HSA Contribution Limits 2027: How to Set Your Payroll Election

The IRS has published the 2027 HSA limits in Revenue Procedure 2026-24, which appeared in Internal Revenue Bulletin 2026-25 on June 15, 2026. If your open enrollment form asks for a per-paycheck amount, the annual cap is only the starting point. Employer contributions, your age, your pay schedule and your months of eligibility all change the number you should enter.

This guide turns the 2027 HSA contribution limits into a payroll election. It does not repeat the plan decision (see our HDHP vs PPO comparison) or the basics of how an account works (see the HSA explainer).

HSA contribution limits 2027 compared with 2026

For 2027 the limit is $4,500 for self-only high-deductible health plan (HDHP) coverage and $9,000 for family coverage. The 2026 figures come from Revenue Procedure 2025-19. That puts the HSA max contribution for 2027 $100 higher for self-only coverage and $250 higher for family coverage.

Item	2026	2027	Change
HSA limit, self-only	$4,400	$4,500	+$100
HSA limit, family	$8,750	$9,000	+$250
HDHP minimum deductible, self-only	$1,700	$1,750	+$50
HDHP minimum deductible, family	$3,400	$3,500	+$100
HDHP out-of-pocket maximum, self-only	$8,500	$8,700	+$200
HDHP out-of-pocket maximum, family	$17,000	$17,400	+$400

The out-of-pocket maximum counts deductibles, copays and other amounts you pay, but not premiums.

How employer contributions reduce your room

The annual limit applies to contributions from all sources combined. Under IRS Publication 969, employer contributions use up part of your cap. Salary reduction contributions made through a cafeteria plan also count as employer contributions, so a payroll deferral and a company seed deposit draw from the same pool.

Here is the self-only example. If your employer puts in $1,000, your room is $4,500 minus $1,000, or $3,500. Check your benefits guide for any employer deposit before you do the math, because an election that ignores it can push you over the cap.

The age 55 catch-up contribution

The HSA catch-up contribution is an extra $1,000 for eligible individuals age 55 or older. It is set in 26 U.S.C. 223 at a fixed $1,000 and is not indexed for inflation. It has been $1,000 since 2009, so it does not change for 2027.

A self-only participant age 55 or older with a $1,000 employer contribution has room of $4,500 plus $1,000 minus $1,000, which is $4,500.

Turning the annual cap into a per-paycheck election

Divide the amount you want to contribute by the number of paychecks in the year. Your pay frequency matters here, because 26 biweekly checks and 24 semimonthly checks produce different amounts.

Pay frequency	Paychecks per year	Per check for $4,500 (self-only)	Per check for $9,000 (family)
Monthly	12	$375.00	$750.00
Semimonthly	24	$187.50	$375.00
Biweekly	26	$173.07	$346.15

Weekly pay (52 checks) works out to $86.5385 per check for $4,500, so round down to $86.53.

The rounding trap

Biweekly pay is where people overshoot. Dividing $4,500 by 26 gives $173.0769. If you round up to $173.08, the year totals $4,500.08, which is 8 cents over the limit. Entering $173.07 gives $4,499.82 and stays under. For family coverage, $346.15 per check totals $8,999.90. Always round down.

Election with employer money

Using the self-only case with a $1,000 employer contribution and $3,500 of room: biweekly, $3,500 divided by 26 is $134.6154, so elect $134.61 per check for $3,499.86 over the year. Rounding up to $134.62 would reach $3,500.12 and exceed the limit. Semimonthly, elect $145.83 per check for $3,499.92.

You can test how a given election changes your net pay in our payroll calculator.

Why payroll contributions beat direct contributions

Salary reduction contributions through a cafeteria plan are not included in your income and are generally not subject to employment taxes. They appear on Form W-2, box 12, code W. Contributions you make directly are deductible on your return, but they come from pay that already had Social Security and Medicare tax withheld, so you do not recover that 7.65%. The same distinction shows up across pre-tax and post-tax deductions.

Take $4,500 contributed by someone in the 22% federal bracket with a 5% state income tax. Through payroll it avoids 22% plus 7.65% plus 5%, which is 34.65%, or $1,559.25 of tax. Contributed directly and deducted on the return, it saves 22% plus 5%, which is 27%, or $1,215. The difference is $344.25, which is the Social Security and Medicare tax. State treatment of HSAs varies, so check your own state’s rules.

Contributions for a tax year can still be made up to the filing deadline, generally April 15 of the following year, but those are direct contributions without the payroll tax advantage. If you are weighing this account against a use-it-or-lose-it account, see FSA vs HSA.

Partial-year eligibility, the last-month rule and Medicare

If you are not eligible for the whole year and the last-month rule does not apply, the limit is prorated by month. Someone with self-only HDHP coverage for only the first 6 months of 2027, who then moves to a plan that is not HSA eligible, can contribute $4,500 times 6 divided by 12, or $2,250.

The last-month rule in 26 U.S.C. 223 offers an exception. If you are HSA eligible in the last month of the tax year, which is December for most people, you are treated as eligible for the whole year when calculating the limit. The condition is a testing period: you must stay eligible through December of the next year. If you do not, the extra contributions are added to your income plus a 10% additional tax, with exceptions for death or disability.

Medicare is a separate hard stop. Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. If you will enroll during 2027, your election needs to stop before that month, or be prorated in advance.

Excess contributions face a 6% excise tax each year they remain, unless you withdraw them with earnings by the tax return due date, including extensions.

Married couples with family coverage

When a married couple has family coverage, the family limit of $9,000 is split between spouses, equally unless they agree otherwise. If both are 55 or older, each spouse must make their own $1,000 catch-up contribution to their own HSA.

Wider eligibility: exchange plans and direct primary care

For months beginning after December 31, 2025, 26 U.S.C. 223 treats bronze and catastrophic plans available as individual coverage through an ACA Exchange as HDHPs. For the same months, a direct primary care service arrangement, which provides primary care for a fixed periodic fee within the fee cap, does not disqualify you from HSA eligibility. HSA money can pay the fee.

For 2027, Revenue Procedure 2026-24 caps direct primary care fees at $150 per month for an individual, or $300 per month if the arrangement covers more than one individual.

Common questions