Full HSA Tax Benefits

HSA Tax Benefits in Idaho (2026)

Idaho follows federal HSA tax treatment.

State Income Tax

5.695%

HSA Deduction

Yes

Growth Tax-Free

Yes

How Idaho Treats HSAs

Idaho conforms to federal HSA tax rules. Contributions are deductible, earnings grow tax-free, and qualified withdrawals are exempt from state income tax.

Idaho HSA FAQs

Are HSA contributions tax-deductible in Idaho?

Yes. Idaho follows federal HSA tax treatment, so contributions are deductible on your state income tax return.

What is the state income tax rate in Idaho?

Idaho's state income tax rate is 5.695%.

Is HSA investment growth taxed in Idaho?

No. Idaho 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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