2026 Tax inflation adjustments

Health Flexible Spending Cafeteria Plans.

The dollar limitation for voluntary employee salary reductions for contributions increases to $3,400, up $100 from 2025.

For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $680, an increase of $20 from tax years beginning in 2025.

Medical Savings Accounts.

For self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,900, up $50 from tax year 2025 – but not more than $4,400, an increase of $100 from tax year 2025.

For self-only coverage, the maximum out-of-pocket expense amount is $5,850, up $150 from 2025.

For tax year 2026, for family coverage, the annual deductible is not less than $5,850, up from $5,700 for 2025. The deductible cannot be more than $8,750, up $200 from the limit for tax year 2025. For family coverage, the out-of-pocket expense limit is $10,700 for tax year 2026, an increase of $200 from tax year 2025.

Foreign Earned Income Exclusion

The foreign earned income exclusion is $132,900 up from $130,000 for tax year 2025.

* More adjustments are coming soon.

As of October 9, 2025