HSA vs PPO Calculator

Often, but it depends on how much care you use. The HDHP usually has lower premiums, an employer HSA contribution and a tax deduction for what you put in, while the PPO pays more of each bill. For light and moderate users the HDHP tends to win; in a heavy year the answer turns on the two out-of-pocket maximums and the premium gap. The calculator finds the spending level at which the plans cost the same.

For 2027, $4,500 for self-only coverage and $9,000 for family coverage; for 2026, $4,400 and $8,750. Add $1,000 at 55 or older, and each spouse needs their own HSA for their catch-up. The limit includes your employer's contributions. To contribute at all, your plan must be a qualifying high-deductible plan: for 2027 a deductible of at least $1,750 self-only or $3,500 family and an out-of-pocket maximum of no more than $8,700 or $17,400 (for 2026, $1,700 / $3,400 and $8,500 / $17,000).

Yes, from 2026. The 2025 tax law treats bronze and catastrophic plans bought as individual coverage through a marketplace as high-deductible plans, even if their deductible or out-of-pocket maximum would not otherwise qualify. Identical plans bought off the exchange also count; small-business (SHOP) bronze plans do not. The same law made telehealth before the deductible permanently allowed and lets you pair an HSA with a direct primary care arrangement of up to $150 a month.

You must be covered by a qualifying high-deductible plan and have no other disqualifying coverage. The common traps are a general-purpose health FSA, including one through a spouse's employer, enrolling in Medicare (the limit drops to zero from the first month of entitlement), and being claimed as someone's dependent. A limited-purpose FSA for dental and vision is fine.

Contributions through payroll avoid federal income tax, most states' income tax and the 7.65% FICA tax. At a 22% federal bracket and a 5% state rate, $3,400 of payroll contributions saves about $1,178. Contributions made directly, outside payroll, are deductible on your return but do not get the FICA saving. Above the Social Security wage base ($184,500 in 2026, $192,300 in 2027), only Medicare's 1.45% is saved.

Yes. Both states tax HSA contributions and the account's earnings each year, so residents get only the federal and FICA savings. A California bill to conform for 2026–2030 died in January 2026. The calculator drops the state saving when you tick the box.

If you know you will have out-of-pocket costs, a health FSA lets you pay them with pre-tax money, which narrows the gap with the HSA. The catch is that unspent FSA money is generally lost at the end of the plan year, apart from a limited carryover or grace period if your employer offers one. The 2026 FSA limit is $3,400; the 2027 figure had not been published when this was written.

It stays yours, even if you change jobs or plans. It can be invested, grows tax-free, and comes out tax-free for qualified medical costs at any age. After 65 you can also withdraw it for anything, paying income tax like an IRA withdrawal. This calculator compares one year only, so it leaves that long-term value out.

An excess contribution is taxed at 6% for every year it stays in the account. Remove the excess and its earnings by the due date of your return, including extensions, to avoid the tax. Remember that your employer's contributions count toward the same limit.