IRS Releases 2027 HSA and HDHP Limits
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The IRS has released 2027 HSA and HDHP limits, giving employers and employees an early look at key contribution and plan design changes for the upcoming year. HSA contribution limits and HDHP thresholds will increase in 2027, making now a good time for employers to begin evaluating benefits strategies, employee communications, and enrollment planning.
With 2027 approaching fast, the IRS has begun to release some of next year’s indexing adjustment and benefit limits for health and welfare plans.
One of the most-watched IRS adjustments each year is the required contribution percentage used to determine whether employer-sponsored health coverage is considered affordable under the Affordable Care Act (ACA).
The IRS has increased the affordability baseline from 9.96% in 2026 to 10.22% in 2027. As a reminder, Applicable Large Employers (ALEs) subject to the ACA employer mandate have to offer affordable, minimum value coverage to their ACA full-time employees. For 2026, this means that a job-based health plan’s employee-only coverage needs to cost 9.96% or less of the employee’s household income to be considered affordable.
The cost is the amount the employee pays for the insurance, not the plan’s total premium. Failure to meet ACA affordability can result in tax penalties for the employer. For 2027, the “A” penalty is $3,780 and the “B” penalty is $5,670. As a reminder, these penalties are calculated monthly. The monthly penalty is equal to the annual penalty listed above divided by 12. The IRS only counts full-time employees calculating penalties.
2027 HSA and HDHP Limits at a Glance
The IRS recently released Rev. Proc. 2026-24 , which contains the 2027 limits for HSAs and high deductible health plans (HDHPs). Qualified individuals with self-only coverage will be able to contribute $4,500, a $100 increase from 2026. Qualified individuals with family coverage may contribute up to $9,000, a $250 increase from 2026. As always, individuals age 55 and older may make an additional $1,000 catch-up contribution.
To be eligible, individuals must be enrolled in an HDHP with a minimum deductible of $1,750 for self-only coverage and $3,500 for family coverage. The maximum out-of-pocket expense limit will increase to $8,700 for self-only coverage and $17,400 for family coverage.
There is a lot more information plan sponsors and participants will need to properly plan for 2027, including the ACA affordability limit and the FSA limit. Check back often, as the table below will be updated as new 2027 limits are released.
| HSA Contribution Limit – Single | HSA Contribution Limit – Family | HSA Contribution Limit – 55+ Catch-Up Contribution | Minimum HDHP Deductible - Single | Minimum HDHP Deductible – Family | Plan Out-of-Pocket Maximum for HSA Eligibility – Single | Plan Out-of-Pocket Maximum for HSA Eligibility - Family | Plan Out-of-Pocket Maximums for traditional plans – Single | Plan Out-of-Pocket Maximums for traditional plans – Family | |
| 2026 | $4,400 | $8,750 | $1,000 | $1,700 | $3,400 | $8,500 | $17,000 | $10,600 | $21,200 |
| 2027 | $4,500 | $9,000 | $1,000 | $1,770 | $3,500 | $8,700 | $17,400 | $12,000 | $24,000 |
Are your 2027 health plan and HSA strategies ready? Connect with a OneDigital benefits advisor to evaluate upcoming limits, employee communications, and plan design considerations ahead of open enrollment.