Updated October 5, 2026. Quick answer: No. Texas has no personal income tax, so there is nothing to tax an HSA contribution under. The Texas Constitution, Article VIII, Section 24-a, is headed “INDIVIDUAL INCOME TAX PROHIBITED” and says the legislature “may not impose a tax on the net incomes of individuals”. The 2026 federal HSA limits are $4,400 for self-only coverage and $8,750 for family coverage.
Texas HSA tax treatment at a glance
| Item | What the documents say |
|---|---|
| Contributions | No state tax: Texas has no personal income tax |
| Earnings | Not stated in the documents read; no personal income tax applies |
| Distributions | Not stated in the documents read; no personal income tax applies |
| Where it is reported | No Texas individual return for income tax |
| Federal HSA limits, 2026 | $4,400 self-only; $8,750 family |
| Source | Texas Legislative Council (tcss.legis.texas.gov); Texas Comptroller of Public Accounts; IRS Revenue Procedure 2025-19 |
What the Texas documents say
The Texas Legislative Council’s annotated constitution carries Article VIII, Section 24-a under the heading “INDIVIDUAL INCOME TAX PROHIBITED”. The Comptroller’s 2016 Fiscal Notes article says plainly that “Texas does not have a personal income tax”.
Earnings, distributions and the rest
The documents read do not mention HSAs. The conclusion that Texas does not tax HSA contributions, earnings or distributions follows from the constitutional bar on an individual income tax, not from an HSA rule. Federal rules still decide whether a contribution is excluded or deductible and whether a nonqualified distribution is taxed or penalized.
A worked example at the 2026 family limit
An illustration: a Texas resident with family coverage who contributes the 2026 federal family limit of $8,750 owes $0 of Texas personal income tax on it, because Texas may not impose one. The federal limit for self-only coverage is $4,400, so the family contribution is $4,350 larger.
What a mover should know
Every figure on this page is Texas’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 Texas 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
- No Texas document read mentions health savings accounts by name; the answer is the absence of the tax. The Comptroller article is from 2016.
Common mistakes
- Assuming the federal rules disappear along with the state tax; the federal limits and the nonqualified-distribution rules still apply to a Texas resident.
- 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, Texas retirement taxes, and how Texas taxes 401(k) and IRA withdrawals.
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Answer againSources
- Texas Constitution Article VIII (annotated): https://tcss.legis.texas.gov/resources/CN/pdf/CN.8.pdf
- Starting a New Business (Fiscal Notes, February 2016): https://comptroller.texas.gov/economy/fiscal-notes/archive/2016/february/starting.php
- 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.