Updated October 28, 2026. Quick answer: The IRS has not yet announced the 2027 QSEHRA limit, the most a small employer can reimburse an employee for health costs under a qualified small employer health reimbursement arrangement. For 2026 it is $6,450 for self-only coverage and $13,100 for family coverage, per Rev. Proc. 2025-32. This page updates the day the IRS publishes the 2027 amounts.
More on the 2026 tax figures: the 2026 QSEHRA limit.
IRS worksheets for the 2025 return: QSEHRA Affordability Worksheet N.
What is not yet announced
As of October 28, 2026 the IRS has not published the Revenue Procedure that sets the 2027 inflation-adjusted amounts; the 2026 version was Rev. Proc. 2025-32. This page states only the 2026 figure, as a 2026 figure, and changes when the IRS publishes the 2027 Revenue Procedure.
The 2026 limits
| Year | Self-only coverage | Family coverage | Source |
|---|---|---|---|
| 2026 | $6,450 | $13,100 | Rev. Proc. 2025-32, section 4, item .63 |
| 2027 | not yet announced | not yet announced | Awaiting the 2027 Revenue Procedure |
| Amounts printed in the statute (2024 edition) | $4,950 | $10,000 | 26 U.S.C. 9831(d)(2)(B) |
The IRS wrote: “For taxable years beginning in 2026, to qualify as a qualified small employer health reimbursement arrangement under § 9831(d), the arrangement must provide that the total amount of payments and reimbursements for any year cannot exceed $6,450 ($13,100 for family coverage).”
What the statute says
Section 9831(d) lets such an arrangement sit outside the group health plan rules: the term group health plan “shall not include any qualified small employer health reimbursement arrangement.” To qualify, the arrangement must be “funded solely by an eligible employer and no salary reduction contributions may be made under such arrangement”. The statute states the cap as “do not exceed $4,950 ($10,000 in the case of an arrangement that also provides for payments or reimbursements for family members of the employee)”, and those base amounts are adjusted for inflation each year into the $6,450 and $13,100 above. Section 9831(d)(2)(D)(ii) is the indexing rule: each base amount “shall be increased by an amount equal to” that amount multiplied by “the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins”, with calendar year 2015 as the base year, and “If any dollar amount increased under the preceding sentence is not a multiple of $50, such dollar amount shall be rounded to the next lowest multiple of $50.”
What to compare against
The QSEHRA cap is one of several health-benefit limits that move each year. The employee contribution limits for health FSAs and HSAs are on the 2027 FSA limit page and the 2027 HSA limits page. This page covers only the arrangement under section 9831(d).
Common mistakes
- Using $4,950 or $10,000, the base amounts printed in the statute. The inflation-adjusted 2026 caps are $6,450 and $13,100.
- Mixing it up with an individual coverage HRA. They are separate arrangements, and this page covers only the QSEHRA under section 9831(d).
- Using a 2027 number from a vendor. Until the IRS publishes the 2027 Revenue Procedure there is none.
Related: the 2027 FSA limit, the 2027 HSA limits, the 2027 ACA affordability percentage, and the 2027 tax numbers.
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Answer againSources
- Internal Revenue Service, Rev. Proc. 2025-32, tax year 2026 inflation-adjusted amounts, as modified by the One, Big, Beautiful Bill Act: www.irs.gov
- 26 U.S.C. 9831, General exceptions (U.S. Code, 2024 edition, U.S. Government Publishing Office): www.govinfo.gov
Read from the primary documents linked above on October 28, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.