How much can I put in an HSA in 2027?

How have HSA limits changed since 2020?

The self-only limit has risen from $3,550 in 2020 to $4,500 in 2027, an increase of $950 or about 27%. The family limit has risen from $7,100 to $9,000, up $1,900.

Who can contribute to an HSA?

To contribute for a month, you need qualifying high deductible plan coverage on its first day, no other disqualifying coverage and no Medicare, and nobody else can claim you as a dependent. Since January 1, 2026, marketplace bronze and catastrophic plans also count. On the first day of the month, all of these must be true:

• You are covered by a qualifying high deductible health plan.
• You have no other health coverage that is not a qualifying plan, with some exceptions such as dental, vision and certain limited coverage.
• You are not enrolled in Medicare.
• Nobody else can claim you as a dependent on their tax return.

Since January 1, 2026, bronze and catastrophic plans available through a marketplace count as HSA compatible, even if they would not meet the usual high deductible definition. The IRS says they do not have to be bought through the marketplace to qualify. Silver and gold plans still have to meet the deductible and out of pocket limits in the table above.

Direct primary care memberships also work with an HSA from 2026 if the monthly fee is within the limit, which for 2027 is $150 for one person and $300 for a family. Telehealth and remote care before you meet the deductible no longer disqualify you.

How much tax can an HSA save me?

An HSA is taxed in your favor three times: contributions lower your taxable income, growth is not taxed, and withdrawals for qualified medical costs are not taxed. The table shows only the first benefit, the federal income tax saved by a full contribution.

If the money comes out of your paycheck through your employer's plan, you may also avoid the 7.65% Social Security and Medicare payroll tax, which is another $344 on $4,500. Social Security tax stops once your wages pass a yearly limit, so high earners save less. Most states follow the federal treatment, but a few do not, so check yours. Our free calculator below does the arithmetic for your own rate.

What rules apply when I take the money out?

Spending HSA money on qualified medical costs is tax free. The rules that catch people are about timing and amounts:

• Withdrawals for anything else are taxed as income and carry an additional 20% tax. The 20% does not apply after age 65, after disability or after death.
• You can make 2027 contributions until the tax filing deadline in 2028, not counting extensions.
• Your employer's contributions count toward your limit, so subtract them before you add your own.
• Contribute too much and you owe a 6% excise tax (an extra tax) for each year the extra stays in the account. You can avoid it by taking the extra out, with its earnings, by the filing deadline.
• If you become eligible after January, the last month rule lets you contribute the full year's amount if you are eligible on December 1. To use it, you must stay eligible through the end of the following year. If you do not, part of that contribution becomes taxable income and carries an additional 10% tax.

What happens to my HSA when I go on Medicare?

Your contribution limit becomes zero starting the first month you are enrolled in Medicare, including Part A coverage that starts retroactively. You keep the money already in the account and can spend it on qualified medical costs.

If you sign up for premium-free Part A after you turn 65, or apply for Social Security, Part A can start up to six months back. Stop contributing at least six months before you apply so you do not put in money you are no longer allowed to contribute.

After 65 you can use HSA money to pay Medicare Part B, Part D and Medicare Advantage premiums, but not Medigap premiums. Withdrawals for other purposes are taxed as income with no 20% additional tax.

Our Medicare timeline guide shows the sign up dates that decide when your HSA contributions must stop.