A flexible spending account lets you pay for medical or dependent care costs with pre-tax pay, but money you don't use can be forfeited. Enter how much you plan to elect, the expenses you expect, your tax bracket and your plan's carryover rule to see your tax savings, the risk of losing money and a sensible election amount.
Last updated:
Your FSA
$
$
Copays, deductibles, prescriptions, dental, glasses (or child care for a dependent care FSA).
$
2026: $3,400 health FSA; $7,500 dependent care FSA per household. Leave blank to skip the check.
$
Set by your employer, up to the IRS maximum ($680 for 2026 plan years).
Your taxes
%
Enter your values to see the result.
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How to use the FSA Calculator
Enter your yearly election and the eligible expenses you expect to have.
Check the limit (2026: $3,400 health FSA, $7,500 dependent care) and your pay frequency.
Choose your plan's rule for unused money: use it or lose it, carryover, or grace period.
Pick your federal bracket, state tax rate and whether FICA applies.
Read your net benefit, forfeiture risk, break-even spending and the table of other election amounts.
How the FSA calculation works
Tax rate saved = federal bracket + state rate + FICA (7.65%, or 1.45% above the Social Security wage base)
Example: a $2,500 election with $2,200 of expenses, 22% federal, 5% state and 7.65% FICA saves $866.25 in tax. $300 is left unspent; with a $680 carryover none of it is lost, so the net benefit is the full $866.25. Under a strict use-it-or-lose-it plan, $300 would be forfeited and the net benefit would be $566.25.
Tax saved on a $1,000 election
Federal bracket
No state tax + FICA
5% state + FICA
Break-even spending (5% state)
10%
$176.50
$226.50
$773.50
12%
$196.50
$246.50
$753.50
22%
$296.50
$346.50
$653.50
24%
$316.50
$366.50
$633.50
32%
$396.50
$446.50
$553.50
35%
$426.50
$476.50
$523.50
Break-even assumes use-it-or-lose-it with no carryover. A carryover lowers it by the carryover amount.
Tips to avoid losing FSA money
Base your election on predictable costs: refills, routine dental cleanings, contact lenses and known deductibles.
Near year end, eligible items such as first-aid supplies, sunscreen, over-the-counter medicines and menstrual products can use up a small balance.
Check your plan's claim deadline (run-out period): you often have extra time to submit receipts for expenses from the plan year.
A health FSA's full election is usually available on day one, even before you have contributed it.
On a high-deductible plan? Compare with the HSA calculator, which has no use-it-or-lose-it rule.
Frequently asked questions
How much does an FSA save in taxes?
Your election times your combined marginal tax rate. FSA money comes out of your paycheck before federal income tax, most state income taxes and the 7.65% Social Security and Medicare tax. For example, $2,500 at 22% federal, 5% state and 7.65% FICA saves $2,500 × 34.65% = $866.25.
What is the use-it-or-lose-it rule?
Money left in a health FSA at the end of the plan year is forfeited to the employer, unless the plan offers either a carryover (up to an IRS-set amount, $680 for 2026 plan years) or a grace period of up to 2½ months to spend it. A plan can offer one of those options, not both.
How much should I put in my FSA?
A good starting point is the expenses you are confident you will have: regular prescriptions, planned dental work, glasses or contacts, known deductibles and copays. If your plan has a carryover, you can add up to the carryover amount as a cushion. Because of the tax savings, you still break even even if you spend somewhat less than you elect.
What is the break-even spending amount?
It is the amount you need to spend so that the forfeited money does not exceed your tax savings: election × (1 − tax rate) − carryover. With a 34.65% rate, spending 65.35% of a $2,500 election ($1,633.75) leaves you exactly even with no FSA.
What are the 2026 FSA limits?
For 2026 the IRS limit for a health FSA is $3,400 per employee, with a maximum carryover of $680. The dependent care FSA limit rose to $7,500 per household ($3,750 if married filing separately) starting in 2026. Your employer may set lower limits.
Can I have both an FSA and an HSA?
Not a general-purpose health FSA. If you contribute to an HSA, you can only have a limited-purpose FSA (dental and vision) or a post-deductible FSA. A dependent care FSA is separate and can be combined with an HSA.
Does an FSA save FICA tax for high earners?
Yes, but if your wages are above the Social Security wage base for the year, you no longer pay the 6.2% Social Security tax on the top part of your pay, so only the 1.45% Medicare portion is saved. Choose 1.45% in the FICA field in that case.
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Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.