Updated October 9, 2026. Quick answer: This table covers 21 states so far. California taxes HSA contributions and earnings; Alabama lets residents deduct them but not twice; Pennsylvania follows the federal deduction; Massachusetts’ budget office says they are outside its income tax; and Florida, Texas, Washington and Tennessee have no individual income tax on wages today. Of the 13 added later, 6 follow the federal deduction (Idaho, Kansas, Nebraska, Oregon, West Virginia and Wisconsin); 4 have no individual income tax (Alaska, Nevada, South Dakota and Wyoming); 2 allow a deduction on their own return line (Kentucky and Mississippi); and Oklahoma exempts contributions to a state-established HSA. Every row comes from the state’s own documents, linked on the state’s page.
How the 21 states treat HSAs
Open a state’s page for the document quotes, the form line and what the documents leave open.
| State | Treatment | Basis |
|---|---|---|
| Alabama | Deductible, not twice | Line 12 deduction up to the federal maximum; pre-tax contributions not deductible again |
| Alaska | None | No individual income tax (Department of Revenue) |
| California | Taxed | Contributions added back (Schedule CA line 13); earnings taxable as earned |
| Florida | None | No personal income tax (Department of Revenue) |
| Idaho | Follows federal | Full-year residents: in federal AGI (Form 40 line 7). Part-year and nonresidents: Form 43 line 21 takes Idaho’s portion |
| Kansas | Follows federal | Full-year residents: in federal AGI (K-40 line 1). Nonresidents and part-year: Schedule S line B17, the portion applicable to income earned in Kansas |
| Kentucky | Deductible | Line 20 HSA deduction; federal limitations apply; not also itemized |
| Massachusetts | Not taxed | FY2026 budget: contributions, earnings and qualified distributions not subject to income tax |
| Mississippi | Deductible | Line 59 deduction for deposits plus accrued interest; nonqualified withdrawals are income |
| Nebraska | Follows federal | Full-year residents: in federal AGI (Form 1040N line 5). Nonresidents and partial-year: Schedule III, ratio of Nebraska AGI to federal AGI |
| Nevada | None | No individual income tax (Department of Taxation) |
| Oklahoma | Exempt (Oklahoma HSA) | Oklahoma-established HSA exempt; no second deduction; 10% additional tax on nonqualified withdrawals |
| Oregon | Follows federal | Federal HSA deduction flows through via federal AGI (adjustment code 003) |
| Pennsylvania | Deductible | Follows federal rules; Schedule O line 6, code H on PA-40 line 10 |
| South Dakota | None | No individual income tax (Department of Revenue) |
| Tennessee | None | Hall income tax never applied to wages; repealed from January 1, 2021 |
| Texas | None | No personal income tax (Constitution Art. VIII, Sec. 24-a) |
| Washington | None today | No individual income tax; a 9.9% tax on income over $1 million starts Jan. 1, 2028 |
| West Virginia | Follows federal | Full-year residents: in federal AGI (IT-140 line 1). Nonresidents and part-year: Schedule A line 21, as reported on the federal return |
| Wisconsin | Follows federal | Federal HSA rules apply; Wisconsin penalty is 33 percent of the federal penalty |
| Wyoming | None | No individual income tax (Legislative Service Office) |
Federal rules
The 2026 federal HSA limit for family coverage: Revenue Procedure 2025-19 says the annual limitation “with family coverage under a high deductible health plan is $8,750”. The self-only limit is $4,400 (Revenue Procedure 2025-19); see CMG’s 2026 HSA contribution limits page.
The 2026 federal HSA figures every state starts from
| Item (Revenue Procedure 2025-19) | Self-only coverage | Family coverage |
|---|---|---|
| Annual contribution limit | $4,400 | $8,750 |
| Minimum annual deductible of the qualifying health plan | $1,700 | $3,400 |
| Maximum annual out-of-pocket expenses of the plan | $8,500 | $17,000 |
States not yet covered
A state is added only when its own tax documents say how it treats HSAs. Several states whose documents read here start from federal income without naming HSAs are left out until a document says so.
Related: 2026 HSA contribution limits, and retirement taxes by state.
Each row comes from the state’s own tax documents; the first document for each state is linked below, and the rest are on the state’s page.
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Sources
- Form 40 Booklet (2025): https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf
- 2025 Instructions for Schedule CA (540): https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html
- Do I have to file a personal income tax return in Florida? (FAQ): https://floridarevenue.com/faq/Pages/FAQDetails.aspx?FAQID=1466
- 1.422: Health Savings Accounts (Governor’s FY26 Budget Recommendation, Tax Expenditure Budget): https://budget.digital.mass.gov/govbudget/fy26/tax-expenditure-budget/personal-income-tax/deductions-from-adjusted-gross-income/1-422
- 2025 PA-40 Personal Income Tax Return Instructions: https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforindividuals/pit/documents/2025/2025_pa-40in.pdf
- Hall Income Tax: https://www.tn.gov/revenue/taxes/hall-income-tax.html
- Texas Constitution Article VIII (annotated): https://tcss.legis.texas.gov/resources/CN/pdf/CN.8.pdf
- Income tax: https://dor.wa.gov/taxes-rates/income-tax
- Revenue Procedure 2025-19 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-19.pdf
- 2025 Form 740-NP Packet Instructions: https://revenue.ky.gov/Forms/740-NP%20Packet%20Instructions%20(2025).pdf
- 2025 Form 80-100-25-1-1-000 Resident, Non-Resident and Part-Year Resident Income Tax Instructions: https://www.dor.ms.gov/sites/default/files/tax-forms/individual/80100251%202.pdf
- Income Tax in Nevada: https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/
- 2025 Oklahoma Resident Individual Income Tax Forms and Instructions (Form 511 packet): https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
- 2025 Publication OR-17, Oregon Individual Income Tax Guide: https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf
- Health Savings Accounts, Fact Sheet 1105: https://www.revenue.wi.gov/DOR%20Publications/1105healthsavings.pdf
- Personal Income (Tax Types): https://tax.alaska.gov/programs/programs/index.aspx?10001
- Individual Income Tax Instructions Packet 2025 (EIN00046): https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_03-02-2026.pdf
- 2025 Kansas Individual Income Tax Instructions (K-40): https://www.ksrevenue.gov/pdf/ip25.pdf
- 2025 Nebraska Individual Income Tax and Amended Return Booklet: https://revenue.nebraska.gov/sites/default/files/doc/tax-forms/2025/f_Individual_Income_Tax_Booklet.pdf
- Taxes (Individuals): https://dor.sd.gov/individuals/taxes/
- West Virginia Personal Income Tax Forms & Instructions: https://tax.wv.gov/Documents/PIT/2025/it140.PersonalIncomeTaxFormsAndInstructions.2025.pdf
- Wyoming Taxation Rates and Collections (June 3, 2025): https://wyoleg.gov/InterimCommittee/2025/03-202506032-01WyomingtaxstructureratesandcollectionsJune32025.pdf
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.