HSA Tax Benefits in South Carolina (2026)
South Carolina follows federal HSA tax treatment.
State Income Tax
0%–6.4%
HSA Deduction
Yes
Growth Tax-Free
Yes
How South Carolina Treats HSAs
South Carolina conforms to federal HSA tax treatment. Contributions are deductible on your state return, investment growth is tax-free, and qualified medical withdrawals are exempt from state tax.
South Carolina HSA FAQs
Are HSA contributions tax-deductible in South Carolina?
Yes. South Carolina follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in South Carolina?
South Carolina's state income tax rate is 0%–6.4%.
Is HSA investment growth taxed in South Carolina?
No. South 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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