HSA Tax Benefits in District of Columbia (2026)
DC follows federal HSA tax treatment with full state benefits.
State Income Tax
4%–10.75%
HSA Deduction
Yes
Growth Tax-Free
Yes
How District of Columbia Treats HSAs
The District of Columbia conforms to federal HSA tax treatment. Contributions are deductible, investment earnings grow tax-free, and qualified medical withdrawals are exempt from DC income tax.
District of Columbia HSA FAQs
Are HSA contributions tax-deductible in District of Columbia?
Yes. District of Columbia follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in District of Columbia?
District of Columbia's state income tax rate is 4%–10.75%.
Is HSA investment growth taxed in District of Columbia?
No. District of Columbia 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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