Employers are waiting for the IRS to announce the 2026 limits for health savings account (HSA) contributions any day now, but, if projections hold true, HR leaders can expect to see HSA limits rise next year.
Mercer analysts predict that the HSA contribution limit will rise $100 for self-coverage — from $4,300 in 2025 to $4,400 in 2026 — and $200 for family coverage, from $8,550 in 2025 to $8,750 in 2026. Mercer’s 2026 predictions were determined using the Internal Revenue Code’s cost-of-living adjustment methods, the U.S. Bureau of Labor Statistics’ published Chained Consumer Price Index for All Urban Consumers (C-CPI-U) values through January 2025, and Mercer’s projected C-CPI-U values for February and March.
The consulting firm also projected that limits for high-deductible health plans and contribution amounts for excepted-benefit health reimbursement arrangements will increase from 2025 levels.
Those predictions were made before the latest consumer price index (CPI) numbers showed more stabilizing inflation. The CPI for March decreased 0.1% on a monthly basis and rose 2.4% for the 12 months ending in March — news that could push the HSA limit rise slightly lower. However, many economists expect inflation to rise again due to impacts from President Donald Trump’s tariffs.
The announcement from the IRS about HSA limits usually comes in May. Last year, the IRS made its annual announcement on May 9. The limit rose $150 from 2024 to 2025, while the annual limit for family coverage rose $150. The 2025 jump in the contribution limits was significantly less than the roughly 7% increase seen from 2023 to 2024 — largely a result of stabilizing inflation.
The ability to save more money in these tax-advantaged accounts is good news for employees. Overall, employees are contributing more to their HSAs, with data finding that HSA balances were up significantly at the end of 2024 compared to year-end 2023. The average HSA account balance at the end of 2024 was $5,000, up year-over-year from $4,400, according to analysis from Bank of America. In Q4 2024, on average, Generation X employees contributed the most to their HSAs — nearly $2,000 — while Millennials were most likely to have saved their HSA funds.
According to SHRM’s 2024 Employee Benefits Survey, 60% of employers offer an HSA.
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