IRS Publishes 2025 Annual Benefits Maximums

IRS Publishes 2025 Annual Benefits Maximums

The IRS published the 2025 limits for several types of benefits that have maximums subject to annual change. You can find the full list of the new amounts in the IRS Revenue Procedure 2024-40.

The most commonly asked about limits are below and are applicable to taxable years starting in 2025.

Health Flexible Spending Account (HFSA)


The HFSA contribution limit is $3,300. For HFSAs that include a carryover feature, the maximum carryover is $660.

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)


The maximum total for all QSEHRA reimbursement and payments is $6,350 for single coverage and $12,800 for family coverage.

Adoption Assistance Programs


The maximum employee tax credit and amount an employer can provide for adoption assistance is $17,280. The tax credit begins to phase out for individuals with a modified adjusted gross income above $259,190 and is completely phased out at $299,190 and above.

Qualified Commuter Plans—Mass Transit and Parking


The monthly limits for both qualified parking and mass transit is $325.

Original content by irs.gov. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.