2027 HSA Limits Rise to $4,500 and $9,000: How to Turn Open Enrollment Into a Raise

Open enrollment season is here, and one of the quietest ways to give yourself a raise in 2027 is sitting in your benefits menu. The IRS has set the 2027 limits for health savings accounts (HSAs), and they’re going up again. If your employer offers a high-deductible health plan, an HSA can put more money in your pocket than a typical cost-of-living bump, without asking your boss for anything.

The new 2027 HSA numbers

The IRS published the 2027 figures in Revenue Procedure 2026-24. Here’s what changes:

• Self-only coverage: you can put in up to $4,500 in 2027, up from $4,400 in 2026.
• Family coverage: the limit rises to $9,000, up from $8,750.
• Catch-up for 55 and older: still an extra $1,000. That amount is set by law and doesn’t adjust for inflation, as Fidelity notes.
• What counts as a high-deductible plan: a deductible of at least $1,750 for self-only coverage or $3,500 for family coverage, with out-of-pocket costs capped at $8,700 and $17,400.

One thing to keep in mind: the limit covers everything that goes into the account. Your own paycheck deductions and any money your employer adds both count toward the same cap. If your company kicks in $1,000, a single person can add only $3,500 more on their own.

What about FSAs?

If you use a health flexible spending account (FSA) instead, you’ll have to wait a little longer. As of early October, the IRS hadn’t released the 2027 health FSA limit or carryover amount, according to a benefits planning guide from PDX Benefits. The 2026 figures are $3,400 for contributions and $680 for carryover, if your plan allows it. Don’t assume those will stay the same; check your enrollment materials for the final number. The dependent care FSA limit, which helps with child care costs, stays at $7,500 per household for 2027.

Why an HSA works like a raise

When you put money in an HSA through payroll, it comes out before federal income tax. In most cases it also skips Social Security and Medicare taxes, which take 7.65% of most paychecks. Most states don’t tax it either, though a couple do. That means every dollar you send to an HSA is a dollar the government doesn’t touch on the way in.

The account then gets three tax breaks in a row. The money goes in untaxed, it can be invested and grow untaxed, and it comes out untaxed when you spend it on qualified medical costs. No other common account gives you all three.

Here’s a simple example. These numbers are just an illustration, not tax advice. Say you’re single, in the 22% federal bracket, and you put the full $4,500 in through payroll. You’d skip about $990 in federal income tax and about $344 in payroll taxes, so roughly $1,334 stays in your pocket. If you earn $60,000, that’s like getting a raise of more than 2%. And if your employer also adds money to the account, that’s extra pay you only get if you sign up.

If you’re wondering how a raise and your tax bracket work together, our guide to 2027 tax brackets and your raise walks through it.

Is a high-deductible plan right for you?

An HSA only works with a qualifying high-deductible plan, and that plan isn’t the best fit for everyone. Before you switch during open enrollment, think through a few questions:

• How much care do you usually use? If you’re generally healthy and see a doctor a few times a year, lower premiums plus HSA savings often come out ahead.
• Could you cover the deductible? If a surprise bill would wipe out your savings, a plan with a lower deductible may be safer, even if it costs more each month.
• What’s the premium difference? Compare what you’d save in premiums with the higher deductible. Add your employer’s HSA contribution to the savings side.
• Do you have ongoing prescriptions or a planned procedure? Run the numbers both ways. Some people with predictable costs still come out ahead, but not always.

Health costs keep rising, and our article on how rising health costs can eat your raise covers more ways to protect your take-home pay this enrollment season.

How to get the most out of your HSA in 2027

• Grab the full employer contribution. Some companies add money only if you contribute a certain amount. Read the fine print so you don’t leave free money behind.
• Use payroll, not direct deposits. Putting money in yourself from your bank account still gets the income tax break when you file, but you usually lose the payroll tax savings. Going through your paycheck is better.
• Raise your contribution when your pay goes up. If you’re getting a raise in January, bump your HSA amount at the same time. You won’t miss money you never got used to seeing.
• Invest what you don’t need. Many HSAs let you invest the balance once it passes a minimum. Money you don’t spend this year can grow for decades.
• Save your receipts. You can pay medical bills out of pocket now and reimburse yourself from the HSA years later, as long as the expense came after you opened the account. Keep good records.
• Remember it’s yours. Unlike an FSA, HSA money doesn’t disappear at the end of the year, and it stays with you if you change jobs.

Pair it with your 401(k)

An HSA and a 401(k) work well together. A common approach is to put enough in your 401(k) to get the full employer match, then fund your HSA, then go back and add more to your 401(k). The 2027 401(k) limits are rising too, and our breakdown of 2027 401(k) limits explains how to fit both into your budget.

The bottom line

A raise from your boss isn’t the only way to boost your take-home pay. The new 2027 HSA limits of $4,500 for individuals and $9,000 for families give you a little more room to shelter money from taxes. If a high-deductible plan fits your health needs, signing up during open enrollment and contributing through payroll can be worth more than a typical yearly raise. Check your enrollment deadline, compare the plans, and make your choice before the window closes. After that, you usually have to wait a full year unless you have a qualifying life event.