# How much will my FSA save me?

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.

- Page: https://www.acalculator.org/finance/fsa-calculator
- JSON spec: https://www.acalculator.org/finance/fsa-calculator.json
- Version: f9b30845befe

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| type | FSA type | A health FSA pays medical costs; a dependent care FSA pays child or adult day care. |
| mfs | Married filing separately | The dependent care limit is halved for married people who file separate returns. |
| amount | Your contribution | What you elect to put in for the 2026 plan year. Leave it empty to use the limit. |
| exp | Expected eligible expenses | What you expect to spend on eligible costs in the plan year. Leave it empty if you will spend it all. |
| carry | Plan’s unused-money rule | Many health FSAs let you carry up to $680 into the next year; others are use it or lose it. |
| fed | Federal tax bracket | Your top federal income tax rate, such as 12%, 22% or 24%. |
| state | State income tax rate | Your state income tax rate (0 if your state has none). |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| taxSaved | Tax saved | Your contribution times your federal and state rates plus 7.65% Social Security and Medicare tax. |
| contribution | Your contribution | The amount you entered, or the limit when you left it empty. |
| limit | Your 2026 limit | $3,400 for a health FSA; $7,500 for dependent care, $3,750 if married filing separately. |
| lost | Money you could lose | Contribution minus expected expenses, minus any carryover the plan allows. |
| net | Net saving | Tax saved minus the money you could lose. |

## 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.

## Worked examples

1. type = health, carry = carryover, fed = 22%, state = 5% gives amount = $3,400.00, taxSaved = $1,178.10, lost = $0.00, net = $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.
2. type = health, amount = $3,000.00, exp = $2,000.00, carry = carryover, fed = 12%, state = 0% gives taxSaved = $589.50, lost = $320.00, net = $269.50.
3. type = health, amount = $2,500.00, exp = $2,300.00, carry = none, fed = 24%, state = 6% gives taxSaved = $941.25, lost = $200.00, net = $741.25.
4. type = dependent, mfs = yes, fed = 22%, state = 5% gives limit = $3,750.00, amount = $3,750.00, taxSaved = $1,299.38. Source: IRS Publication 15-B (2026) (https://www.irs.gov/publications/p15b): $3,750 if married filing separately.
5. type = dependent, mfs = no, amount = $7,500.00, exp = $6,000.00, fed = 22%, state = 0% gives limit = $7,500.00, taxSaved = $2,223.75, lost = $1,500.00, net = $723.75. Source: IRS Publication 15-B (2026): dependent care limit $7,500, no carryover.

## FAQ

### 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.

## 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)