HSA Tax Benefits in Colorado (2026)
Colorado follows federal HSA tax treatment. Full state deduction for contributions.
State Income Tax
4.4%
HSA Deduction
Yes
Growth Tax-Free
Yes
How Colorado Treats HSAs
Colorado conforms to federal HSA tax treatment. Contributions are deductible, earnings grow tax-free, and qualified withdrawals are exempt from state income tax.
Colorado HSA FAQs
Are HSA contributions tax-deductible in Colorado?
Yes. Colorado follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Colorado?
Colorado's state income tax rate is 4.4%.
Is HSA investment growth taxed in Colorado?
No. Colorado 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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