The IRS sets the FSA limits for flexible spending accounts every year, and the numbers move with inflation, so the right figure depends on the plan year you are enrolling for. For 2025, the maximum health care FSA contribution is $3,300, up from $3,200 in 2024. For 2026, the limit rises again to $3,400 under IRS Revenue Procedure 2025-32. This guide lays out the limits by year – health FSA, carryover, dependent care, and the limited-purpose FSA – so you can plan your open enrollment election with the correct number in hand. This article is general information, not tax advice.
These limits are adjusted annually based on inflation, and they affect how much you can set aside for medical expenses, dependent care, and carryover balances. Here is a complete, year-by-year breakdown of every number that matters for the plan year you are choosing.
Health Care FSA Maximum: $3,300 (2025) and $3,400 (2026)
The headline number for 2025 is $3,300, and for 2026 it increases to $3,400. This is the maximum amount an individual employee can elect to contribute to a general-purpose health care FSA during the plan year. The funds are deducted from your paycheck on a pre-tax basis, reducing your taxable income for federal income tax, most state income taxes, and FICA payroll taxes.
This limit applies per employee, not per household. If you and your spouse both have access to FSAs through separate employers, each of you can contribute up to the annual maximum – a combined household capacity of $6,600 in 2025 or $6,800 in 2026 of pre-tax medical spending. Because the IRS publishes the next year’s figure in the fall (Rev. Proc. 2025-32 set the 2026 amount), always confirm the current limit for your specific plan year before you elect.
Employer contributions, if offered, may sit on top of this limit or count toward it depending on plan design. Check your specific plan documents or ask your HR department to confirm how employer contributions interact with the employee maximum at your company.
FSA Carryover Limit: $660 (2025) and $680 (2026)
For plans that offer a carryover provision, the maximum amount that can roll into the next plan year is $660 for 2025 and $680 for 2026. This is the IRS-set ceiling; your employer may choose a lower carryover amount or may not offer carryover at all.
The carryover does not reduce your contribution limit for the new plan year. If you carry over $660 from 2025 and elect $3,400 for 2026, you will have $4,080 available to spend on qualified medical expenses. The carryover provision is one of two alternatives to the strict use-it-or-lose-it rule. The other is a grace period of up to 2.5 months, during which you can spend remaining funds from the prior plan year. Your employer selects one option or neither; they cannot offer both simultaneously.
Dependent Care FSA Limit: $5,000 – and $7,500 Starting in 2026
The dependent care FSA (DCFSA) is a separate account type from the health care FSA and has its own limit set by statute (Internal Revenue Code Section 129) rather than by the annual inflation adjustment. For many years the exclusion was $5,000 per household for married couples filing jointly (or $2,500 for married individuals filing separately), and that figure applies for 2025.
That changed with the One Big Beautiful Bill Act (OBBBA) of 2025, which raised the dependent care FSA exclusion to $7,500 (or $3,750 if married filing separately), effective for plan years beginning in 2026. This is the first increase to the dependent care cap in decades. Because employer plans must be amended to adopt the higher limit and IRS guidance is still being finalized, verify the current amount with the IRS and confirm your own plan offers it before electing above $5,000.
Dependent care FSA funds cover expenses like daycare, preschool, before- and after-school care, and day camp for children under 13. They can also cover care for a disabled spouse or dependent who lives with you. Unlike the health care FSA, the dependent care FSA requires you to incur the expense before you can be reimbursed, as funds are only available as contributions accumulate. For the full list of qualifying expenses, see our guide to dependent care FSA eligible expenses.
Limited-Purpose FSA (LPFSA): Same Dollar Limit, Narrower Use
A limited-purpose FSA (LPFSA) follows the same annual dollar limit as the general health care FSA – $3,300 in 2025 and $3,400 in 2026 – but it can only be used for qualified dental and vision expenses (and, after you meet your deductible, other medical costs, depending on plan design). Its purpose is HSA compatibility: a general-purpose health FSA disqualifies you from contributing to a health savings account, but an LPFSA does not, because it is restricted to dental and vision.
If you have a high-deductible health plan and contribute to an HSA, an LPFSA lets you set aside additional pre-tax dollars for glasses, contacts, orthodontia, and dental work without giving up your HSA eligibility. Confirm your employer offers an LPFSA option during open enrollment, as not all plans do.
How the Limits Compare by Year
The health care FSA limit has risen steadily. In 2022 it was $2,850. It jumped to $3,050 in 2023, then $3,200 in 2024, $3,300 in 2025, and $3,400 in 2026. Each increase reflects the IRS’s annual inflation adjustment, which is tied to the Consumer Price Index.
The carryover limit has followed a similar path, rising from $570 in 2022 to $610 in 2023, $640 in 2024, $660 in 2025, and $680 in 2026. Tracking these increases year over year helps you adjust your election during open enrollment to capture the maximum tax benefit. The table below summarizes the recent figures.
| Plan year | Health FSA limit | Maximum carryover | Dependent care FSA (MFJ) |
|---|---|---|---|
| 2022 | $2,850 | $570 | $5,000 |
| 2023 | $3,050 | $610 | $5,000 |
| 2024 | $3,200 | $640 | $5,000 |
| 2025 | $3,300 | $660 | $5,000 |
| 2026 | $3,400 | $680 | $7,500 (OBBBA – verify) |
How to Calculate Your Optimal Contribution
Setting the right contribution amount under the current FSA limits requires estimating your household’s medical expenses for the upcoming year. Start with fixed, predictable costs: insurance copays for regular appointments, prescription medication costs, dental cleaning fees, and vision exam charges. Add any planned procedures such as orthodontia payments, scheduled surgeries, or physical therapy sessions.
Then account for variable expenses. Over-the-counter medications, first-aid supplies, contact lens solution, and sunscreen are all eligible and add up over 12 months. A household that spends $40 per month on OTC medical products is looking at nearly $500 in annual FSA-eligible spending from that category alone. For the full list, see our FSA eligible items guide.
A conservative approach is to contribute an amount equal to your known, recurring expenses. An aggressive approach is to max out ($3,300 in 2025 or $3,400 in 2026) and plan purchases accordingly. The risk with the aggressive approach is forfeiting unspent funds, though the carryover provision (if your plan offers it) mitigates that risk by up to $660 or $680 depending on the year.
Impact on Your Take-Home Pay
Contributing to your FSA reduces your gross income by that amount before taxes. The actual reduction in your take-home pay is less than the contribution because of the tax savings. For an employee in the 22% federal tax bracket with a 5% state income tax rate, a $3,300 election saves roughly $726 in federal tax, $165 in state tax, and about $252 in FICA taxes – total savings of about $1,143. Your net cost for $3,300 in medical spending power is approximately $2,157, spread across your paychecks for the year. A $3,400 election in 2026 scales similarly. These are rough estimates; your actual savings depend on your bracket, state, and situation.
That effective discount of roughly one-third on medical expenses is why financial advisors often recommend FSAs for anyone with predictable healthcare spending. The tax savings are immediate, unlike investment returns that carry risk and uncertainty.
Key Deadlines and Rules to Remember
Your election must be made during open enrollment, typically in the fall before the new plan year begins. Once set, you generally cannot change your contribution amount unless you experience a qualifying life event such as marriage, birth of a child, or loss of other coverage. Plan your contribution carefully since you are locked in for the full year.
Your entire annual health FSA election is available on day one of the plan year, even though deductions occur gradually. This means you can use the full $3,300 (2025) or $3,400 (2026) in January if needed. If you leave your employer mid-year, you keep any reimbursements already received but lose access to remaining funds in most cases. (The dependent care FSA works differently – funds are only available as they accrue.)
Frequently Asked Questions
What is the FSA contribution limit for 2026?
The 2026 health care FSA limit is $3,400, up from $3,300 in 2025, per IRS Revenue Procedure 2025-32. The maximum carryover into the following year rises to $680. Your employer may set a lower limit, so confirm during open enrollment.
Are the FSA limits the same for all employers?
The IRS maximum is a ceiling ($3,300 for 2025, $3,400 for 2026), but your employer may set a lower limit for its plan for administrative or nondiscrimination-testing reasons. Confirm your plan’s specific limit during open enrollment.
Can I contribute to both a health care FSA and a dependent care FSA?
Yes. These are separate accounts with separate limits. You can contribute up to the health FSA maximum and up to the dependent care maximum in the same plan year. The funds cannot be transferred between the two accounts, and each has its own set of eligible expenses.
Did the dependent care FSA limit really increase to $7,500?
The One Big Beautiful Bill Act raised the dependent care FSA exclusion to $7,500 ($3,750 if married filing separately) starting in 2026, the first increase in decades. Because plans must adopt the change and IRS guidance is still being finalized, verify the current figure with the IRS and confirm your employer’s plan offers it.
Does the FSA limit include employer contributions?
It depends on your plan design. In some plans, employer contributions count toward the limit; in others, they are in addition to your employee election. Ask your HR department or plan administrator for clarification.
What if I exceed the FSA limit?
Your employer’s payroll system should prevent you from exceeding the IRS maximum. If an error occurs and you over-contribute, the excess amount may need to be returned and included in your taxable income. Contact your plan administrator promptly if you believe an error has occurred.
Plan Your FSA Election With Confidence
The FSA limits give you up to $3,300 in pre-tax medical spending power for 2025 and $3,400 for 2026, with a $660 or $680 carryover safety net if your plan offers it. Review your household’s expected medical expenses, factor in the tax savings, and make your election during open enrollment. For help deciding between an FSA and an HSA, read our HSA vs FSA comparison. For the complete list of what you can buy, visit our FSA eligible items guide. And for broader cost management strategies, explore our healthcare costs guide.
TL;DR & disclaimer: For 2025, the health care FSA limit is $3,300 with a $660 maximum carryover; for 2026 it rises to $3,400 with a $680 carryover (IRS Rev. Proc. 2025-32). The dependent care FSA was $5,000 for years and increases to $7,500 for 2026 under OBBBA (verify current). A limited-purpose FSA follows the same health FSA dollar limit but covers only dental and vision. This article is general information, not tax or financial advice; contribution limits, plan rules, and tax outcomes vary by employer and by year and are subject to change. Confirm current figures with the IRS and consult a qualified tax advisor about your specific situation.
Sources
- IRS Revenue Procedure 2025-32 – 2026 inflation-adjusted amounts, including the health FSA limit ($3,400) and carryover maximum ($680)
- IRS Revenue Procedure 2024-40 – 2025 amounts (health FSA $3,300; carryover $660)
- IRS Publication 969 – Health Savings Accounts and Other Tax-Favored Health Plans (FSA rules, carryover, grace period, use-it-or-lose-it)
- Internal Revenue Code Sections 125 (cafeteria plans) and 129 (dependent care assistance)
- One Big Beautiful Bill Act of 2025 – increase of the dependent care FSA exclusion to $7,500 effective 2026 (confirm current IRS guidance)