FSA Calculator 2026
See your 2026 Healthcare or Dependent Care FSA tax savings — and your forfeiture risk if you over-contribute.
FSA contribution limits for 2026 are $3,400 for a Healthcare FSA (per IRS Rev. Proc. 2025-32) and $7,500for a Dependent Care FSA per household (up from $5,000, per the 2025 OBBBA legislation). Because FSA contributions run through payroll pre-tax, they cut federal income tax, state income tax, and FICA (7.65%) all at once — typically a 30–40% effective discount on eligible expenses. The catch is "use-it-or-lose-it": unspent Healthcare FSA funds above the $680 carryover (or outside a grace period) are forfeited to your employer at year end.
How FSA Tax Savings & Forfeiture Are Calculated
An FSA election reduces your taxable payroll income dollar-for-dollar, so the tax savings are your contribution multiplied by your combined marginal rate. The forfeiture risk is separate: it depends on how much of your election actually gets spent on eligible expenses before the plan year (plus any grace period or carryover) ends.
| Variable | Definition |
|---|---|
| Healthcare Limit | $3,400 per employee for 2026 (indexed annually for inflation) |
| Dependent Care Limit | $7,500 per household / $3,750 married filing separately for 2026 |
| Carryover | Up to $680 of unused Healthcare FSA funds may roll to next year, if your employer allows it |
| Grace Period | Alternative to carryover — an extra 2.5 months to spend the full balance (cannot combine with carryover) |
| FICA | 7.65% (6.2% Social Security + 1.45% Medicare) — always saved since FSAs run through payroll |
Worked Example: You elect $3,000 into a Healthcare FSA, in the 22% federal bracket with 5% state tax. Tax savings = $3,000 × 34.65% = $1,040. If you only incur $2,600 in eligible expenses and your employer offers the $680 carryover, all $400 of the unspent balance carries over — $0 forfeited, and your full $1,040 in tax savings stands. Without carryover or a grace period, that same $400 would be forfeited, cutting your net benefit to $640.
💡 Expert Pro-Tip
Under-Elect, Don't Over-Elect:Because forfeited FSA funds go to your employer, not you, the downside of guessing too low is minor — you just pay a bit more out-of-pocket for that one extra expense. The downside of guessing too high is real money lost. Before open enrollment, pull last year's actual medical or dependent-care spending from your bank or HR portal rather than estimating from memory. For a Healthcare FSA, a safe rule of thumb is to elect your known recurring costs (prescriptions, contacts, orthodontia payments) plus one modest buffer — and let the $680 carryover (if your employer offers it) absorb any surprise. For Dependent Care FSA, elect close to your actual contracted daycare or after-school-care tuition, since that spending is usually predictable to the dollar.
FSA FAQ
What is the FSA contribution limit for 2026?
The 2026 Healthcare FSA limit is $3,400 per employee (IRS Rev. Proc. 2025-32). The Dependent Care FSA limit is $7,500 per household, or $3,750 if married filing separately — a major jump from the $5,000 cap that had been fixed since 1986, enacted by the One Big Beautiful Bill Act (OBBBA). Employers must formally amend their cafeteria plan documents to offer the new dependent care limit, so verify your specific plan's limit during open enrollment.
What can I buy with a Healthcare FSA?
Copays, deductibles, coinsurance, prescriptions, dental and orthodontic work, vision exams and glasses/contacts, hearing aids, and most IRS Section 213(d) qualified medical expenses. Over-the-counter medications and menstrual care products also qualify without a prescription. Cosmetic procedures and general wellness items (like gym memberships) do not qualify.
What happens to my FSA if I leave my job?
For a Healthcare FSA, you generally forfeit the unspent balance unless you elect COBRA continuation for the FSA specifically. However, you keep access to the full annual election amount (not just what you've contributed so far) for expenses incurred while still employed — this is sometimes called the "uniform coverage rule." Dependent Care FSA funds are only reimbursable up to what you've actually contributed by your last paycheck.
Can I use a Dependent Care FSA and the Child and Dependent Care Tax Credit together?
Not on the same dollars. Any expenses reimbursed through a Dependent Care FSA reduce the amount eligible for the Child and Dependent Care Tax Credit dollar-for-dollar. For most middle-to-high earners, the FSA's payroll tax savings (federal + state + FICA) beats the tax credit, but run both numbers if your household income is lower — the credit can be worth more in some brackets.
FSA Calculator 2026
Your FSA Details
2026 limit: $3,400
Copays, deductibles, prescriptions, dental, vision, and other IRS-qualified medical costs.
Tax Rates
FICA savings of 7.65% is always included — FSA contributions run through payroll pre-tax.
Plan Rules
Your 2026 FSA Results
✓ No Forfeiture Risk
Based on your results — what to do next:
Compare against an HSA instead
Your FSA saves $1,040/yr but risks forfeiting unused funds. An HSA rolls over indefinitely and can invest — see if you're HDHP-eligible.
See your full tax picture
Your FSA reduces taxable income by $3,000. See how that flows through to your total take-home pay.
Plan your expenses before you elect
You estimated $2,600 in eligible costs. Build a full budget to pressure-test that number before open enrollment locks it in.
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