The 2027 HSA contribution limits are $4,500 for self-only coverage and $9,000 for family coverage, up from $4,400 and $8,750 in 2026. If you’re 55 or older, you can add another $1,000. With open enrollment underway at many employers, now is the time to decide whether a high-deductible health plan with a health savings account makes sense for 2027 and how much to put in it. (IRS Rev. Proc. 2026-24)
2027 HSA Contribution Limits at a Glance
The IRS adjusts HSA and high-deductible health plan (HDHP) figures for inflation each year. Here’s how 2027 compares with 2026:
| Item | 2026 | 2027 |
| HSA contribution limit, self-only | $4,400 | $4,500 |
| HSA contribution limit, family | $8,750 | $9,000 |
| Catch-up contribution (age 55+) | $1,000 | $1,000 |
| HDHP minimum deductible, self-only | $1,700 | $1,750 |
| HDHP minimum deductible, family | $3,400 | $3,500 |
| HDHP out-of-pocket maximum, self-only | $8,500 | $8,700 |
| HDHP out-of-pocket maximum, family | $17,000 | $17,400 |
Sources: IRS Rev. Proc. 2026-24 for 2027; Fidelity for 2026 and the catch-up amount.
A few details matter:
- The limit covers all contributions combined, including your employer’s. If your employer puts in $1,000 for family coverage, you can add $8,000 in 2027.
- The $1,000 catch-up isn’t adjusted for inflation. If both spouses are 55 or older, each needs their own HSA to make a catch-up contribution.
- You have until the tax filing deadline, generally April 15, 2028, to make 2027 contributions (IRS Publication 969).
Why HSAs Are One of the Best Tax Deals Available
HSAs offer a triple tax benefit:
- Contributions are deductible or come out of your paycheck pre-tax.
- Growth is tax-free while the money stays in the account, including investment earnings.
- Withdrawals are tax-free when used for qualified medical expenses.
Payroll contributions through an employer’s cafeteria plan generally also avoid Social Security and Medicare taxes (IRS Publication 969). That’s something a deduction on your tax return can’t do.
Example: A family in the 22% federal bracket that contributes the full $9,000 through payroll in 2027 avoids about $1,980 of federal income tax and about $688 of Social Security and Medicare taxes, for a total of roughly $2,668 a year, before any state tax savings. (Social Security tax savings apply only to wages below the $192,300 wage base.)
If you aren’t sure what you can spend HSA money on, our guide to qualified medical expenses for an HSA covers the common items and the gray areas.
How to Max Out Your HSA in 2027
If you contribute through payroll, divide your target by the number of paychecks left in the year. Using the full 2027 HSA contribution limits with no employer money:
| Coverage | Annual limit | 26 paychecks (biweekly) | 24 paychecks (semimonthly) |
| Self-only | $4,500 | $173.08 | $187.50 |
| Family | $9,000 | $346.15 | $375.00 |
| Family, age 55+ | $10,000 | $384.62 | $416.67 |
Subtract any employer contribution first. If you start HDHP coverage partway through the year, your limit is generally prorated by month unless you qualify under the last-month rule described below.
You don’t have to spend HSA money in the year you contribute it. Many people pay smaller medical bills out of pocket and leave the HSA invested for retirement, as long as they keep receipts for qualified expenses.
New HSA Rules: More Plans Now Qualify
The One Big Beautiful Bill Act expanded who can contribute to an HSA. According to the IRS:
- Bronze and catastrophic plans count as HSA-compatible starting January 1, 2026, even if they don’t meet the usual HDHP rules. IRS Notice 2026-05 says these plans don’t have to be purchased through an Exchange to qualify.
- Direct primary care (DPC) arrangements no longer disqualify you from contributing, and you can use HSA funds tax-free to pay periodic DPC fees, starting in 2026. For 2027, fees can’t exceed $150 a month for an individual or $300 a month for an arrangement covering more than one person (Rev. Proc. 2026-24).
- Telehealth before the deductible is now permanently allowed without losing HSA eligibility, for plan years beginning on or after January 1, 2025.
This matters most for people who buy coverage on their own. Self-employed people and early retirees choosing a Marketplace bronze plan during 2027 open enrollment may now be able to open and fund an HSA. If you’re self-employed, HSA contributions are deducted on your return but don’t reduce self-employment tax. See our guide to 2026 self-employment taxes for how that tax works.
How to Choose an HSA Plan During Open Enrollment
An HDHP with an HSA isn’t right for everyone. Compare the plans side by side:
- Add premiums plus expected out-of-pocket costs for each option. HDHP premiums are usually lower, but you’ll pay more before coverage kicks in.
- Count your employer’s HSA contribution as a reduction in your cost.
- Count the tax savings on your own contributions.
- Check the worst case. Could you cover the out-of-pocket maximum ($8,700 self-only or $17,400 family in 2027) if you had a major medical event?
HSAs tend to work well for people who are generally healthy, have savings to cover the deductible, or want a long-term, tax-free fund for future medical costs. People with ongoing high medical costs may come out ahead with a lower-deductible plan.
Rules That Trip People Up
Medicare ends HSA contributions
Your HSA contribution limit drops to zero starting with the first month you’re enrolled in Medicare (IRS Publication 969). If you’re working past 65 and plan to sign up for Medicare later, Medicare.gov advises that you and your employer stop HSA contributions 6 months before you retire to avoid a tax penalty (Medicare.gov). You can still spend the money you’ve already saved. Our article on retiree taxes in 2026 covers how Medicare and retirement income fit together.
The last-month rule
If you’re HSA-eligible on December 1, you can contribute the full annual amount for that year. But you must stay eligible through December 31 of the following year, or the extra contributions become taxable and face a 10% additional tax (IRS Publication 969).
Non-medical withdrawals
Money you take out for non-medical expenses is taxable and generally subject to an additional 20% tax. The 20% tax doesn’t apply after age 65, if you become disabled, or at death (IRS Publication 969).
Excess contributions
Contributions over the limit face a 6% excise tax each year they stay in the account. You can avoid it by withdrawing the excess plus earnings by your tax return due date, including extensions.
Frequently Asked Questions
What is the HSA limit for 2027?
For 2027, you can contribute up to $4,500 with self-only HDHP coverage or $9,000 with family coverage. People 55 and older can contribute an extra $1,000.
What is the minimum deductible for an HDHP in 2027?
An HDHP must have a deductible of at least $1,750 for self-only coverage or $3,500 for family coverage in 2027.
Can I have an HSA with a bronze plan?
Yes. Starting in 2026, bronze and catastrophic plans are treated as HSA-compatible, even when bought outside an Exchange, according to IRS guidance.
Do employer contributions count toward the HSA limit?
Yes. The 2027 HSA contribution limits include both your contributions and your employer’s.
Can I contribute to an HSA after I turn 65?
Only if you aren’t enrolled in Medicare. Once Medicare coverage begins, your contribution limit is zero for those months.
Need Help Deciding?
Choosing between health plans is partly a tax decision. If you’d like Aric to look at your options and estimate the after-tax cost of each, book a free consultation.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
