HSA Tax Benefits in Texas (2026)
Texas has no state income tax. HSA funds are not subject to any state tax.
State Income Tax
None
HSA Deduction
N/A (No Tax)
Growth Tax-Free
Yes
How Texas Treats HSAs
Texas does not levy a state income tax, making it one of the most HSA-friendly states. Contributions, investment growth, and qualified withdrawals carry zero state tax burden. You receive full federal HSA tax benefits.
Texas HSA FAQs
Are HSA contributions tax-deductible in Texas?
Texas has no state income tax, so HSA contributions are inherently tax-free at the state level.
What is the state income tax rate in Texas?
Texas's state income tax rate is 0%. Since there's no income tax, HSA benefits are automatically maximized.
Is HSA investment growth taxed in Texas?
No. Texas 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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