How much will my FSA save me?
Choose a health or dependent care FSA and enter what you plan to put in and spend. The calculator shows the tax you save and any money you could lose.
- Tax saved
- $1,178.10
A $3,400.00 FSA saves about $1,178.10 in tax; you could lose $0.00 if your expenses come in as entered.
- Your contribution
- $3,400.00
- Your 2026 limit
- $3,400.00
- Money you could lose
- $0.00
- Net saving
- $1,178.10
Tax saved: $1,178.10. A $3,400.00 FSA saves about $1,178.10 in tax; you could lose $0.00 if your expenses come in as entered.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Works out the tax a 2026 health or dependent care FSA saves, the most you can put in, and how much you could lose if your expenses come in lower.
Example with the default inputs (FSA type Health, Plan’s unused-money rule Carryover up to $680, Federal tax bracket 22%, State income tax rate 5%): A $3,400.00 FSA saves about $1,178.10 in tax; you could lose $0.00 if your expenses come in as entered.
Method: Tax saved = contribution × (federal + state + 7.65%); money lost = contribution − expenses − carryover (health FSA, up to $680), never below 0; net = tax saved − money lost.
- IRS limits for plan years starting in 2026: health FSA $3,400 and carryover $680; dependent care $7,500 ($3,750 married filing separately).
- Contributions come out of pay through a cafeteria plan, so they skip income tax and the 7.65% FICA tax.
- Wages are under the Social Security wage base.
- Grace periods, employer FSA money and the child and dependent care credit are not included.
Worked examples
Each example is checked against the calculator on every build.
- FSA type Health, Plan’s unused-money rule Carryover up to $680, Federal tax bracket 22%, State income tax rate 5% gives Your contribution $3,400.00, Tax saved $1,178.10, Money you could lose $0.00, Net saving $1,178.10.Source: IRS IR-2025-103 (https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill): 2026 health FSA limit $3,400
- FSA type Health, Your contribution $3,000.00, Expected eligible expenses $2,000.00, Plan’s unused-money rule Carryover up to $680, Federal tax bracket 12%, State income tax rate 0% gives Tax saved $589.50, Money you could lose $320.00, Net saving $269.50.
- FSA type Health, Your contribution $2,500.00, Expected eligible expenses $2,300.00, Plan’s unused-money rule Use it or lose it, Federal tax bracket 24%, State income tax rate 6% gives Tax saved $941.25, Money you could lose $200.00, Net saving $741.25.
- FSA type Dependent care, Married filing separately Yes, Federal tax bracket 22%, State income tax rate 5% gives Your 2026 limit $3,750.00, Your contribution $3,750.00, Tax saved $1,299.38.Source: IRS Publication 15-B (2026) (https://www.irs.gov/publications/p15b): $3,750 if married filing separately
- FSA type Dependent care, Married filing separately No, Your contribution $7,500.00, Expected eligible expenses $6,000.00, Federal tax bracket 22%, State income tax rate 0% gives Your 2026 limit $7,500.00, Tax saved $2,223.75, Money you could lose $1,500.00, Net saving $723.75.Source: IRS Publication 15-B (2026): dependent care limit $7,500, no carryover
How it works
Limits for plan years starting in 2026:
| FSA | Limit | Unused money |
|---|---|---|
| Health | $3,400 | carryover up to $680, if the plan allows |
| Dependent care | $7,500 | lost (no carryover) |
| Dependent care, married filing separately | $3,750 | lost (no carryover) |
Your contribution is the amount you enter, or the limit when you leave it empty. A contribution above the limit gives no answer.
Tax saved = contribution × (federal rate + state rate + 7.65) ÷ 100. The 7.65 is the employee share of Social Security (6.2%) and Medicare (1.45%) tax, which FSA salary reductions skip.
Money you could lose = the larger of 0 and (unused − carryover), where unused = the larger of 0 and (contribution − expected expenses), and carryover is $680 for a health FSA whose plan allows it, otherwise 0. Leave the expenses empty to mean you will spend it all.
Net saving = tax saved − money you could lose.
Each money result is computed from the exact typed values and rounded once, to the cent, half up.
Assumptions
- Contributions are made through a cafeteria plan at work, so they skip income tax and FICA tax.
- Your wages are under the Social Security wage base.
- Grace periods, employer FSA contributions, and the child and dependent care tax credit are not included. Money in a dependent care FSA reduces the expenses you can count for that credit.
- Federal and state rates are your top (marginal) rates.
When the data is out of date
The page uses the limits for 2026 plan years. After December 31, 2026 it keeps these limits until it is updated, and says so above the result.
Worked examples by hand
Health FSA at the limit, 22% federal, 5% state. Contribution = $3,400. Tax saved = 3,400 × (22 + 5 + 7.65) ÷ 100 = 3,400 × 0.3465 = $1,178.10. Nothing is lost.
Health FSA of $3,000, $2,000 of expenses, carryover plan, 12% federal, no state tax. Unused = 3,000 − 2,000 = $1,000; lost = 1,000 − 680 = $320. Tax saved = 3,000 × 0.1965 = $589.50. Net saving = 589.50 − 320 = $269.50.
Health FSA of $2,500, $2,300 of expenses, use it or lose it, 24% federal, 6% state. Lost = 2,500 − 2,300 = $200. Tax saved = 2,500 × 0.3765 = $941.25. Net saving = $741.25.
Dependent care FSA, married filing separately, 22% federal, 5% state. Limit = $3,750. Tax saved = 3,750 × 0.3465 = 1,299.375, so $1,299.38.
Dependent care FSA of $7,500 with $6,000 of care costs, 22% federal, no state tax. Lost = 7,500 − 6,000 = $1,500. Tax saved = 7,500 × 0.2965 = $2,223.75. Net saving = $723.75.
Other questions people ask
What is the FSA limit for 2026?
A health FSA allows up to $3,400 of salary reductions for plan years starting in 2026. A dependent care FSA allows up to $7,500 a year, or $3,750 if you are married and file separately.
How much can I carry over in a health FSA?
If your plan allows a carryover, up to $680 of unused 2026 money can move to the next plan year. Plans may offer a grace period instead, or neither, so check your plan.
How much tax does an FSA save?
FSA money comes out of your pay before income tax and the 7.65% Social Security and Medicare tax. At a 22% federal rate and 5% state rate, $3,400 saves 3,400 × 34.65% = $1,178.10.
What happens to FSA money I do not spend?
Money left after the plan year and any grace period or carryover is lost. The calculator subtracts your expected expenses and any carryover from your contribution to show that amount.
Did the dependent care FSA limit go up in 2026?
Yes. The law signed in July 2025 (P.L. 119-21) raised the dependent care limit from $5,000 to $7,500 a year starting in 2026, and from $2,500 to $3,750 for married people filing separately.