HSA tax savings calculator: what does a health savings account really cost you?
Money you put in a health savings account is not taxed as income, which lowers the real cost of every dollar you save. This calculator shows your tax savings and the after-tax cost of your contribution.
Estimate your HSA tax savings
Enter your contribution, your tax rates and any money your employer adds.
Subject to the IRS annual limit, which changes each year.
Added to your account. It does not reduce your tax savings.
Your marginal bracket.
A few states do not follow the federal treatment of HSAs, so adjust if needed.
Your estimate
This calculator gives an estimate only and is not tax advice. HSA eligibility, annual limits and state treatment vary. Talk to a tax adviser.
How an HSA saves tax
An HSA is available with a qualifying high-deductible health plan. Contributions reduce your taxable income, the money can grow without tax and withdrawals for qualified medical expenses are tax free. When you contribute through payroll, you also avoid Social Security and Medicare tax, which is why payroll contributions save more than contributions made on your own. Owners of S corporations, partnerships and sole proprietorships have special rules, covered in HSA Rules for Business Owners.
What the money is for
The account belongs to you and stays with you if you change jobs. Money you do not spend rolls over from year to year, so many people treat an HSA as a long-term medical savings account. Employer contributions add to the balance and do not count against your own tax savings.
Common questions
Who can contribute to an HSA?
You need to be covered by a qualifying high-deductible health plan and generally cannot have other disqualifying coverage. Check the rules for your situation (26 U.S.C. § 223(c)).
What is the contribution limit?
The IRS sets an annual limit that can change each year and is higher for family coverage and for people 55 and older (26 U.S.C. § 223(b); Rev. Proc. 2025-19 for 2026: $4,400 self-only, $8,750 family; Rev. Proc. 2026-24 for 2027: $4,500 and $9,000; plus $1,000 for age 55 and older). Check the current figure before you set your contribution.
Do I lose the money at the end of the year?
No. Unlike many flexible spending accounts, HSA balances roll over and stay with you.
Is an HSA the same as an FSA?
No. An HSA needs a qualifying plan and belongs to you. An FSA is tied to your employer plan and has forfeiture rules.
Laws and rules referenced
26 U.S.C. § 223 — Health savings accounts: eligibility, contribution limits and the age 55 catch-up.
26 U.S.C. § 106(d) — Employer contributions to an HSA are excluded from the employee’s income.
26 U.S.C. § 125 — Cafeteria plans, the payroll route for pre-tax contributions.
Rev. Proc. 2025-19 (2026 limits) and Rev. Proc. 2026-24 (2027 limits) — Inflation-adjusted HSA and high-deductible health plan amounts.
IRS Publication 969 — IRS guide to health savings accounts and other tax-favored health plans.
This tool gives estimates for education, not tax or legal advice. Confirm your situation with a tax professional.
Talk to us about HSA-eligible plans
Book a 30-minute call and we will look at your group, your budget and the HSA-eligible plan designs that fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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