Informational purposes only
The following content has been prepared for informational purposes only, and shouldn't be relied on for tax, legal, or accounting advice. Consult a tax professional for your own reporting purposes.
Federal income taxes offer a deduction for HSA contributions, and don't tax HSA growth (dividends or interest). However, states have their own tax rules, and may tax HSA contributions or growth differently. Below is the most accurate information we have as of January 2026.
States with income taxes that follow federal HSA tax treatment
These states have income taxes, but follow federal HSA tax treatment, they treat HSA contributions as tax-deductible and don't tax HSA growth.
Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, 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
States with income taxes that do not follow federal HSA tax treatment
These states have income taxes but don't follow federal HSA tax treatment, they don't consider HSA contributions tax-deductible, and do tax HSA growth (interest and dividends).
California, New Jersey
States without income tax, and that don't tax HSA growth
These states don't have an income tax, so there's no income tax deduction for HSA contributions (there's no income tax to deduct from). They also don't tax HSA growth.
Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming