Health savings account limits are reset for inflation every year, and the announcement passes with very little attention because the headline number moves by small amounts. For 2027 the self-only contribution limit rises by $100.
The headline number is also the least useful of the six figures the IRS actually sets. The others decide whether you are allowed to contribute at all, and one of them disqualifies plans that look like obvious candidates.
All of this applies to the United States. The figures below come from Revenue Procedure 2026-24 (opens in a new tab), published by the IRS under section 223 of the Internal Revenue Code.
The 2027 figures in full
| What the IRS sets | Self-only | Family |
|---|---|---|
| Annual HSA contribution limit | $4,500 | $9,000 |
| Minimum annual deductible for an eligible plan | $1,750 | $3,500 |
| Maximum annual out-of-pocket for an eligible plan | $8,700 | $17,400 |
Separately, for plan years beginning in 2027, the maximum that may be newly made available for an excepted benefit health reimbursement arrangement is $2,250.
Three numbers, two of which are tests you must pass before the first one means anything.
What changed from 2026
| Figure | 2026 | 2027 | Change |
|---|---|---|---|
| Contribution limit, self-only | $4,400 | $4,500 | +$100 |
| Contribution limit, family | $8,750 | $9,000 | +$250 |
| Minimum deductible, self-only | $1,700 | $1,750 | +$50 |
| Minimum deductible, family | $3,400 | $3,500 | +$100 |
| Out-of-pocket maximum, self-only | $8,500 | $8,700 | +$200 |
| Out-of-pocket maximum, family | $17,000 | $17,400 | +$400 |
| Excepted benefit HRA | $2,200 | $2,250 | +$50 |
The 2026 column comes from Revenue Procedure 2025-19 (opens in a new tab). None of these movements is a policy decision: section 223 requires the amounts to be adjusted for inflation, and this is the adjustment. The detail of what the 2026 year introduced, including two genuine rule changes, is in the guide to the 2026 HSA limits.
Eligibility is a two-sided test, and people only check one side
This is the part worth slowing down for, because the common failure is not contributing too much. It is contributing while holding a plan that does not qualify.
The statute defines a high deductible health plan by both a floor and a ceiling:
- the annual deductible must be not less than $1,750 self-only or $3,500 family, and
- annual out-of-pocket expenses must not exceed $8,700 self-only or $17,400 family.
Both tests are set in Revenue Procedure 2026-24 (opens in a new tab), section 3.
Almost everyone checks the deductible. Very few check the out-of-pocket ceiling, because "high deductible" sounds like a floor-only test, and because a plan with a large deductible feels obviously qualifying.
The out-of-pocket figure counts deductibles, copayments and other amounts, but explicitly not premiums. So a plan with an affordable monthly premium and brutal cost sharing can fail the test precisely because the cost sharing is brutal.
There is a third way to fail the test that has nothing to do with the plan itself: a general-purpose health FSA is disqualifying coverage, whether it is yours or your spouse's, because it can reimburse the same expenses before the deductible is met. A limited-purpose FSA restricted to dental and vision does not have that effect. If you are electing both at open enrollment, what the 2027 FSA limits are and when the IRS sets them covers the election side and the carryover rules that decide how long a general-purpose balance keeps blocking contributions.
The ceiling that catches marketplace plans
Here is where the two systems collide, and it is the most useful thing on this page.
ACA-compliant plans have their own out-of-pocket ceiling, set separately by CMS. For 2027 that ceiling is $12,000 for self-only coverage, as set out in the guide to how a health plan actually charges you.
The HSA rules cap a qualifying plan at $8,700.
Those are not the same number and they are not close. A marketplace plan can be entirely lawful, sold on the exchange, and sitting at an out-of-pocket maximum of $11,000, and that plan cannot be HSA-eligible, because it blows through the section 223 ceiling (opens in a new tab) by a wide margin.
The practical consequence: do not infer HSA eligibility from the plan being a high-deductible marketplace product. Insurers generally label qualifying plans as HSA-eligible. If the plan documents do not say so, assume it is not, and ask the insurer in writing before you open an account and start contributing.
The contribution limit is a household ceiling, not a personal allowance
Two things routinely cost people money here.
Employer contributions count against your limit. If your employer puts $1,200 into your account for 2027 and you hold self-only coverage, your remaining room is $3,300, not $4,500. Employer contributions are not a bonus on top of the ceiling; they consume it, a point IRS Publication 969 (opens in a new tab) makes explicitly.
The $1,000 catch-up contribution for account holders aged 55 or over is unchanged for 2027. It is fixed in statute rather than inflation-adjusted, so it has not moved in years and will not.
The family limit is one limit, not one each. A married couple both covered by a family high deductible health plan share the $9,000, however it is split between their accounts. Treating it as $9,000 apiece produces an excess contribution, which carries its own tax consequences.
If the ceiling is binding for you and you are also funding retirement accounts, the order in which you fill them matters, and the comparison worth making is set out in the 2026 401(k) and IRA contribution limits.
Direct primary care no longer breaks eligibility
One structural change that arrived for 2026 continues into 2027 and is still not widely understood.
Under section 223(c)(1)(E), added by section 71308 of Public Law 119-21 in July 2025, a direct primary care service arrangement is not treated as a disqualifying health plan, provided the aggregate monthly fees do not exceed $150 for an individual, or $300 where the arrangement covers more than one person. Those are the 2027 figures, unchanged from the amounts in the statute, and they are inflation-adjusted for months beginning after 31 December 2026.
Before this change, paying a monthly membership to a direct primary care practice could disqualify you from contributing at all. It no longer does, within those limits.
Medicare ends contributions, not the account
Worth stating plainly because the mistake is expensive and common: enrolling in Medicare stops HSA contributions. IRS Publication 969 (opens in a new tab) sets out the rule and the month it starts applying.
It stops contributions only. Money already in the account keeps its tax treatment indefinitely and can still be withdrawn tax-free for qualified medical expenses, including many costs Medicare does not cover. What those costs look like in practice is covered in the 2026 Medicare costs guide.
There is also no required minimum distribution on an HSA, which sets it apart from the rest of your retirement accounts: your own IRA and 401(k) start forcing withdrawals at 73, and an account you inherit runs on a ten-year clock instead. What an HSA does badly is inheritance by anyone other than a spouse. Publication 969 is blunt about it: the account stops being an HSA on the date of death, and its full value becomes taxable income to the beneficiary in that year.
Five things to check before January
- Does your 2027 plan say "HSA-eligible" in its own documents? Not "high deductible". The specific label.
- What is the plan's out-of-pocket maximum? If it is above $8,700 self-only or $17,400 family, the plan does not qualify, whatever its deductible.
- What will your employer contribute? Subtract it before deciding what to pay in yourself.
- If you are married, who is covered by what? The family limit is shared, not doubled.
- Are you approaching 65? Medicare enrolment ends contributions, and the timing is worth planning rather than discovering.
This article sets out the inflation-adjusted figures the IRS published for 2027 and what each one governs. It is general information for a United States audience, not tax, financial or insurance advice. Whether a specific plan qualifies depends on its own terms, and whether an HSA suits you depends on your circumstances. Confirm eligibility with your insurer and take advice from a qualified tax professional before acting.
Sources
- IRS Revenue Procedure 2026-24: 2027 inflation adjusted amounts for Health Savings Accounts (opens in a new tab)
- IRS Revenue Procedure 2025-19: 2026 inflation adjusted amounts for Health Savings Accounts (opens in a new tab)
- IRS Internal Revenue Bulletin 2026-25 (opens in a new tab)
- IRS Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans (opens in a new tab)
- IRS: Affordable Care Act and health savings accounts guidance (opens in a new tab)
This article is general information for a United States audience and reflects the figures published by the IRS in Revenue Procedure 2026-24 at the date of review. It is not tax, financial, insurance or legal advice. HSA eligibility depends on the specific terms of your health plan, your coverage status and your enrolment in other programmes including Medicare. Contribution limits, eligibility thresholds and the rules governing excess contributions can change. Confirm your own position with your insurer and a qualified tax professional before contributing. Last reviewed 15 October 2026.
