2027 FSA Contribution Limits Announced

November 5, 2026

Taylor Britt

Vice President of Marketing

Taylor Britt is Vice President of Marketing for The Difference Card. With over 10 years of experience in health insurance, Taylor brings expertise and insight to the complex, and often confusing world of employer-sponsored health benefits. When she's not educating the public on the power of MERPs, you can find her checking out live music in her hometown of Nashville, Tenn.

The IRS announced the new limits on November 5, 2026.

Highlights of changes coming in 2027:

FSA Contributions: Contributions to a healthcare flexible spending account have increased $100 to $3,500 – up from $3,400 in 2026.
FSA Carryover Amount: If the employer allows for carry-over, FSA participants can now carry over $700 – up $20 from $680 in 2026.
Transit & Parking Benefits: The monthly contribution limit on parking and transit benefits will increase to $350 – up from $340 in 2026.
Adoption Assistance Program: The maximum exclusion for qualified adoption expenses under the adoption assistance program is now $18,250 – up from $17,670 in 2026.
QSEHRA Reimbursement Limit: The maximum annual reimbursement will increase to $6,700 for individual coverage and $13,550 for family coverage – up from $6,450 and $13,100 in 2026.

	Taxable Years Beginning in 2027	Taxable Years Beginning in 2026
Limit on voluntary employee salary reduction contributions to a health flexible spending arrangement	$3,500	$3,400
Maximum carryover amount of unused FSA amounts	$700	$680
Monthly limit on fringe benefit exclusion for transit and parking	$350	$340
Maximum reimbursement from a qualified small employer health reimbursement arrangement	$6,700 ($13,550 for family coverage)	$6,450 ($13,100 for family coverage)
Maximum reimbursement from a qualified dependent care flexible spending account	$7,500	$7,500

The above chart does not include all the provisions under the cost-of-living adjustment.

For a full break down of the changes made by the IRS for benefit account contributions, see the full details here.

HSA Limits were previously announced earlier in the year. Find them HERE.

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Key Takeaways

The IRS announced the new limits on October 9, 2025.
FSA Contributions: Limit increased $100 to $3,400 for taxable years beginning in 2026 (up from $3,300 in 2025).
FSA Carryover Amount: If employer allows carry-over, participants can carry over $680 (up $20 from $660 in 2025).
Transit & Parking Benefits: Monthly contribution limit will increase to $340 (up from $325 in 2025).
Dependent Care FSA Limit: Annual contribution limit will increase to $7,500 (up from $5,000 in 2025).