IRS Releases 2026 HSA and HRA Limits: What HR Needs to Know

The IRS has released the 2026 inflation-adjusted limits for Health Savings Accounts (HSAs), High Deductible Health Plans (HDHPs), and excepted benefit Health Reimbursement Arrangements (HRAs). These updates are important for HR and benefits professionals planning ahead for open enrollment, plan design, and employee communications.

A Quick Refresher on HSAs and HDHPs

HSAs are tax-advantaged savings accounts designed to help individuals with high-deductible health plans cover medical expenses. Contributions to an HSA are tax-deductible, funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free. To be eligible for an HSA, an individual must be enrolled in an HDHP, which meets specific IRS requirements for minimum deductibles and maximum out-of-pocket limits.

Each year, the IRS adjusts these limits to reflect inflation.

2026 HSA and HDHP Limits

For 2026, the new contribution limits and plan thresholds are as follows:

• The HSA contribution limit for individuals with self-only HDHP coverage will increase to $4,400, and the limit for those with family HDHP coverage will rise to $8,750.
• To qualify as an HDHP in 2026, the minimum deductible must be at least $1,700 for self-only coverage and $3,400 for family coverage.
• The maximum out-of-pocket expenses allowed for HDHPs will be $8,500 for self-only coverage and $17,000 for family coverage.

These figures represent modest increases from 2025, continuing the trend of gradual inflation-based adjustments.

2026 Limit for Excepted Benefit HRAs

The IRS also adjusted the maximum amount that can be newly made available for excepted benefit HRAs in 2026. The new limit is $2,200, up from $2,100 in 2025. These HRAs are limited-purpose arrangements that can be used to reimburse vision, dental, or other excepted benefits.

What HR Should Do Next

These changes take effect for calendar year 2026 (or for plan years beginning in 2026, in the case of HRAs). Now is a good time to begin incorporating these figures into your planning models, employee communication drafts, and benefits platform configurations. If your organization offers consumer-directed health plans or HRAs, these numbers will shape contribution strategies and eligibility messaging in the year ahead.

Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.

MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).

This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.