On October 9, 2025, the Internal Revenue Service announced the tax year 2026 annual inflation adjustments for over 60 tax provisions, including several benefit plan limits. The following are inflation-adjusted limits for health and fringe benefit plans for 2025 and 2026. Some inflation-adjusted amounts were released earlier this year, while others were released last week. The 2026 contribution limits for tax-qualified retirement plans are expected to be announced soon.
| 2025 | 2026 | |
| Health Savings Accounts – HDHP Limits | ||
| HDHP Minimum Annual Deductible – Self Only | $1,650 | $1,700 |
| HDHP Minimum Annual Deductible – Family | $3,300 | $3,400 |
| HDHP Out-of-Pocket Maximum – Self Only | $8,300 | $8,500 |
| HDHP Out-of-Pocket Maximum – Family | $16,600 | $17,000 |
| Health Savings Accounts – Maximum Contribution Limits | ||
| Self Only | $4,300 | $4,400 |
| Family | $8,550 | $8,750 |
| Catch-Up Contributions (age 55 by the end of the year) | $1,000 | $1,000 |
| ACA Out-of-Pocket Maximum | ||
| Self Only | $9,200 | $10,600 |
| Embedded Individual Max within Family Coverage | $9,200 | $10,600 |
| Family | $18,400 | $21,200 |
| Transportation Fringe Benefits – Monthly Limits | ||
| Parking | $325 | $340 |
| Transit Passes and Vanpooling (combined) | $325 | $340 |
| FSA Limits | ||
| Health FSA Contribution Limit | $3,300 | $3,400 |
| FSA Carryover Limit | $660 | $680 |
| Dependent Care FSA Contribution Limit | ||
| *Special income tax situations may require a lower limit. | $5,000 | $7,500 |
| Employer Adoption Assistance Exclusion | ||
| Maximum Gross Income Exclusion | $17,280 | $17,670 |
| Maximum AGI Limit (after which exclusion phases out) | $259,190 | $265,080 |
| Employer Education Assistance | ||
| Annual Maximum | $5,250 | $5,250 |
| Qualified Small Employer HRA – Maximum Annual Contribution Limits | ||
| All Coverage (other than family) | $6,350 | $6,450 |
| Family Coverage | $12,800 | $13,100 |
| Excepted Benefit HRA Maximum | ||
| Maximum | $2,150 | $2,200 |
| Failure to File Correct Information Returns (§6721) – Per Return Penalty | ||
| Failure to File | $340 | $340 |
| Corrected w/in 30 Days | $60 | $60 |
| Corrected before August 1 of Applicable Year | $130 | $130 |
| Failure to Furnish Correct Payee Statements (§6722) – Per Return Penalty | ||
| Failure to Furnish | $340 | $340 |
| Corrected w/in 30 Days | $60 | $60 |
| Corrected before August 1 of Applicable Year | $130 | $130 |
| Social Security Wage Base | ||
| *2026 is estimated – not yet released | $176,100 | $183,600* |
Nixon Peabody’s Employee Benefits & ERISA lawyers are well-equipped to help employers and plan administrators navigate inflation-related tax adjustments and stay compliant with evolving employee benefits regulations. For more information on this content, please contact your Nixon Peabody attorney or the author of this alert.