HSA Tax Benefits in North Carolina (2026)
North Carolina follows federal HSA tax treatment.
State Income Tax
4.5%
HSA Deduction
Yes
Growth Tax-Free
Yes
How North Carolina Treats HSAs
North Carolina conforms to federal HSA tax rules. Contributions are deductible, earnings grow tax-free, and qualified distributions are exempt from state income tax.
North Carolina HSA FAQs
Are HSA contributions tax-deductible in North Carolina?
Yes. North Carolina follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in North Carolina?
North Carolina's state income tax rate is 4.5%.
Is HSA investment growth taxed in North Carolina?
No. North Carolina 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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