About the HSA Calculator
A health savings account (HSA) is the only US account with a triple tax advantage: contributions are deductible (or pre-tax through payroll), growth is tax-free, and withdrawals for qualified medical expenses are tax-free. This HSA calculator projects how your balance can grow if you invest it as a long-term retirement account, and estimates the income and payroll tax you save each year.
Enter your coverage type, contributions, any employer deposit and the medical bills you expect to pay from the account each year. The calculator applies the 2026 limits — $4,400 for self-only and $8,750 for family coverage — or the 2027 limits the IRS has already announced ($4,500 and $9,000), plus a $1,000 catch-up from age 55 (a fixed amount that is not indexed), and caps your contribution so the combined total stays within the limit.
Limits are held at the chosen year’s level for the projection, which understates future contributions because the IRS adjusts them for inflation. The payroll option adds the full 7.65% FICA saving, which assumes your wages are below the Social Security wage base ($184,500 in 2026); above it, only the 1.45% Medicare tax is saved. You need to be covered by a qualifying high-deductible health plan (HDHP) to contribute, and contributions stop once you enroll in Medicare.
With the default inputs, the hsa balance at retirement is $443,093.13. Change any value above to recalculate instantly.
How to use the hsa calculator
- 1Choose self-only or family HDHP coverage and enter your age.
- 2Enter your yearly contribution and any employer deposit.
- 3Add your current balance and the medical bills you expect to pay from the HSA each year.
- 4Set an expected return and your federal and state tax rates.
- 5Read the projected balance and the tax you save each year.
Formula and method
Each year your contribution and your employer’s are added at the start of the year, medical expenses paid from the account are subtracted, and the remaining balance grows at the expected return. Your own contribution is limited so that it plus the employer deposit does not exceed the chosen year’s limit for your coverage type, including the $1,000 catch-up once you are 55.
Tax savings multiply your own contribution by your federal and state marginal rates. Contributions made through a cafeteria plan via payroll also avoid Social Security and Medicare tax (7.65%). Employer contributions are already excluded from your pay, so they are not counted again.
- B
- HSA balance
- C
- Yearly contributions
- r
- Expected annual return
- t
- Marginal tax rates
Worked examples
Family coverage, age 40, $7,750 + $1,000 employer, $1,500 of bills
You plus your employer fill the $8,750 family limit. At 22% federal, 5% state and 7.65% FICA, your $7,750 saves about $2,685 in tax this year. Over 25 years that is $218,750 of contributions, with $37,500 of bills paid tax-free along the way.
Self-only, age 30, max out and pay bills out of pocket
Asking for $5,400 is capped at the $4,400 self-only limit until 55. Contributing through payroll saves 22% + 7.65% = $1,304.60 a year. Adding the $1,000 catch-up for the last 10 years, you contribute $164,000 in total, which grows to about $666,000 at 7%.
2027 family limit, age 56 with catch-up
For 2027 the family limit is $9,000 plus the $1,000 catch-up at 55+, so $10,000. With a $500 employer deposit your own contribution is capped at $9,500, saving 22% + 5% + 7.65% = $3,291.75 in tax. Nine years of $10,000 adds $90,000.
Frequently asked questions
What are the 2026 and 2027 HSA contribution limits?+
For 2026 the limit is $4,400 for self-only HDHP coverage and $8,750 for family coverage; for 2027 it rises to $4,500 and $9,000. People aged 55 or older can contribute an extra $1,000. Employer contributions count toward these limits.
Why is an HSA called triple tax-advantaged?+
Contributions reduce your taxable income, investment growth is not taxed, and withdrawals for qualified medical expenses are tax-free. Payroll contributions also skip FICA taxes.
Can I use my HSA for retirement?+
Yes. After age 65 you can withdraw for any reason without the 20% penalty; non-medical withdrawals are taxed as ordinary income, like a traditional IRA. Medical withdrawals, including Medicare premiums, remain tax-free.
Should I pay medical bills from my HSA or out of pocket?+
If you can afford it, paying out of pocket and leaving the HSA invested maximises tax-free growth. Keep receipts — you can reimburse yourself for past qualified expenses years later.
Can I contribute to an HSA after enrolling in Medicare?+
No. Once you are enrolled in any part of Medicare you can no longer contribute, though you can keep using the balance. Contributions are prorated in the year you enroll.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.