HSA Tax Benefits in Tennessee (2026)
Tennessee has no state income tax. HSA funds are not subject to state tax.
State Income Tax
None
HSA Deduction
N/A (No Tax)
Growth Tax-Free
Yes
How Tennessee Treats HSAs
Tennessee does not levy a state income tax on earned income. HSA contributions, growth, and qualified withdrawals are not subject to state taxation. You benefit fully from federal HSA tax treatment.
Tennessee HSA FAQs
Are HSA contributions tax-deductible in Tennessee?
Tennessee has no state income tax, so HSA contributions are inherently tax-free at the state level.
What is the state income tax rate in Tennessee?
Tennessee's state income tax rate is 0%. Since there's no income tax, HSA benefits are automatically maximized.
Is HSA investment growth taxed in Tennessee?
No. Tennessee 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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