HSA vs FSA 2027 Contribution Comparison Calculator

HSA vs FSA in 2027: contribution limits and the triple tax advantage

Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are both tax-advantaged accounts for medical expenses, but they're structured very differently. HSA requires enrollment in a high-deductible health plan (HDHP), funds roll over indefinitely, you own the account for life, balances can be invested, and qualified withdrawals are tax-free at any age. FSA has no health plan requirement, funds are use-it-or-lose-it by year-end (with limited carryover), you don't own the account, and balances cannot be invested.

Projected 2027 contribution limits: HSA self-only $4,500, HSA family $9,000, FSA $3,400. The HSA age 55+ catch-up stays at $1,000. The HSA's "triple tax advantage" — pre-tax contributions, tax-free growth, tax-free qualified withdrawals — makes it the most tax-favored account available, better than 401(k), IRA, or Roth IRA for those who can use it.

How to use this HSA vs FSA calculator

Select your HDHP coverage type (self-only or family — only matters for HSA limits), enter your age (55+ unlocks the $1,000 HSA catch-up), pick your federal marginal tax bracket, enter your state income tax rate, your planned contribution amount, and whether the contribution will be made via payroll deduction (which saves the 7.65% FICA tax) or direct deposit (no FICA savings).

The calculator shows total tax savings under HSA (federal + state + FICA where applicable) versus FSA (always payroll-deducted, so always saves FICA). It also displays the 2027 contribution limit applicable to you, plus a side-by-side feature comparison of rollover treatment, investability, account ownership, and qualifying expenses.

Which account is right for you?

Choose HSA if: you have access to an HDHP at work or via the marketplace, you can afford the higher HDHP deductible, you want a long-term retirement health-care fund, you're financially able to pay current medical expenses out of pocket (letting HSA invested balances grow), or you're a high earner who has maxed other tax-advantaged accounts. The HSA is the only account that combines pre-tax in, tax-free growth, and tax-free out.

Choose FSA if: you can't or don't want an HDHP, you have predictable annual medical expenses you'd pay anyway (orthodontia, scheduled procedures, regular dental work, vision), or your employer doesn't offer HDHP+HSA. FSA is "less powerful but still useful" — the FICA savings alone on a maxed $3,400 contribution is ~$260/year, and federal+state income tax savings can push total tax savings above $1,000.

Have both: if your employer offers a Limited Purpose FSA (LPFSA) alongside HDHP+HSA, you can max BOTH — using LPFSA for predictable dental and vision (preserving HSA for retirement) and HSA for everything else. This is the most powerful combination available to most W-2 employees.

Source: irs.gov Revenue Procedure HSA limits; healthcare.gov HDHP definition; IRS Publication 969. Updated May 2026.