The Treasury Department and the IRS provided guidance in Notice 2026-05 on Dec. 9 on new tax benefits for health savings account participants under this summer's One Big Beautiful Bill Act.

The Treasury Department and the IRS provided guidance in Notice 2026-05 on Dec. 9 on new tax benefits for health savings account participants under this summer’s One Big Beautiful Bill Act.

These changes expand HSA eligibility, which allows more people to save and to pay for healthcare costs through tax-free HSAs.

Specifically, the Trump tax law, which was enacted last July, expands access to HSAs by making the following changes:

For calendar-year 2026 the annual contribution limit for an individual with self-only coverage under a HDHP will be $4,400, up $100 from $4,300 in 2025. Last year, the amount climbed $150 from $4,150 in 2024.

For an individual with family coverage, the amount is $8,750, an increase of $200 from $8,550 in 2025 and $450 from $8,300 in 2024.

For calendar-year 2026, a “high-deductible health plan” is defined by the IRS as a health plan with an annual deductible no less than $1,700 for self-only coverage or $3,400 for family coverage, and for which the annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) don’t exceed $8,500 for self-only coverage or $17,000 for family coverage.

The Treasury Department and IRS is asking the public to comment on all aspects of this notice by March 6, 2026.

Commentors are encouraged to use the Federal e-Rulemaking portal to submit comments online (indicate “IRS-2025-0335”). Paper submissions should be sent to: Internal Revenue Service, CC:PA:01:PR (Notice 2026-05), Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

Tags: health savings account, healthcare, healthcare costs, HSA, IRS, Taxes, Treasury Department