HSA Tax Benefits in Arkansas (2026)
Arkansas follows federal HSA tax treatment with full deductibility.
State Income Tax
2%–4.4%
HSA Deduction
Yes
Growth Tax-Free
Yes
How Arkansas Treats HSAs
Arkansas conforms to federal HSA tax rules. Contributions are deductible on your state return, investment growth is tax-free, and qualified medical expense withdrawals are exempt from state income tax.
Arkansas HSA FAQs
Are HSA contributions tax-deductible in Arkansas?
Yes. Arkansas follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Arkansas?
Arkansas's state income tax rate is 2%–4.4%.
Is HSA investment growth taxed in Arkansas?
No. Arkansas follows federal treatment — investment growth inside your HSA is not subject to state income tax.
This information is for general guidance only and does not constitute tax advice. State tax laws change frequently. Consult a tax professional for advice specific to your situation.
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