Estimate FSA tax savings — federal, FICA, and state — for healthcare, dependent-care, and limited-purpose FSAs, with current IRS contribution limits.
Pick a typical scenario, then adjust the amounts, income, and filing status to match yours.
Annual contribution limit (2026): $3,400.00
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A Flexible Spending Account (FSA) lets you set aside money from your paycheck before taxes to pay for eligible healthcare or dependent-care costs. Because the money is pre-tax, every dollar you contribute avoids federal income tax, the 7.65% FICA (Social Security + Medicare) tax, and usually state income tax — so your real savings equal your contribution times your combined tax rate. This calculator estimates that saving across all three FSA types, uses your income and filing status to find your marginal federal rate, applies the current IRS contribution limits, and shows what your eligible expenses really cost after the tax break.
An FSA is an employer-sponsored account funded with pre-tax salary. There are three types: a healthcare (general-purpose) FSA for medical, dental, and vision costs; a dependent-care FSA for daycare, preschool, and elder care; and a limited-purpose FSA for dental and vision only (used alongside an HSA). For 2026, the healthcare and limited-purpose FSA limit is $3,400 (with up to $680 of carryover), and the dependent-care FSA limit is $7,500 per household ($3,750 if married filing separately). In 2025 the limits were $3,300 and $5,000. FSAs are generally 'use it or lose it,' so contribute close to what you expect to spend.
FSA Tax Savings Formula
Decide your FSA election during your employer's benefits enrollment window.
Plan pre-tax dollars for copays, prescriptions, dental work, and vision expenses.
Estimate savings on daycare, preschool, after-school care, or elder care for a dependent.
Save on dental and vision while keeping your HSA eligibility intact.
Factor the value of pre-tax benefits into total compensation when weighing offers.
See the tax impact of an FSA before choosing between an FSA and an HSA.
Get the actual dollar savings broken into federal income tax, FICA, and state tax — not a vague 'you could save' estimate.
Enter your expected expenses and the calculator suggests a contribution, capped automatically at the IRS limit.
Switch between healthcare, dependent-care, and limited-purpose FSAs — each with the correct current contribution limit.
Your income and filing status set your marginal federal rate, so the federal portion of the savings is accurate, not a flat guess.
The 2026 limits are applied automatically, and the calculator flags you when an entry exceeds the cap.
See how much comes out of each paycheck at your pay frequency, so the contribution fits your budget.
An FSA is an employer-sponsored account you fund with pre-tax salary to pay for eligible healthcare or dependent-care expenses. Because contributions are taken out before taxes, they lower your taxable income — saving you federal income tax, FICA (7.65%), and usually state income tax.
Your savings equal your contribution multiplied by your combined tax rate (marginal federal rate + 7.65% FICA + state rate). For example, contributing $3,300 at a 22% federal bracket plus 7.65% FICA and a 5% state tax saves about $1,143 — roughly 34.65% of what you set aside.
Contribute close to what you realistically expect to spend on eligible expenses, because most FSAs are 'use it or lose it.' Use the 'expected expenses' mode in this calculator — it suggests a contribution and caps it at the IRS limit so you don't over-elect.
For 2026, the healthcare and limited-purpose FSA limit is $3,400 per employee, with up to $680 of carryover if your plan allows it. The dependent-care FSA limit is $7,500 per household, or $3,750 if married filing separately. (In 2025 the limits were $3,300 and $5,000.) Employers may set lower limits than the IRS maximum.
A healthcare (general-purpose) FSA covers medical, dental, and vision costs. A dependent-care FSA covers childcare, preschool, and elder care so you can work. A limited-purpose FSA covers only dental and vision and is designed to be paired with an HSA, since a general-purpose FSA would otherwise make you HSA-ineligible.
An HSA requires a high-deductible health plan, but the money rolls over every year, is yours to keep, and can be invested. An FSA has no health-plan requirement and is available to most employees, but it is largely use-it-or-lose-it and tied to your employer. Many people with an HSA also use a limited-purpose FSA for dental and vision. Use our HSA calculator to compare.
Healthcare FSAs are generally 'use it or lose it' at year-end, though your plan may allow up to $680 (2026) of carryover or a short grace period — not both. Dependent-care FSAs do not allow carryover. That's why estimating your expenses before electing a contribution matters.
Usually no. FSA elections are fixed for the plan year unless you have a qualifying life event — such as marriage, divorce, a birth or adoption, or a change in employment or childcare cost. Otherwise your election stays put until the next open enrollment.