{
  "id": "fsa",
  "version": "f9b30845befe",
  "status": "published",
  "name": "FSA Calculator",
  "question": "How much will my FSA save me?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/fsa-calculator",
  "markdown": "https://www.acalculator.org/finance/fsa-calculator.md",
  "kind": "function",
  "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.",
  "assumptions": [
    "IRS limits for plan years starting in 2026: health FSA $3,400 and carryover $680; dependent care $7,500 ($3,750 married filing separately).",
    "Contributions come out of pay through a cafeteria plan, so they skip income tax and the 7.65% FICA tax.",
    "Wages are under the Social Security wage base.",
    "Grace periods, employer FSA money and the child and dependent care credit are not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "type": {
        "title": "FSA type",
        "description": "A health FSA pays medical costs; a dependent care FSA pays child or adult day care.",
        "type": "string",
        "enum": [
          "health",
          "dependent"
        ]
      },
      "mfs": {
        "title": "Married filing separately",
        "description": "The dependent care limit is halved for married people who file separate returns.",
        "type": "string",
        "enum": [
          "no",
          "yes"
        ]
      },
      "amount": {
        "title": "Your contribution",
        "description": "What you elect to put in for the 2026 plan year. Leave it empty to use the limit.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000
      },
      "exp": {
        "title": "Expected eligible expenses",
        "description": "What you expect to spend on eligible costs in the plan year. Leave it empty if you will spend it all.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000
      },
      "carry": {
        "title": "Plan’s unused-money rule",
        "description": "Many health FSAs let you carry up to $680 into the next year; others are use it or lose it.",
        "type": "string",
        "enum": [
          "carryover",
          "none"
        ]
      },
      "fed": {
        "title": "Federal tax bracket",
        "description": "Your top federal income tax rate, such as 12%, 22% or 24%.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 50
      },
      "state": {
        "title": "State income tax rate",
        "description": "Your state income tax rate (0 if your state has none).",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      }
    }
  },
  "outputs": {
    "taxSaved": {
      "label": "Tax saved",
      "description": "Your contribution times your federal and state rates plus 7.65% Social Security and Medicare tax.",
      "format": "money"
    },
    "contribution": {
      "label": "Your contribution",
      "description": "The amount you entered, or the limit when you left it empty.",
      "format": "money"
    },
    "limit": {
      "label": "Your 2026 limit",
      "description": "$3,400 for a health FSA; $7,500 for dependent care, $3,750 if married filing separately.",
      "format": "money"
    },
    "lost": {
      "label": "Money you could lose",
      "description": "Contribution minus expected expenses, minus any carryover the plan allows.",
      "format": "money"
    },
    "net": {
      "label": "Net saving",
      "description": "Tax saved minus the money you could lose.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "type": "health",
      "mfs": "no",
      "carry": "carryover",
      "fed": 22,
      "state": 5
    },
    "outputs": {
      "taxSaved": 1178.1,
      "contribution": 3400,
      "limit": 3400,
      "lost": 0,
      "net": 1178.1
    },
    "text": "A $3,400.00 FSA saves about $1,178.10 in tax; you could lose $0.00 if your expenses come in as entered."
  },
  "examples": [
    {
      "given": {
        "type": "health",
        "carry": "carryover",
        "fed": 22,
        "state": 5
      },
      "expect": {
        "amount": 3400,
        "taxSaved": 1178.1,
        "lost": 0,
        "net": 1178.1
      },
      "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; 3,400 × (22% + 5% + 7.65%) = $1,178.10 (hand calculation in content.mdx)"
    },
    {
      "given": {
        "type": "health",
        "amount": 3000,
        "exp": 2000,
        "carry": "carryover",
        "fed": 12,
        "state": 0
      },
      "expect": {
        "taxSaved": 589.5,
        "lost": 320,
        "net": 269.5
      },
      "source": "IR-2025-103: carryover up to $680; unused 3,000 − 2,000 = 1,000, minus 680 = $320 lost; 3,000 × 19.65% = $589.50"
    },
    {
      "given": {
        "type": "health",
        "amount": 2500,
        "exp": 2300,
        "carry": "none",
        "fed": 24,
        "state": 6
      },
      "expect": {
        "taxSaved": 941.25,
        "lost": 200,
        "net": 741.25
      },
      "source": "Use it or lose it: 2,500 − 2,300 = $200 lost; 2,500 × (24% + 6% + 7.65%) = $941.25 (hand calculation)"
    },
    {
      "given": {
        "type": "dependent",
        "mfs": "yes",
        "fed": 22,
        "state": 5
      },
      "expect": {
        "limit": 3750,
        "amount": 3750,
        "taxSaved": 1299.38
      },
      "source": "IRS Publication 15-B (2026) (https://www.irs.gov/publications/p15b): $3,750 if married filing separately; 3,750 × 34.65% = 1,299.375, $1,299.38 half up"
    },
    {
      "given": {
        "type": "dependent",
        "mfs": "no",
        "amount": 7500,
        "exp": 6000,
        "fed": 22,
        "state": 0
      },
      "expect": {
        "limit": 7500,
        "taxSaved": 2223.75,
        "lost": 1500,
        "net": 723.75
      },
      "source": "IRS Publication 15-B (2026): dependent care limit $7,500, no carryover; 7,500 × 29.65% = $2,223.75, minus $1,500 unused"
    }
  ],
  "sources": [
    "Internal Revenue Service, IRS releases tax inflation adjustments for tax year 2026 (IR-2025-103, October 9, 2025): https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill (retrieved 2026-10-05)",
    "Internal Revenue Service, Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits: https://www.irs.gov/publications/p15b (retrieved 2026-10-05)"
  ],
  "related": [
    "hsa",
    "payroll-tax",
    "tax-bracket"
  ],
  "changelog": []
}