Federal Health & Welfare Updates

IRS Releases 2026 HSA and EBHRA Limits

May 06, 2025

On May 1, 2025, the IRS released Revenue Procedure 2025-19, which provides the 2026 inflation-adjusted limits for HSAs and HSA-qualifying HDHPs. According to the revenue procedure, the 2026 annual HSA contribution limit will increase to $4,400 for individuals with self-only HDHP coverage (up $100 from 2025) and to $8,750 for individuals with anything other than self-only HDHP coverage (family or self + one, self + child(ren), or self + spouse/domestic partner coverage), an increase of $200 from 2025. 

For qualified HDHPs, the 2026 minimum statutory deductibles will be $1,700 for self-only coverage (up $50 from 2025) and $3,400 for individuals with anything other than self-only coverage (an increase of $100 from 2025). The 2026 maximum out-of-pocket limits will increase to $8,500 for self-only coverage (up $200 from 2025) and up to $17,000 for anything other than self-only coverage (up $400 from 2025). For reference, out-of-pocket limits on expenses include deductibles, copayments, and coinsurance, but not premiums. Additionally, the catch-up contribution maximum remains $1,000 for individuals aged 55 years or older (this is a fixed amount not subject to inflation). 

The maximum amount that may be made newly available for plan years beginning in 2026 for excepted benefit health reimbursement arrangements (EBHRAs) is $2,200 (up $50 from 2025). 

Employer Takeaway 

The 2026 limits may impact employer benefit strategies, particularly for employers coupling HSAs with HDHPs. Employers should ensure that employer HSA contributions and employer-sponsored qualified HDHPs are designed to comply with the 2026 limits. 

For further information regarding employee benefits annual limits, PPI Clients can download a copy of our publication Employee Benefits Annual Limits, from the Client Help Center.

Revenue Procedure 2025-19

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

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