Updated October 9, 2026. Quick answer. The 2027 FSA contribution limit is not yet officially announced by the IRS. The current, settled 2026 salary-reduction limit is $3,400, with a maximum carryover into 2027 of $680; the official 2027 number follows the same October/November IRS revenue procedure as dozens of other figures.
More on the 2027 tax figures: the 2027 employer student loan repayment limit.
More on the 2027 tax figures: the 2027 commuter benefit limit and the 2027 QSEHRA limit.
Line-by-line IRS form guides for 2025: Form 2441, Form 2441 lines 12 to 15 and Form 2441 lines 16 to 21.
The 2026 FSA limits and the HSA comparison: the 2026 FSA limits and the 2026 HSA contribution limits.
What’s actually settled, vs. still open
Settled for 2026 (Rev. Proc. 2025-32, §4.15, quoted directly): “the dollar limitation under §125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,400. If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $680.”
Projected, not official, for 2027: Mercer’s own June 11, 2026 estimate of $3,500 / $700, published in “Mercer projects 2027 transportation and health FSA limits.” The carryover cap is a regulatory rule (20% of the current year’s contribution limit), not a separately indexed statutory figure, which is why it tracks the contribution limit closely.
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How our partner relationships workThe numbers, year by year
| Plan year | Contribution limit | Carryover limit |
|---|---|---|
| 2022 | $2,850 | $570 |
| 2023 | $3,050 | $610 |
| 2024 | $3,200 | $640 |
| 2025 | $3,300 | $660 |
| 2026 | $3,400 | $680 |
| 2027 (Mercer projection, June 11, 2026) | $3,500 | $700 |
How Mercer builds the estimate
Mercer states its own methodology: applying the Internal Revenue Code’s cost-of-living adjustment method to the Chained CPI-U values actually observed through June, plus Mercer’s own projected values for July and August, the same two-month window the IRS itself uses to close out the measurement before publishing the official figure each autumn. Treat it as an early, attributed estimate, not the final number.
Sources
2026 figures: IRS Revenue Procedure 2025-32, §4.15, published 2025-10-09, read at irs.gov/pub/irs-drop/rp-25-32.pdf on 2026-09-04. Statute: 26 U.S.C. §125(i). 2027 projection: Mercer, “Mercer projects 2027 transportation and health FSA limits,” published 2026-06-11, read at mercer.com on 2026-09-04.
This page is updated the day the official figure is announced, and any projection above will be struck through rather than deleted, so the record of what was projected vs. what actually happened stays visible. See the 2027 numbers hub for every figure this program tracks, projected vs. official. General information, not tax or legal advice.
A different FSA figure moved much further: the dependent care FSA’s own new $7,500 limit.