Updated October 5, 2026. Quick answer: Kansas starts from the federal figure. A full-year resident enters federal adjusted gross income on Form K-40, line 1, which already reflects the federal HSA deduction. For nonresidents and part-year residents, the Department of Revenue’s 2025 K-40 instructions list “Health Savings Account Deduction” among the federal adjustments, limited to “the portion of the federal deduction applicable to income earned in Kansas”. The 2026 federal HSA limits are $4,400 for self-only coverage and $8,750 for family coverage.
Kansas HSA tax treatment at a glance
| Item | What the documents say |
|---|---|
| Contributions | Full-year residents: already in federal adjusted gross income on Form K-40, line 1. Nonresidents and part-year residents: an allowed federal adjustment on Schedule S, line B17, limited to the portion applicable to income earned in Kansas |
| Earnings | Not stated in the documents read |
| Distributions | Not stated in the documents read |
| Where it is reported | Form K-40, line 1 (federal adjusted gross income); Schedule S, Part B, line B17 for nonresidents and part-year residents |
| Federal HSA limits, 2026 | $4,400 self-only; $8,750 family |
| Source | Kansas Department of Revenue; IRS Revenue Procedure 2025-19 |
What the Kansas documents say
The Kansas Department of Revenue’s 2025 K-40 instructions include a list of federal adjustments that Kansas allows. The list is introduced as “the list of allowed federal adjustments as of publication of these instructions”, and it includes the “Health Savings Account Deduction”, limited to the portion applicable to income earned in Kansas.
The instructions tell the filer to enter these adjustments on “LINE B17” of Schedule S, the schedule the instructions use for Kansas source income of nonresidents and part-year residents.
Earnings, distributions and the rest
The text read is a list inside the instructions for Kansas source income of nonresidents and part-year residents. It does not describe a full-year Kansas resident’s HSA treatment in its own sentence, and it does not address HSA earnings or distributions. This page therefore says only what the list says.
A worked example at the 2026 family limit
An illustration, not a return: a nonresident or part-year resident with family coverage who makes the 2026 federal family limit of $8,750 as a deductible contribution would, under the list, enter the portion of that federal deduction applicable to income earned in Kansas on Schedule S, line B17. That is $4,350 more than the self-only limit of $4,400 would allow. The instructions do not give a percentage; the portion depends on the filer’s Kansas income.
What a mover should know
Every figure on this page is Kansas’s own rule. If you moved during the year, or live in one state and work in another, check each state’s page and return, because the documents read here describe only Kansas and none of them settles a part-year or two-state case. The federal side is the same everywhere: see CMG’s 2026 HSA contribution limits page, and state tax on HSA contributions for the other states checked.
What the documents do not say
- The documents read are for tax year 2025. The HSA deduction appears in a list of allowed federal adjustments, not in a stand-alone rule, and no Kansas statute is cited. Earnings and distributions are not addressed.
Common mistakes
- Taking the whole federal deduction as a Kansas-source adjustment when the instructions limit it to the portion applicable to income earned in Kansas.
- Assuming the answer for one state applies to another, or that the state answer changes the federal limits.
Related: 2026 HSA contribution limits, state tax on HSA contributions, Kansas retirement taxes, and how Kansas taxes 401(k) and IRA withdrawals.
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Answer againSources
- 2025 Kansas Individual Income Tax Instructions (K-40): https://www.ksrevenue.gov/pdf/ip25.pdf
- Revenue Procedure 2025-19 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-19.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.