit is $7,500 per household ($3,750 if married filing separately), up from $5,000. The health FSA numbers come from IRS Rev. Proc. 2025-32; the dependent care amount is written into 26 U.S.C. 129.
What is the dependent care FSA limit for 2026?
$7,500 per household, or $3,750 for each spouse who is married and files separately. Public Law 119-21 raised the limit from $5,000 for taxable years beginning after December 31, 2025. The limit is also capped by earned income: you cannot exclude more than your earned income, or your spouse's if lower. Your employer can set a lower plan maximum.
Is the dependent care FSA limit per person or per household?
Per household. On a joint return, both spouses' dependent care FSA elections count toward one $7,500 cap. A married person filing separately has a $3,750 cap. Amounts above the cap are included in taxable income.
What is the 2026 health FSA carryover limit?
$680. Under IRS Notice 2020-33 the maximum carryover is 20 percent of that plan year's salary reduction limit, which is 20 percent of $3,400. Carryover is optional for the employer, so check your plan. The previous year's figure was $660.
Can my plan have both a grace period and a carryover?
No. IRS Publication 969 says a plan can provide either a grace period of up to 2½ months after the plan year ends or a carryover, and a plan with a carryover is not permitted to also offer a grace period for health FSAs. A plan can offer neither, in which case unused money is forfeited at the end of the plan year (the use-it-or-lose-it rule).
Does the health FSA limit apply to each employer?
The limit applies to salary reduction contributions, not to employer contributions, although flex credits that employees can take as cash count as salary reduction. Under IRS Notice 2012-40, an employee with two or more employers that are not in the same controlled group can elect up to the limit under each employer's health FSA. Spouses each have their own limit. A limited-purpose health FSA, used alongside an HSA, is still a health FSA, so we apply the same $3,400 limit; Notice 2012-40 limits health FSA salary reductions and excludes only other kinds of FSAs, such as dependent care.
Is the dependent care FSA limit adjusted for inflation?
No. The $7,500 amount is written into the statute and is not indexed. The health FSA limit, by contrast, is indexed each year and the IRS announces it in a revenue procedure, usually in the fall. See our FSA limits 2027 page for what is known about next year.
How much does an FSA save in taxes?
FSA contributions are taken out of pay before federal income tax and FICA, so the saving is your election times your federal marginal rate plus 7.65% for Social Security and Medicare tax when your wages are under the Social Security wage base, or 1.45% above it. For example, a $3,400 election at a 22% federal rate saves about $1,008 before any state tax. Use the calculator above for your own numbers.
FSA limits by year and related limits
Authoritative sources: IRS Rev. Proc. 2025-32 · 26 U.S.C. 125 · 26 U.S.C. 129 · Pub. L. 119-21 · IRS Publication 969 · IRS Notice 2020-33 · IRS Notice 2012-40