A Health Savings Account (HSA) is the most tax-advantaged account in the US tax code: contributions go in pre-tax, growth is tax-free, and withdrawals for qualified medical expenses come out tax-free. It is the only account that offers a triple tax break — and after age 65 you can spend the money on anything, paying only ordinary income tax (no penalty), which makes it a stealth retirement account as well.
This HSA calculator estimates two things at once: the annual tax savings you get from contributing, and the future balance you could build if you invest the money and let it compound. Adjust the sliders and every figure updates instantly, so you can see exactly how a $1,000 raise in contribution, a higher tax bracket, or a longer horizon changes your bottom line.
How to Use
- Choose your Coverage Type — self-only or family. This sets the IRS contribution limit for the year you pick.
- Pick the Tax Year — 2025 or 2026. The IRS raises the limits most years; using the correct year matters if you are making a catch-up or mid-year election.
- Enter your Annual Contribution — the dollar amount you plan to put into the HSA this year. The calculator automatically caps it at the legal maximum for your coverage and age.
- Set your Current Age. Once you turn 55, the IRS lets you add an extra $1,000 per year as a catch-up contribution, and the calculator includes that automatically.
- Type your Federal Marginal Rate — your top federal income-tax bracket for 2025 (10%, 12%, 22%, 24%, 32%, 35%, or 37%).
- Add your State Marginal Rate. If you live in one of the nine states with no income tax, leave this at 0. Otherwise, enter your top state bracket.
- Set your Expected Annual Return. A diversified low-cost index portfolio has historically returned roughly 7% after inflation assumptions; 5%–8% is a sensible planning range.
- Choose Years to Contribute — how many more years until retirement. The longer the horizon, the more powerful the compounding math becomes.
The result card then shows your IRS annual limit, any catch-up amount you are eligible for, the maximum you are allowed to put in, your annual tax savings in dollars, the total contributions over your working years, the projected tax-free balance at retirement, and the portion of that balance that came from investment growth rather than your own paycheck.
The 2025 and 2026 IRS Contribution Limits
Per IRS Publication 969, the annual maximum you can contribute to an HSA depends on the deductible of your High-Deductible Health Plan (HDHP) and your coverage tier:
- 2025 self-only coverage: $4,300
- 2025 family coverage: $8,550
- 2026 self-only coverage: $4,400
- 2026 family coverage: $8,750
- Catch-up contribution (age 55 or older, either tier): an additional $1,000 per year
If you are 55 or older and have family coverage in 2025, your ceiling is therefore $8,550 + $1,000 = $9,550. If you turn 65 and start drawing Social Security, you can no longer contribute to an HSA while enrolled in Medicare Part A, but every dollar already in the account stays invested and keeps growing tax-free.
The tax savings themselves come from two layers. First, your contribution reduces your taxable income dollar-for-dollar at the federal level. Second, most states that levy an income tax also exclude HSA contributions from state tax (California and New Jersey are the notable exceptions). If you are in the 22% federal bracket and a 5% state bracket, every $1,000 you contribute saves you $270 in tax this year alone.
Growth Projection Math
The projected balance uses the standard future-value-of-an-annuity formula:
FV = PMT × [((1 + r)ⁿ − 1) / r]
Where PMT is your annual contribution, r is your expected annual return, and n is the number of years you contribute. This assumes you contribute at the end of each year and reinvest all dividends. A 40-year-old putting in $4,300 per year for 25 years at 7% does not end with $107,500 — the compounding pushes the balance to roughly $272,000, of which about $164,000 is pure investment growth. That growth has never been taxed and never will be, as long as withdrawals go toward qualified medical expenses.
If your expected return is 0%, the formula divides by zero, so the engine simply sums your contributions across years — the projected balance equals total contributions with no growth.
Examples
Example 1 — A 40-year-old professional in Texas. She has self-only HDHP coverage in 2025, contributes the full $4,300, is in the 22% federal bracket, pays no state income tax, expects a 7% return, and will contribute for 25 years. Her annual tax savings are $946 ($4,300 × 22%). After 25 years her projected HSA balance is about $272,000, with roughly $164,000 of that from tax-free growth. Because Texas has no state income tax, the entire savings is federal only.
Example 2 — A young family in New York. They have family HDHP coverage in 2026, contribute the full $8,750, are in the 24% federal bracket plus a 6% New York state rate (30% combined), expect a 6% return, and will contribute for 35 years. Their annual tax savings are $2,625. Over 35 years they put in $306,250 of their own money, but the projected balance grows to roughly $975,000 — nearly $669,000 of which is tax-free investment growth.
Example 3 — A high-earner near retirement. A 55-year-old with family coverage in 2025 contributes the maximum $9,550 (base $8,550 plus the $1,000 catch-up), is in the 32% federal bracket plus a 5% state rate, and plans to contribute for 10 more years. Their annual tax savings are about $3,534 — recovering nearly 37% of their contribution in the first year alone. Even a short 10-year horizon at 7% turns $95,500 of contributions into roughly $132,000.
Example 4 — The seven-figure HSA. A 30-year-old with family coverage in 2026 contributes the full $8,750 every year for 35 years at a 7% return. Despite only depositing $306,250 of their own money, the projected balance crosses $1,200,000. This is why financial planners increasingly treat the HSA as a "stealth IRA": after age 65, non-medical withdrawals are taxed as ordinary income only, with no penalty, so it can sit alongside a 401(k) and Roth IRA in retirement.
FAQ
How much can I contribute to an HSA in 2025?
For 2025, the IRS limit is $4,300 for self-only coverage and $8,550 for family coverage. If you are 55 or older, you can add another $1,000 as a catch-up contribution, bringing the maximum to $5,300 (self-only) or $9,550 (family). These numbers are set by IRS Publication 969 and are indexed for inflation each year.
What are the 2026 HSA contribution limits?
For 2026, the IRS raised the limits to $4,400 for self-only coverage and $8,750 for family coverage. The catch-up contribution for account holders age 55 or older remains $1,000. Use the Tax Year selector in this calculator to switch between 2025 and 2026 figures.
How much does an HSA save me in taxes?
Your annual tax savings equal your contribution multiplied by your combined federal and state marginal tax rate. If you contribute $4,300 while in the 22% federal bracket and a 5% state bracket, you save 27% × $4,300 = $1,161 this year. Contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free — a triple tax break no other account offers.
Can I use an HSA for retirement?
Yes. After age 65, you can withdraw HSA money for any purpose — not just medical expenses — and you will only pay ordinary income tax, with no 20% penalty. If you use the money for qualified medical expenses, withdrawals remain 100% tax-free. This makes the HSA a powerful stealth retirement account on top of your 401(k) and IRA.
What is the catch-up contribution and who qualifies?
If you are 55 or older by the end of the tax year, the IRS allows you to contribute an extra $1,000 per year beyond the standard limit. There is no income cap. Both spouses age 55+ can each contribute a $1,000 catch-up to their own HSA accounts, even on a family plan.
What counts as a qualified medical expense?
Qualified expenses include deductibles, copayments, prescriptions, dental work, vision care, hearing aids, and many over-the-counter items (bandages, sunscreen, menstrual care products) under the SECURE 2.0 Act. Keep receipts — you can reimburse yourself tax-free decades later, as long as the expense was incurred after you opened the HSA.
Do I lose my HSA money if I change jobs?
No. The HSA is yours personally, not your employer's. The money stays invested and continues to grow tax-free regardless of whether you switch jobs, retire, or switch to a non-HDHP plan. You simply cannot make new contributions once you are no longer enrolled in a qualifying HDHP (or after enrolling in Medicare).
Disclaimer
This HSA calculator is provided for informational purposes only and is not medical advice, nor does it constitute financial, tax, or legal advice. Contribution limits, tax brackets, and investment assumptions are based on IRS Publication 969 and publicly available 2025/2026 figures; actual amounts depend on your filing status, state of residence, HDHP eligibility, and individual circumstances. Projected balances use a constant-rate annuity model and are not guarantees of future returns. Always consult a qualified tax professional or financial advisor before making HSA contribution or investment decisions.