FSA Contribution Limits 2026: Health and Dependent Care Maximums

By the Between the News desk · researched with AI tools, checked and edited by a human editor

Health FSA: $3,400 per employee (up from $3,300)Carryover limit: $680Dependent Care FSA: $7,500 per householdEmployers can't offer both a grace period and a carryoverSource: IRS Revenue Procedure 2025-32

👁Decoded

Flexible Spending Account limits rose modestly for 2026. The health care FSA limit is now $3,400 per employee, up from $3,300 — and that's a per-person limit, meaning if both spouses have access to their own employer FSA, each one can contribute up to $3,400 independently.

FSAs run on a "use it or lose it" principle stricter than HSAs, but there's a partial escape hatch: employers can allow a carryover of unused funds into the next year, and that carryover cap rose to $680 for 2026. The catch is that an employer can only offer either a carryover or a grace period to spend leftover funds — never both at the same time — so check which one your specific plan uses.

Dependent Care FSAs, which cover childcare and eldercare costs so you can work, run under separate rules entirely. The 2026 maximum is $7,500 per household, or $3,750 if you're married and filing taxes separately from your spouse — a limit set by law rather than adjusted for inflation each year like the health FSA.

Because FSA elections are typically locked in during your employer's open enrollment and can't be changed mid-year without a qualifying life event, it's worth estimating your medical and dependent care costs carefully before committing to a contribution amount for 2026.

“Employers can offer a carryover or a grace period for unused FSA money — never both at once.”