2026 FSA Contribution Limits: Health, Dependent Care, and Limited Purpose FSAs Explained

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2026 FSA Contribution Limits at a Glance (Comparison Table)

Here's the side-by-side. All figures are per IRS Rev. Proc. 2025-32 and IRS Publication 15-B (2026) unless noted.

| FSA Type | 2025 Limit | 2026 Limit | Change | 2026 Carryover Max | |---|---|---|---|---| | Health Care FSA | $3,300 | $3,400 | +$100 | $680 | | Limited Purpose FSA | $3,300 | $3,400 | +$100 | $680 | | Dependent Care FSA (single / MFJ) | $5,000 | $7,500 | +$2,500 | None | | Dependent Care FSA (married filing separately) | $2,500 | $3,750 | +$1,250 | None |

A few things worth anchoring here:

• Per-employee vs. per-household: Health Care FSA and Limited Purpose FSA limits are per employee. Each working spouse can elect up to $3,400 through their own employer's plan, independently. The Dependent Care FSA is a household cap. Two spouses at two different employers share one combined ceiling.
• Carryover applies only to Health Care and Limited Purpose FSAs. Dependent Care FSAs have no carryover provision. Unspent funds are forfeited under IRS Pub 969 use-it-or-lose-it rules.
• Employer plans can be more restrictive. The IRS figures are ceilings, not floors. Your employer can legally cap elections below the IRS maximum. Check your Summary Plan Description before assuming you can contribute the full $3,400.

Why You're Seeing $3,300 and $3,400 for the Same FSA — What's Actually Going On?

Simple version: $3,300 is the 2025 limit. $3,400 is the 2026 limit. Both numbers are correct for their respective years.

The IRS set $3,400 as the 2026 Health Care FSA ceiling in Rev. Proc. 2025-32. If your employer's benefits materials haven't been updated, or a third-party site is caching last year's figures, you'll see $3,300 presented as current. It isn't.

There's a second wrinkle. The One Big Beautiful Bill Act, signed into law in mid-2025, included provisions affecting certain benefit account limits for 2026 plan years. Specifically, the legislation drove the meaningful jump in the Dependent Care FSA household limit — from $5,000 to $7,500. That's why the increase looks so large compared to the incremental $100 move in the Health Care FSA. The Dependent Care FSA limit had been frozen at $5,000 for years with no inflation adjustment. The Act changed that.

For Health Care FSAs, the $3,400 figure reflects standard IRS inflation indexing under the revenue procedure process. No direct legislative override there.

What does this mean practically? Some employers issued amended enrollment opportunities or updated their systems mid-cycle if the legislative change landed after open enrollment closed. Whether yours did depends on their plan administrator and timing. If you're unsure which limit governs your election, ask HR for the actual plan document — not a summary sheet, the plan document itself.

Use $3,400 for Health Care FSA elections in 2026 plan years, unless your employer's plan caps it lower.

Limited Purpose FSA vs. General Purpose FSA: Limits, Rules, and Who Needs Each

A General Purpose Health Care FSA covers the full range of qualified medical expenses — doctor visits, prescriptions, dental, vision, and more — as defined under IRS Section 213(d). See IRS Pub 502 for the full expense list.

A Limited Purpose FSA covers dental and vision only. Same pre-tax dollars, narrower spending lane.

Why would anyone choose the narrower version? HSA compatibility. If you're enrolled in an HSA-eligible High Deductible Health Plan and want to contribute to an HSA, you cannot also hold a General Purpose Health Care FSA. The IRS treats a general FSA as "other coverage" that disqualifies HSA contributions, per IRS Pub 969. A Limited Purpose FSA, restricted to dental and vision, is explicitly allowed alongside an HSA.

Limits are identical for both types. In 2026, that's $3,400. Carryover works the same way too — up to $680 rolls into the next plan year if your employer's plan allows it.

Decision rule:

• On an HDHP and contributing to an HSA? Use a Limited Purpose FSA for dental and vision costs. Protect your HSA eligibility.
• Not on an HDHP, or not funding an HSA? A General Purpose FSA gives you more flexibility across all medical spending categories.

Honestly, the HDHP/HSA compatibility piece trips up more people than any other FSA rule. If you're not sure which plan type you have, look at your insurance card or Summary Plan Description for the phrase "High Deductible Health Plan" before you elect anything.

Dependent Care FSA: Family vs. Individual Limits and the Married-Filing-Separately Trap

The Dependent Care FSA got the biggest update for 2026. The household maximum for single filers and married couples filing jointly jumped to $7,500, per IRS Publication 15-B (2026). That's a $2,500 increase from the long-standing $5,000 cap.

Married filing separately is a different story. That limit is $3,750 — exactly half the joint-filing cap. If you and your spouse file separate returns, each of you can contribute no more than $3,750, and your combined household contributions still cannot exceed the household ceiling. The mechanics of that interaction catch people off guard, especially when both spouses enroll in separate Dependent Care FSAs through different employers.

Then there's the earned income rule. Your Dependent Care FSA contribution is further capped at the lower-earning spouse's annual earned income. So if one spouse earns $4,000 in a year, the household Dependent Care FSA benefit is capped at $4,000, regardless of what the IRS maximum says. Full details are in IRS Publication 503.

Eligible dependents under a Dependent Care FSA:

• Children under age 13 whom you claim as dependents
• A spouse or dependent of any age who is physically or mentally incapable of self-care and lives with you for more than half the year

The age-13 cutoff is a hard line. The year your child turns 13, eligibility ends on their birthday — not at year-end. If a child is turning 13 in 2026, you may need to reduce your election accordingly.

The disability exception is real and genuinely underused. If you're caring for an adult dependent who can't care for themselves, those costs can qualify.

Real Scenario: How a Dual-Income Family Should Allocate 2026 FSA Contributions

Meet Jordan and Casey. Two kids in full-time daycare. Jordan is on an HDHP through their employer and contributes to an HSA. Casey is on a PPO through a separate employer.

Health Care FSA / Limited Purpose FSA: Jordan cannot open a General Purpose Health Care FSA — it would disqualify their HSA. Instead, Jordan enrolls in a Limited Purpose FSA and elects up to $3,400 to cover dental cleanings, eyeglasses, and contact lenses throughout the year. Casey, on the PPO with no HSA, opens a General Purpose Health Care FSA and also elects up to $3,400. That's potentially $6,800 in combined pre-tax health spending — through two separate employer plans, each hitting the per-employee ceiling.

For reference on how Jordan's HSA fits alongside this: the 2026 HSA contribution limits apply separately and are governed by a different revenue procedure than the FSA limits. Check your plan documents or the IRS for those figures.

Dependent Care FSA: Daycare for two kids is expensive. The household maximum is $7,500 for 2026. Jordan and Casey can split that contribution across their two employer plans however they like — say, $5,000 through Casey's plan and $2,500 through Jordan's. But their combined total cannot exceed $7,500. They cannot each contribute $7,500 independently; IRS Publication 503 is explicit that the household cap is shared.

Carryover planning: Jordan had $200 left in the Limited Purpose FSA from 2025. That carries into 2026, well within the $680 maximum. For 2026, Jordan elects $3,400 more. The carryover balance does not reduce the $3,400 election — more on that in the FAQ below.

Tax savings: Contributions come out pre-tax, reducing federal income tax, Social Security tax, and Medicare tax. The actual dollar savings depend on your marginal rate and state tax rules. Run the numbers with a tax advisor or your employer's FSA calculator. But for a household maxing both a Health Care FSA and a Dependent Care FSA, the savings are real. That's the whole point.

Year-Over-Year Changes from 2025 to 2026: What Actually Increased and What Didn't

Clean summary of the moves, all sourced from IRS Rev. Proc. 2025-32 and IRS Publication 15-B (2026):

• Health Care FSA contribution limit: $3,300 → $3,400 (+$100, roughly +3%)
• Limited Purpose FSA contribution limit: $3,300 → $3,400 (+$100)
• Health Care FSA carryover maximum: $660 → $680 (+$20)
• Dependent Care FSA (single / MFJ): $5,000 → $7,500 (+$2,500)
• Dependent Care FSA (married filing separately): $2,500 → $3,750 (+$1,250)

The Health Care FSA and Limited Purpose FSA increases follow standard IRS inflation indexing. The IRS adjusts these annually via revenue procedure, rounding to the nearest $50 increment — which is why you see $100 jumps rather than precise CPI-matching figures. Future increases aren't guaranteed. If inflation moderates, the ceiling could hold flat in a given year.

The Dependent Care FSA increase is a different animal entirely. The limit had been frozen at $5,000 for a long time. The One Big Beautiful Bill Act changed that for 2026. Whether it will be indexed going forward is a question for future IRS guidance; don't assume $7,500 automatically rises each year the way the Health Care FSA does.

Knowing the limits is only half the job. Knowing what's actually eligible to spend them on matters just as much. Our complete guide to FSA-eligible items covers hundreds of product categories if you're planning how to use your balance.

FAQ: Quick Answers to the Most Confusing 2026 FSA Limit Questions

Q: Can I contribute to both a Health Care FSA and a Dependent Care FSA in the same year? Yes. These are separate accounts covering different expense categories. Many employees elect both through the same employer. The limits are independent — electing into one doesn't reduce the ceiling on the other.

Q: Does my employer have to offer the full IRS maximum, or can they set a lower cap? They can set a lower cap. The $3,400 Health Care FSA figure and the $7,500 Dependent Care FSA figure are IRS ceilings, not mandates. Some employers cap elections at lower amounts for plan design or cost reasons. Always verify the limit in your employer's plan documents.

Q: What happens to money I contributed before a mid-year limit change takes effect? Generally, contributions made under the rules in effect at the time of your election stand. If a legislative change raises a limit mid-year, whether you can increase your election depends on whether your employer amends their plan and opens a special enrollment window. No employer is automatically required to do so. When in doubt, ask HR.

Q: If I change jobs mid-year, can I contribute to a new FSA at my new employer? It depends on your new employer's plan rules and timing. FSA elections are generally tied to plan years and qualifying events. A new employer may allow you to enroll as a new hire. What you can contribute is constrained by the annual limit across both plans combined. The rules vary by plan, so check with your new employer's benefits administrator directly.

Q: Does the carryover amount count against next year's contribution limit? No. The up-to-$680 carryover does not reduce your ability to elect up to $3,400 in the following plan year. Your carryover balance and your annual election are additive. This is one of the most common misconceptions about FSA carryover rules, per IRS Pub 969. You can enter 2026 with $680 carried over and still elect the full $3,400 — giving you up to $4,080 available to spend.

For anything not covered here, IRS Pub 502 covers eligible expenses and IRS Pub 503 covers Dependent Care FSA rules in full. If you're trying to figure out whether a specific product qualifies — say, contact lenses or a breast pump — we have individual guides for dozens of product categories.