2026 Health FSA & Qualified Transportation Limits

In Revenue Procedure 2025-32, the IRS sets forth a variety of 2026 adjusted tax limits. Among other things, the notice indicates that employee contribution limits toward health flexible spending arrangements (health FSAs) and qualified transportation fringe benefits will increase for 2026. The limit on annual employee contributions toward health FSAs for 2026 plan years is $3,400 (increased from $3,300 in 2025), with the ability to carryover up to $680 (increased from $660 in 2025). The limit on monthly contributions toward qualified transportation and parking benefits for 2026 is $340 (increased from $325 in 2025).

The full text of Rev. Proc. 2025-32, including 2026 amounts and limitations for other taxes, may be found here – 26 CFR 601.602: Tax forms and instructions.

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