FSA Calculator

Q: Can I change my FSA election mid-year?

Only with a qualifying life event: marriage, divorce, birth/adoption, death of dependent, spouse's employment change, or significant cost change. Otherwise your election is locked for the plan year.

Calculate your tax savings from a Health FSA or Dependent Care FSA. See how much to contribute, compare FSA vs HSA, and find the best DCFSA vs CDCC strategy for your family.

See how much you save by using pre-tax dollars for medical expenses

Annual medical expenses

Copays, prescriptions, dental, vision, therapy

Filing status

Gross income

State income tax rate

CA: 9.3%, NY: 6.85%, TX/FL: 0%

Employer carryover policy

Ask HR: carryover OR grace period, not both

Pay frequency

—

Try another scenario

How to Use This Calculator

Health FSA Tax Savings tab

The default tab. Enter your annual medical expenses, filing status, and gross income. The calculator shows how much you save in federal income tax, FICA (7.65%), and state tax by paying with pre-tax FSA dollars. Expand "More options" to adjust state tax rate, carryover policy, and pay frequency.

How Much to Contribute? tab

Use this during open enrollment. Check the expense categories that apply to you (copays, dental, vision, therapy, etc.), adjust amounts, and set your confidence level. The calculator recommends an FSA election amount with forfeiture risk analysis and carryover protection.

FSA vs HSA vs DCFSA tab

Compare all pre-tax health and dependent care accounts side by side. If you have children, see the DCFSA vs CDCC tax credit comparison — which one saves more at your income level. The calculator finds your optimal combination.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a partner, HR, or financial advisor.

The Formula

FSA contributions are pre-tax, saving you three types of tax:

Total Tax Savings = Federal Savings + FICA Savings + State Savings

Federal Savings = FSA Contribution × Marginal Tax Rate
FICA Savings = FSA Contribution × 7.65% (SS 6.2% + Medicare 1.45%)
State Savings = FSA Contribution × State Income Tax Rate

Effective Discount = Total Savings ÷ Contribution × 100

The key advantage of an FSA over a regular tax deduction is FICA savings. A $3,400 FSA contribution saves $260 in FICA alone — money you'd never get back with an itemized deduction.

For dependent care, the DCFSA saves more than the CDCC tax credit at most income levels because DCFSA eliminates FICA in addition to income tax.

Example

Maria — HR Coordinator, 34, Denver CO

Maria earns $95K household income (MFJ), has 2 kids (ages 3 and 6), pays $14,000/yr in daycare, and expects $2,400 in medical expenses. Colorado state tax: 4.4%. Her employer offers $680 carryover.

Health FSA Tax Savings tab

FSA election$2,400

Federal savings (22%)$528

FICA savings (7.65%)$184

State savings (4.4%)$106

Total tax savings$818

Maria's $2,400 in medical expenses effectively costs her $1,582 — a 34% discount just by using pre-tax dollars.

FSA vs HSA vs DCFSA tab

DCFSA savings ($7,500)$2,554

CDCC credit (without DCFSA)$2,100

DCFSA wins by$454

Best combo total$3,372

Maria uses Health FSA ($2,400) + DCFSA ($7,500) for $3,372 total tax savings. The DCFSA alone beats the CDCC by $454 because it eliminates FICA on top of income tax.

FAQ

What is a Flexible Spending Account (FSA)? ▼

An FSA is a pre-tax account through your employer for medical expenses. Money goes in before federal income tax, FICA (Social Security + Medicare), and state tax are calculated. The 2026 limit is $3,400. Unused funds are forfeited at year-end unless your employer offers a $680 carryover or 2.5-month grace period.

What’s the difference between an FSA and an HSA? ▼

HSA requires a high-deductible health plan (HDHP), has higher limits ($4,400/$8,750 in 2026), rolls over forever, is portable between employers, and can be invested. FSA works with any health plan, has a $3,400 limit, and only carries over $680. HSA is generally better if you qualify — but you can pair an HSA with a Limited-Purpose FSA (dental/vision only).

What changed for DCFSA in 2026? ▼

The OBBBA permanently raised the Dependent Care FSA limit from $5,000 to $7,500 ($3,750 for married filing separately), effective January 1, 2026. This is the first increase since 1986. The new limit is not indexed for inflation. Your employer must amend their plan to offer the higher amount — check with HR.

Should I use DCFSA or the Child Care Tax Credit? ▼

At most income levels, DCFSA saves more because it eliminates FICA (7.65%) in addition to income tax. The CDCC is capped at $3,000/$6,000 in qualifying expenses and is nonrefundable. You can use both: DCFSA for the first $7,500 in childcare, then claim the CDCC on remaining expenses up to the $6,000 cap. Use the FSA vs HSA vs DCFSA tab to compare at your exact income.

Can I change my FSA election mid-year? ▼

Only with a qualifying life event: marriage, divorce, birth or adoption, death of a dependent, spouse’s employment change, or a significant cost change. Otherwise your election is locked for the full plan year. This is why the “How Much to Contribute?” tab is important — getting your election right during open enrollment saves you from forfeiting unused funds.

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