| Item | 2026 (official) | 2027 |
|---|---|---|
| Health FSA salary reduction limit | $3,400 | Not yet announced |
| Maximum carryover (if the plan allows) | $680 | Not yet announced |
| Dependent care FSA | $7,500 | $7,500 under current law (details) |
Source for 2026: IRS Rev. Proc. 2025-32, section 4.15. Checked October 18, 2026.
What the limit means
- It is the most an employee can elect through salary reduction in one plan year. Each spouse with their own employer plan has their own limit.
- Your employer’s plan can set a lower cap, so the number in your enrollment portal controls.
- The limit applies to the employee’s election; employer contributions to a health FSA, if any, are separate rules.
Worked example: the 2026 limit spread over paychecks
| Pay schedule | Paychecks | Per paycheck for $3,400 |
|---|---|---|
| weekly | 52 | $65.38 |
| every two weeks | 26 | $130.77 |
| twice a month | 24 | $141.67 |
| monthly | 12 | $283.33 |
Assumptions: a 22% federal bracket, no state income tax, and payroll deduction so the 7.65% FICA tax is also avoided. Estimated tax saved on $3,400: $3,400 × (22% + 7.65%) = $1,008. That only helps if you actually spend the money on eligible expenses, because most unused FSA money is forfeited. See FSA carryover.
FSA and HSA together
A general-purpose health FSA generally makes you ineligible to contribute to an HSA in the same year. A limited-purpose FSA (dental and vision) is allowed. Compare the two in HSA vs FSA; the HSA limits are on the 2027 HSA limits page.
Related: 2027 limits hub · FSA carryover · dependent care FSA.
This is general information, not tax or insurance advice. Confirm details with your plan documents, the IRS and a qualified professional.
General education, not insurance, tax or legal advice. Figures from IRS and HHS publications; confirm with your plan documents.