HSA Calculator 2026
Triple tax advantage: tax-deductible contributions, tax-free growth, tax-free medical withdrawals.
Maxing out an individual HSA at $4,300/year for 30 years at 7% return produces a balance of approximately $430,000 — all of which can be spent on medical expenses tax-free, or withdrawn for any purpose after age 65 (taxed as ordinary income, like a Traditional IRA).
Projected HSA Balance
$188,620.26
Annual Tax Savings
$946.00
Total Tax Savings (20yr)
$18,920.00
Total Contributions
$86,000.00
Investment Growth
$102,620.26
2026 HSA limits: $4,300 individual, $8,550 family. Must have HDHP. Age 65+ can use for non-medical.
2026 HSA limits: $4,300 individual, $8,550 family. Must have HDHP. Age 65+ can use for non-medical.
About This Calculator
A Health Savings Account (HSA) is the only account in the US tax code with a triple tax advantage: contributions are tax-deductible (pre-tax if through payroll), investment growth is tax-free, and withdrawals for qualified medical expenses are tax-free. No other account offers all three.
To contribute to an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). In 2026, an HDHP must have a minimum deductible of $1,650 (individual) or $3,300 (family). The 2026 HSA contribution limits are $4,300 individual and $8,550 family, with a $1,000 catch-up contribution for those 55 and older.
The ideal HSA strategy: pay current medical expenses out-of-pocket (if you can afford to), let the HSA invest and compound tax-free, and reimburse yourself decades later from the balance. There's no time limit on reimbursements — medical expenses from 2026 can be reimbursed in 2045, providing decades of tax-free growth.
How to Use
- 1Enter your planned annual HSA contribution ($4,300 individual limit, $8,550 family in 2026).
- 2Select your coverage type (individual or family) to confirm the limit.
- 3Enter your marginal tax bracket — this determines your annual tax savings from contributions.
- 4Set your expected investment return rate (many HSAs offer index fund options).
- 5Enter your investment horizon (years until you plan to use the funds).
Formula & Methodology
HSA Balance = Annual Contribution × ((1 + r)^n − 1) / r × (1 + r), where r = annual investment return, n = years of contributions. Annual Tax Savings = Contribution × (Federal Rate + State Rate). Triple Tax Benefit = Contribution Tax Deduction + Growth Tax Savings + Withdrawal Tax Savings.
Frequently Asked Questions
What are the 2026 HSA contribution limits?
For 2026: Individual HDHP coverage: $4,300. Family HDHP coverage: $8,550. Catch-up contribution (age 55+): additional $1,000. Contribution limits adjust annually for inflation. Funds roll over year to year — there is no "use it or lose it" rule like Flexible Spending Accounts (FSAs).
What are qualified medical expenses for HSA?
HSA funds can be used tax-free for: doctor visits, prescription drugs, dental and vision care, mental health services, long-term care insurance premiums, and COBRA premiums. After age 65, HSA funds can be spent on anything (medical or not) and are taxed as ordinary income — effectively making the HSA a second Traditional IRA.
Can I invest my HSA funds?
Yes, and you should. Most HSA providers allow investing in mutual funds once your balance exceeds a threshold (typically $500–$2,000). The best strategy is to invest in low-cost index funds and let the balance compound for decades, using it as a stealth retirement account for medical costs.
What is the minimum deductible for an HDHP in 2026?
2026 HDHP minimums: Individual deductible: $1,650. Family deductible: $3,300. Out-of-pocket maximum: $8,300 individual, $16,600 family. Your plan must meet these thresholds for HSA contributions to be allowed. Verify with your insurance carrier that your plan qualifies as an HDHP.
Sources & References
Last updated: 2026-04-12