FSA tax savings calculator: how much does a flexible spending account save you?
A flexible spending account lets you pay for eligible expenses with pre-tax dollars. This calculator shows your tax savings, what a forfeited balance would cost you and the break-even point.
Estimate your net FSA savings
Enter what you plan to contribute, your tax rates and how much you think could go unused.
Cannot exceed the IRS annual limit or the limit set by your plan.
Your marginal bracket.
Some states do not exempt FSA contributions, so adjust if needed.
Unused money may be forfeited, depending on your plan carryover or grace period.
Your estimate
This calculator gives an estimate only. It assumes the full 7.65 percent employee FICA rate applies, which is not true for pay above the Social Security wage base. Talk to a tax adviser about your situation.
How an FSA saves tax
Money you put into a health FSA comes out of your pay before federal income tax and, in most states, before state tax. It also avoids Social Security and Medicare payroll tax. The combined rate on each dollar is often 30 percent or more, which is where the savings come from.
The use-it-or-lose-it risk
FSA balances are subject to forfeiture rules. Many plans allow a limited carryover or a short grace period, but not all do, and unused money beyond those limits is lost. Set your contribution at an amount you are confident you will spend, such as known prescriptions, vision and dental costs and copays.
Common questions
What can I pay for with a health FSA?
Eligible medical, dental and vision expenses, including copays, deductibles and many over-the-counter items. Check your plan list.
Can I change my FSA contribution during the year?
Generally only after a qualifying life event, such as marriage, a birth or a change in coverage. Rules differ by plan.
What happens to unused money?
It depends on your plan. Some allow a limited carryover, some a grace period and some neither. Money outside those rules is forfeited.
Is an FSA the same as an HSA?
No. An HSA requires a qualifying high-deductible plan and the money belongs to you. An FSA is tied to your employer plan and has forfeiture rules.
Laws and rules referenced
26 U.S.C. § 125 — Cafeteria plans: pre-tax premium payments, plan limits and nondiscrimination rules.
Rev. Proc. 2025-32 — 2026 health FSA salary reduction limit ($3,400) and maximum carryover ($680).
This tool gives estimates for education, not tax or legal advice. Rules change, so confirm your situation with a qualified advisor.
Talk to us about a Section 125 plan
Book a 30-minute call and we will look at your workforce, your payroll and how a Section 125 plan with an FSA could fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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