8829 / What are the contribution limits on an HSA?

An eligible individual may deduct the aggregate amount paid in cash into an HSA during the taxable year, up to $4,300 for 2025 ($4,150 for 2024, $3,850 for 2023), for self-only coverage and $8,550 for 2025 ($8,300 for 2024, $7,750 for 2023) for family coverage). The HSA contribution limits for the 2025 taxable year and the eight previous years are provided in the table below.¹

	2017	2018	2019	2020	2021	2022	2023	2024	2025
Individual HSA Limit	$3,400	$3,450	$3,500	$3,550	$3,600	$3,650	$3,850	$4,150	$4,300
Family HSA Limit	$6,750	$6,900	$7,000	$7,100	$7,200	$7,300	$7,750	$8,300	$8,550

For years prior to 2007, the allowable contribution and deduction were limited to the lesser of the deductible under the applicable HDHP or the indexed annual limits for self-only coverage or family coverage.²

The determination of whether a plan offers self-only or family coverage is made as of the first day of the month. The limit is calculated on a monthly basis and the allowable deduction for a taxable year cannot exceed the sum of the monthly limitations. See Q 8830 for a discussion of the individual requirements for HSA eligibility. An example illustrating calculation of the HSA contribution limit is provided below.

Example: Lola has self-only coverage under an HDHP in 2025 and wishes to contribute to an HSA. She has been an eligible individual for all of 2025, so her monthly contribution for self-only coverage is calculated by dividing the 2025 annual limit ($4,300) by the twelve months in her eligibility period. Lola can contribute $358.33 per month in 2025. If Lola was only an eligible individual for the first eight months of 2025, she still must first calculate her monthly contribution based on a twelve-month year. However, her annual contribution limit is prorated to $2,866.67 (her monthly limit multiplied by the eight months of eligibility). Although the annual contribution level is determined for each month, Lola is entitled to contribute her entire annual contribution amount in a single payment, if desired.³ If Lola had been an eligible individual for the last month of 2025, she would have been treated as though she were an eligible individual for the entire year.

Individuals who attain age 55 before the close of a taxable year are eligible for an additional “catch-up” contribution amount over and above that calculated under IRC Section 223(b)(1) and IRC Section 223(b)(2). The additional contribution amount is $1,000 for 2009 and later years.⁴ In 2025, this would allow individuals age 55 and older to contribute up to $5,300 and the total contribution for a family would be $9,550.

An individual who becomes an eligible individual after the beginning of a taxable year and who is an eligible individual for the last month of the taxable year is treated as being an eligible individual for the entire taxable year. For example, a calendar-year taxpayer with self-only coverage under an HDHP who became an eligible individual for December 2025 would be able to contribute the full $4,300 to an HSA in that taxable year. If a taxpayer fails at any time during the following taxable year to be an eligible individual, the taxpayer must include in his or her gross income the aggregate amount of all HSA contributions made by the taxpayer that could not have been made under the general rule. The amount includable in gross income also is subject to a 10 percent penalty tax.⁵

For married individuals, if either spouse has family coverage, then both spouses are treated as having family coverage and the deduction limit is divided equally between them, unless they agree on a different division. If both spouses have family coverage under different plans, both spouses are treated as having only the family coverage with the lowest deductible.⁶

An HSA may be offered in conjunction with a cafeteria plan. Both a HDHP and an HSA are qualified benefits under a cafeteria plan.⁷

Employer contributions to an HSA are treated as employer-provided coverage for medical expenses to the extent that contributions do not exceed the applicable amount of allowable HSA contributions.⁸ Further, an employee is not required to include any amount in income simply because the employee may choose between employer contributions to an HSA and employer contributions to another health plan.⁹

An individual may not deduct any amount paid into an HSA. Instead, that amount is excludable from gross income under IRC Section 106(d).¹⁰

No deduction is allowed for any amount contributed to an HSA with respect to any individual for whom another taxpayer may take a deduction under IRC Section 151 (on dependency exemptions) for the taxable year.¹¹ Dependency exemptions were suspended for 2018-2025 by the 2017 tax reform legislation. See Q 8830 to Q 8834 for the rules governing employer contributions to employee HSAs. See Q 8837 for a discussion of the treatment of HSA distributions.