Federal income taxes:
Offer deductions for contributions to health savings accounts and
Doesn't tax HSA growth (dividends or interest)
However, states have their own taxes and may tax health savings account contributions or growth. Below is the most accurate information we have as of March 2024.
Consult with a tax professional
We always recommend that you consult with a tax professional; this is not intended to provide tax or investment advice.
States with income taxes that follow federal HSA tax treatment
These states have income taxes, but they follow federal HSA tax treatment and
Treat HSA contributions as tax-deductible and
Do not tax HSA growth.
Alabama | Arizona | Arkansas | Colorado | Connecticut |
Deleware | Georgia | Hawaii | Idaho | Illinois |
Indiana | Iowa | Kansas | Kentucky | Louisiana |
Maine | Maryland | Massachusetts | Michigan | Minnesota |
Mississippi | Missouri | Montana | Nebraska | New Mexico |
New York | North Carolina | North Dakota | Ohio | Oklahoma |
Oregon | Pennsylvania | Rhode Island | South Carolina | Utah |
Virginia | Vermont | West Virginia | Wisconsin |
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Source: HSAforAmerica
States with income taxes that do not follow federal HSA tax treatment
These states have income taxes but do not follow federal HSA tax treatment. They
Don't consider HSA contributions tax deductible, and
Tax HSA growth (interest and dividends).
California | New Jersey |
Source: HSAforAmerica
States without income tax and don't tax HSA growth
These states don't even tax income, so there is no income tax deduction for HSA contributions. (Because there is no income tax.) These states also do not tax HSA growth (interest or dividends).
South Dakota | Florida | Nevada |
South Dakota | Texas | Washington |
Wyoming |
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Source: HSAforAmerica
States without income tax but tax HSA growth
These states don't have an income tax, so HSA contributions are not taxed as a part of taxable income. However, they do tax dividends and interest on health savings accounts.
New Hampshire* | Tennessee** |
*for earnings over $2400 in a year, or $4800 if filing jointly.
**for earnings over $1,400 in a year, or $2500 if filing jointly.
Source: Tennessee Department of Revenue