What taxes do you save with an FSA?

Unlike 401(k) contributions which only save income tax, FSA contributions are triple tax-exempt: they avoid Federal Income Tax, FICA taxes (6.2% Social Security + 1.45% Medicare), and State Income Tax (in most states).

What is the FSA carryover rollover rule?

Under IRS rules, employers may offer either a grace period of up to 2.5 months to incur new expenses or allow you to carry over up to $640 of unused funds into the next plan year.

USAUpdated for 2026Taxes

US Flexible Spending Account (FSA) Tax Savings Calculator 2026

Calculate your pre-tax income tax and FICA payroll tax savings for Healthcare FSA (up to $3,200) and Dependent Care FSA (up to $5,000) under IRS Section 125 Cafeteria plans.

Health Insurance & CHI Tiers Taxes & Duties Salaries & Monthly Wages

Calculated Result

Total Annual Tax Savings from FSA

$2,598.75

Calculator Inputs

Healthcare FSA Annual Contribution (Max $3,200)

Quick select:

Dependent Care Daycare FSA Contribution (Max $5,000)

Quick select:

Your Federal Marginal Income Tax Bracket (%)

Quick select:

Total Annual Tax Savings from FSA

$2,598.75

FICA Social Security & Medicare Saved (7.65%)

$573.75

Federal Income Tax Saved

$1,650

Total Pre-Tax FSA Contributions

$7,500

State Income Tax Reduction

$375

FSA contributions are exempt from Federal Income Tax, Social Security (6.2%), and Medicare (1.45%). Be mindful of the 'use-it-or-lose-it' rule (or $640 rollover cap).

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: Internal Revenue Code (26 U.S.C. § 125 - Cafeteria Plans, Healthcare FSA $3,200 Limit & Dependent Care FSA $5,000 Limit)Last Verified: 2026-09-04

Calculation Methodology

Combined Tax Rate = Federal Marginal Tax Rate + 7.65% FICA + State Tax Rate. Total Tax Savings = Total FSA Contributions * Combined Tax Rate. Net Out-of-Pocket Expense = Total Expenses - Total Tax Savings.

Frequently Asked Questions

The Healthcare FSA limit is $3,200 per employee per year. The Dependent Care FSA (DCFSA) limit is $5,000 per year for married couples filing jointly or single parents ($2,500 for married filing separately).

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USA

US Flexible Spending Account (FSA) Tax Savings Calculator 2026

Calculator Inputs

Calculation Methodology

Frequently Asked Questions

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