The IRS has released the 2027 contribution limits for health savings accounts, or HSAs, which offer triple-tax benefits for investors.
Starting in 2027, the new HSA contribution limit will be $4,500 for self-only plans, up from $4,400 in 2026, based on the latest inflation adjustments.
The HSA limit for family coverage will also rise in 2027. That cap will jump to $9,000, which is up from $8,750 in 2026, according to the IRS announcement issued on Friday.
HSAs offer three tax benefits: Contributions are tax-deductible, the funds grow tax-free and you don’t pay levies on withdrawals for qualified medical expenses.
But to make contributions, you must have an eligible high-deductible health insurance plan. Roughly 31% of companies with employee health coverage offered HSA-eligible high-deductible health plans in 2025, according to KFF, a health policy research group.
Many Americans have also purchased these plans via the Affordable Care Act health insurance marketplace.
More than 59 million Americans had an HSA as of Dec. 31, 2024, according to a survey released in July from Devenir, a company that provides HSA investment solutions and research, and the American Bankers Association’s Health Savings Account Council. The survey polled the top 20 HSA providers.
Two-thirds of employers offered investing options for HSA contributions in 2024, according to the Plan Sponsor Council of America’s 2025 HSA survey released in September, which polled about 600 U.S. employers. But only 20% of HSA participants invested their assets in 2024, up from 18% in 2023.
“The reality is that many people need to access their funds for current expenses,” Hattie Greenan, director of research and communications for the Plan Sponsor Council of America, previously told CNBC.
Republicans focused on HSA expansion
Congressional Republicans have become increasingly focused on HSAs amid rising healthcare costs.
President Donald Trump’s “big beautiful bill” expanded access to HSAs by making more marketplace health plans HSA-eligible, among other changes.
Trump’s legislation did not extend the enhanced subsidies for marketplace health insurance that lowered the cost of premiums. The bigger pandemic-era tax credit expired after 2025, which has left millions of Americans uninsured.
Senate Republicans in December floated the idea of prepaid HSAs to partially offset the cost of the expiring HSA subsidies. But some policy experts have criticized HSA expansion proposals.
“HSAs provide the biggest tax breaks to people with high incomes who can afford to contribute to the account and leave the money there to accrue tax-free investment earnings over time,” Nicole Rapfogel, a senior policy analyst for the Center on Budget and Policy Priorities, wrote in a February blog post.
Meanwhile, affordability, including the cost of healthcare, has become a key issue as the November midterm elections approach and Republicans fight to maintain slim majorities in the House and Senate.