WASHINGTON, D.C. — The Internal Revenue Service released the 2027 contribution limits for health savings accounts (HSAs), increasing the self-only limit to $4,500 and the family coverage limit to $9,000. The new limits represent an increase from $4,400 and $8,750, respectively, in 2026.

HSAs offer three tax advantages: contributions are tax-deductible, investment earnings grow tax-free, and withdrawals used for qualified medical expenses are not taxed. To be eligible to contribute, individuals must be enrolled in a high-deductible health plan.

More than 59 million Americans held an HSA as of December 31, 2024, according to a survey of the top 20 HSA providers conducted by Devenir and the American Bankers Association's Health Savings Account Council. In 2025, about 31% of companies offering employee health coverage included HSA-eligible high-deductible plans, and many individuals also obtained such plans through the Affordable Care Act marketplace.

Investment options for HSA funds are increasingly available. A 2025 survey of approximately 600 U.S. employers by the Plan Sponsor Council of America found that two-thirds offered investing options for HSA contributions. However, only 20% of HSA holders invested their assets in 2024, up slightly from 18% in 2023.

"The reality is that many people need to access their funds for current expenses," Hattie Greenan, director of research and communications for the Plan Sponsor Council of America, previously said. She noted that immediate medical costs often prevent account holders from treating HSAs as long-term savings vehicles.

Nicole Rapfogel, a senior policy analyst for the Center on Budget and Policy Priorities, criticized the tax structure of HSAs in a February blog post. "HSAs provide the biggest tax breaks to people with high incomes who can afford to contribute to the account and leave the money there to accrue tax-free investment earnings over time," she wrote.

The IRS adjusts HSA contribution limits annually based on inflation, as required by law. The 2027 limits reflect such an adjustment.