HSA Calculator 2026 — Contribution Limits & Triple Tax Savings

A Health Savings Account carries a rare triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free as well. For 2026 the IRS sets the contribution ceiling at $4,300 for individual coverage and $8,550 for family coverage, with an extra $1,100 catch-up allowed once you turn 55. Projecting your tax savings and investment growth from those limits shows what the account could be worth by retirement.

Growth is modeled with a compound interest formula that takes your chosen annual contribution, an estimated annual return, and the years remaining until retirement. The federal tax savings follow from applying your marginal tax rate to your total contributions, on the simplifying assumption that your bracket holds steady across the whole stretch. State tax effects sit outside this projection and are worth weighing on their own.

Returns here are estimates, not promises, and past performance never guarantees what comes next. The account works best when contributions stay invested and withdrawals go only toward qualified expenses, because money pulled for anything else before age 65 owes income tax plus a 20% penalty. Nudging your contribution up each year helps it keep pace with rising healthcare costs.