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Guide · Dependent care FSA
Dependent care FSA limit for 2027: $7,500
What the 2027 limit is, where it comes from, why your own limit may be lower, and what to check before open enrollment closes.
Short answer: for 2027 the most an employer dependent care FSA can exclude from your income is $7,500 per household ($3,750 if you are married and file separately). That figure is set by statute and is not indexed to inflation. Your employer’s plan may set a lower limit.
Where the $7,500 comes from
The cap lives in the tax code. 26 U.S.C. §129(a)(2)(A) says the amount excluded for dependent care assistance for care provided in a taxable year “shall not exceed $7,500 ($3,750 in the case of a separate return by a married individual).” Congress raised it from $5,000 ($2,500) in section 70404 of Public Law 119-21, the 2025 budget law known as the One Big Beautiful Bill Act (OBBBA). The effective-date note in the same statute page says the change applies to taxable years beginning after December 31, 2025, so 2026 was the first year at $7,500.
Many tax numbers are adjusted for inflation every year. This one isn’t: the text of §129 states flat dollar amounts and contains no inflation adjustment, which is why the 2027 limit is the same as 2026. Congress could change it again, so treat it as “unchanged as of 2026-10-24” rather than permanent. The IRS repeats the $7,500 figure in Publication 15-B (for employers) and on its Child and Dependent Care Credit page.
It is a ceiling, not a promise
The $7,500 is the most the tax code allows. Your employer decides what its plan actually offers. The Form 2441 instructions tell you to enter the maximum allowed under your dependent care plan, and the draft 2026 version adds that employers “may” raise the maximum and that your employer can tell you whether your plan was amended to do so. If your plan still says $5,000, that’s your cap.
Federal employees have a clear published answer. OPM’s FSAFEDS fact sheet lists up to $7,500 for households filing jointly and $3,750 for those married filing separately, and a federal agency’s open-season page (Interior IBC) states the maximum Dependent Care FSA election is $7,500 for the 2027 benefit period. If you work for a private employer, a school district or a state, read your own benefits guide.
Three rules that can make your personal limit lower
- It’s per household. If you and your spouse both have access to a dependent care FSA, you can’t each claim $7,500. FSAFEDS states this plainly in a footnote on its Dependent Care FSA page.
- Earned income caps it. Under §129(b) the excluded amount can’t exceed your earned income or, if you’re married, the lesser of your earned income and your spouse’s. (There is a special rule for a spouse who is a full-time student or unable to care for themselves.)
- Excess is taxable. Anything above the limit is included in your income for the year the care was provided (§129(a)(2)(B)). Payroll systems are designed to prevent this, but if you and a spouse each elect at different employers it’s worth a check.
Example (illustrative numbers)
Two spouses each have an employer dependent care FSA. One elects $5,000 and the other elects $5,000. Together that is $10,000, which is $2,500 above the $7,500 household limit, so the extra $2,500 would be taxable. Coordinate so your combined elections stay at or below the limit.
When you actually choose the amount
Most people pick the 2027 amount during their employer’s fall open enrollment. For federal employees, OPM says the 2027 open season runs November 9 through December 14, 2026, and FSAFEDS participants must re-enroll because the account doesn’t continue automatically. Other employers set their own dates. Outside open enrollment, FSAFEDS says you can generally change only after a qualifying life event, so the number you choose in the fall tends to stay for the year.
That is why the cap matters less than the question that comes next: how much will you really spend on eligible care? Money left in a dependent care FSA is generally forfeited, so choosing the amount is the harder decision. If summer camp is a big part of your care costs, see which camps count.
What changed, in one table
| Through 2025 | 2026 and 2027 | |
|---|---|---|
| Employer dependent care FSA / exclusion | $5,000 ($2,500 if married filing separately) | $7,500 ($3,750 if married filing separately) |
| Indexed to inflation? | No | No (flat amounts in §129) |
Sources for the 2025 figure: Publication 503 (2025). For the separate Child and Dependent Care Credit, which also changed in 2026, see our FSA vs. credit comparison.
Sources
- IRC §129, Dependent care assistance programs (Cornell LII)
- IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits
- IRS: Child and Dependent Care Credit information
- IRS Instructions for Form 2441
- IRS draft 2026 Instructions for Form 2441 (PDF, draft)
- FSAFEDS: Dependent Care FSA
- OPM: Federal Flexible Spending Account Program (FSAFEDS) fast facts
- OPM: 2026 Federal Benefits Open Season highlights for plan year 2027 (PDF)
- U.S. Department of the Interior IBC: Federal Benefits Open Season (2027 FSAFEDS limits)
General information, not tax advice. Last checked: 2026-10-24. US federal rules only; your employer’s plan, your state and your own situation can change the answer, so confirm with your plan administrator or a tax professional. CampSorted is not affiliated with the IRS or OPM.