HSA Calculator — Triple-Tax Benefit
Enter your income, tax bracket, and planned HSA contribution. The calculator shows your combined federal, FICA, and state tax savings — plus how your invested balance grows tax-free over time.
Your Information
Your Tax Savings (Triple-Tax Benefit)
Year-by-Year Investment Growth
Assumes you contribute the full amount each year and invest at the stated return. Tax-free growth is the third leg of the HSA triple-tax advantage.
| Year | Annual Contribution | Annual Tax Saved | Balance (End of Year) | Cumulative Tax Saved |
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How This Is Calculated
All math runs in your browser. No data is sent to a server. Limits verified against IRS Rev. Proc. 2024-25 (2025) and IRS Rev. Proc. 2025-19 (2026), as of June 12, 2026.
federal_saved = contribution × federal_bracket HSA contributions reduce your federal taxable income dollar-for-dollar. The savings equal your marginal rate times the contribution amount.
fica_saved = contribution × 0.0765 When contributions go through employer payroll (Section 125 cafeteria plan), they also avoid the 7.65% employee FICA tax (6.2% Social Security + 1.45% Medicare). Self-employed individuals contribute post-FICA, so their FICA saving is $0.
state_saved = contribution × state_rate Most states follow federal treatment and allow the HSA deduction. CA, NJ, and AL are exceptions — this calculator flags those states and sets their state savings to $0.
FV = C × [((1 + r)^n − 1) / r] × (1 + r) Where C = annual contribution, r = annual return rate, n = years invested. The (1 + r) multiplier reflects beginning-of-year contributions. Growth compounds tax-free inside the HSA.
discount = total_annual_tax_saved / contribution The percentage of every HSA dollar that comes back as tax savings. A 22% bracket + 7.65% FICA + 5% state = ~34.65% effective discount on qualified medical expenses.
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Frequently Asked Questions
An HSA gives you three separate tax breaks: (1) contributions are tax-deductible, reducing your taxable income; (2) money grows tax-free inside the account; and (3) withdrawals are tax-free when used for qualified medical expenses. No other account type offers all three benefits simultaneously.
For 2025, the IRS limit is $4,300 for self-only HDHP coverage and $8,550 for family coverage (Rev. Proc. 2024-25). For 2026, the limits increase to $4,400 (self-only) and $8,750 (family) per Rev. Proc. 2025-19. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution.
No. CA, NJ, and AL do not conform to federal HSA tax treatment. Residents of those states pay state income tax on HSA contributions, so your actual state tax savings may be $0. Set your state tax rate to 0% in the calculator to reflect this, or enter your rate to see only the federal and FICA savings.
Yes — but only when contributions are made through an employer payroll deduction under a Section 125 cafeteria plan. In that case, contributions bypass the 7.65% employee FICA tax (6.2% Social Security + 1.45% Medicare). Self-employed individuals making direct contributions to their HSA do not get the FICA exemption.
Yes. Most HSA providers let you invest your balance in mutual funds or ETFs once the balance exceeds a minimum threshold (commonly $500–$1,000). Invested assets grow tax-free and can be withdrawn tax-free for qualified medical expenses at any age, or penalty-free for any purpose after age 65.
For 2026, an HDHP must have a minimum deductible of $1,700 (self-only) or $3,400 (family), per IRS Rev. Proc. 2025-19. You must be enrolled in a qualifying HDHP to contribute to an HSA.