2026 Health FSA Inflation Adjustments Released

The IRS issued Revenue Procedure 2025-32, which establishes various 2026 tax-related limits that have been adjusted for inflation.

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Published: 10.14.2025

The Internal Revenue Service issued Revenue Procedure 2025-32, which establishes various 2026 tax-related limits that have been adjusted for inflation. The table below identifies updates to the 2026 health and fringe benefit plans addressed in this notice. The health flexible spending account (health FSA) employee contribution limit, carryover limit, and maximum qualified small employer health reimbursement arrangement (QSEHRA) employer contribution are annual amounts that apply once a plan starts/renews in 2026.* The adoption assistance program limit is an annual maximum that applies for the 2026 calendar year, while the transportation benefit is a monthly threshold that also applies for the 2026 calendar year.
 

Benefit	2025	2026
Maximum Employee Contribution to a Health FSA	$3,300	$3,400
Health FSA Carryover Limit	$660	$680
Adoption Assistance Program	$17,280	$17,670
Maximum Annual Employer Contribution to a QSEHRA	$6,350 (self-only coverage) $12,800 (family coverage)	$6,450 (self-only coverage) $13,100 (family coverage)
Maximum Monthly Benefit for Qualified Transit Passes, Van Pool Services, and Qualified Parking	$325	$340

_{*Employers with non-calendar year QSEHRAs are permitted to either establish a prorated maximum employer contribution using the two calendar-year limits their plan bridges or adopt the calendar year limit in place at the time their plan renews. Practically speaking, however, many employers will not have enough advance access to the following year’s limit to calculate a prorated limit and will instead adopt the limit in place when the plan renews for the entirety of that plan year.}