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2026 Update

2026 Dependent Care FSA Contribution Limits

Last updated August 17, 2026

For the first time since 1986, the annual contribution limit for a Dependent Care Flexible Spending Account (DCFSA) has increased. For tax year 2026, the limit rises to $7,500 per household — up from $5,000 in 2025. The change was enacted through the One Big Beautiful Bill Act (OBBBA).

The new 2026 limits at a glance

  • $7,500 for single filers, heads of household, and married couples filing a joint return.
  • $3,750 for married individuals filing separately.
  • If you and your spouse each have access to a Dependent Care FSA through separate employers, your combined household contributions across both accounts still cannot exceed the joint limit.

Why the limit changed

The Dependent Care FSA limit had been fixed at $5,000 by statute since 1986 and was never indexed for inflation — the one exception being a temporary, one-year increase to $10,500 for 2021 under the American Rescue Plan Act. The One Big Beautiful Bill Act (OBBBA) permanently raises the limit starting with the 2026 tax year, reflecting decades of inflation in child care costs.

What this means for your paycheck

If your employer offers a Dependent Care FSA, you can elect to set aside up to the new limit from your paycheck, pre-tax, during your next open enrollment period. Because the contribution avoids both income tax and FICA (Social Security and Medicare) tax, a higher limit means a larger potential tax-free cushion for child care, preschool, summer day camp, or care for an incapacitated adult dependent.

Use the Dependent Care FSA savings calculator to estimate your actual dollar savings at the new limit based on your income and expected expenses.

Confirm with your employer

Employers must formally amend their Section 125 cafeteria plan documents to reflect the new limit before employees can elect the higher amount. Most employers are expected to adopt the increase for the 2026 plan year, but confirm with your HR or benefits team before assuming the full $7,500 is available to you.

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