HSA Calculator: Tax Savings and Growth
Enter what you and your employer put into a health savings account to see the yearly tax savings and the balance at retirement. HSA rules are federal and the same everywhere; your state only changes whether its income tax also lets you deduct the contribution, so pick your state to fill in its rate.
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Additional Details
Additional Details
Annual Tax Savings
Estimated • Based on your inputs
Projected Balance at Retirement
$129,011.00
Total Career Tax Savings
$23,720.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How this calculator works
Yearly tax savings are your contribution plus your employer's, capped at the 2026 limit ($4,400 self-only, $8,750 family coverage; IRS Rev. Proc. 2025-19), times your federal marginal rate plus the state rate you enter plus 7.65% FICA, because payroll contributions skip FICA too (money you deposit yourself saves income tax only). The balance grows each year by the contributions minus your medical spending, at your investment return; qualified medical withdrawals are tax-free. The $1,000 catch-up from age 55 is not modeled. The IRS has announced 2027 limits of $4,500 and $9,000 (Rev. Proc. 2026-24). HSA rules are federal; the only state difference is whether the state income tax also allows the deduction, shown in the table below.
Source: IRS Publication 969; state revenue departments' tax-year-2025 instructions (state table) checked
Does your state follow the federal HSA deduction? (2025 returns; South Carolina 2026)
Rows use each state's own tax-year-2025 instructions, read 2026-10-10, except South Carolina: H. 4216 changes its starting point to federal adjusted gross income for tax years after 2025 (source read 2026-10-17). The picker fills the state's bracket rate at median household income where the deduction applies, otherwise 0%.
| State | Follows the federal HSA deduction? | State rate saved |
|---|---|---|
| Alabama | Yes. Allows its own deduction for HSA deposits, up to the federal limit in 26 USC 223 (Form 40, Contributions to a Health Savings Account). Contributions already made with pre-tax pay are not deducted again. | 5% |
| Alaska | No tax on wages, so contributions save no state income tax (0%). | 0% |
| Arizona | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 2.5% |
| Arkansas | Yes. Allows payments to an HSA as an adjustment to income on Form AR1000ADJ. | 3.7% |
| California | No. Does not follow: the federal HSA deduction is added back on Schedule CA (540), line 13, and employer HSA contributions (W-2 box 12, code W) are added to wages on line 1h. | 0% |
| Colorado | Yes: the return starts from federal taxable income, which already reflects HSA contributions. | 4.4% |
| Connecticut | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.5% |
| Delaware | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 6.6% |
| Florida | No tax on wages, so contributions save no state income tax (0%). | 0% |
| Georgia | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.99% |
| Hawaii | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 7.6% |
| Idaho | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.3% |
| Illinois | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.95% |
| Indiana | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 2.95% |
| Iowa | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 3.8% |
| Kansas | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.58% |
| Kentucky | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 3.5% |
| Louisiana | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 3% |
| Maine | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 7.15% |
| Maryland | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5% |
| Massachusetts | Yes. Allows the HSA deduction on Schedule Y, line 8: the amount from federal Schedule 1, line 13. | 5% |
| Michigan | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.25% |
| Minnesota | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 6.8% |
| Mississippi | Yes. Allows HSA deposits plus accrued interest as a deduction on Form 80-105, line 59. | 4% |
| Missouri | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.7% |
| Montana | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.65% |
| Nebraska | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.55% |
| Nevada | No tax on wages, so contributions save no state income tax (0%). | 0% |
| New Hampshire | No tax on wages, so contributions save no state income tax (0%). | 0% |
| New Jersey | No. Does not follow: New Jersey taxes HSA contributions. Its 2025 instructions exempt Archer MSA contributions only, and its return does not start from federal adjusted gross income. | 0% |
| New Mexico | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.9% |
| New York | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.9% |
| North Carolina | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 3.99% |
| North Dakota | Yes: the return starts from federal taxable income, which already reflects HSA contributions. | 1.95% |
| Ohio | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 2.75% |
| Oklahoma | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.5% |
| Oregon | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 8.75% |
| Pennsylvania | Yes. Allows HSA contributions that were deductible for federal purposes on Schedule O (PA-40 line 10). | 3.07% |
| Rhode Island | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.75% |
| South Carolina | Yes: for tax year 2026, South Carolina starts from federal adjusted gross income, which includes the federal HSA deduction, then applies its own SCIAD rather than the federal standard or itemized deduction (H. 4216, sections 2–3). | 5.21% |
| South Dakota | No tax on wages, so contributions save no state income tax (0%). | 0% |
| Tennessee | No tax on wages, so contributions save no state income tax (0%). | 0% |
| Texas | No tax on wages, so contributions save no state income tax (0%). | 0% |
| Utah | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.45% |
| Vermont | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 6.6% |
| Virginia | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.75% |
| Washington | No tax on wages, so contributions save no state income tax (0%). | 0% |
| West Virginia | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 4.58% |
| Wisconsin | Yes: the return starts from federal adjusted gross income, which already subtracts HSA contributions. | 5.3% |
| Wyoming | No tax on wages, so contributions save no state income tax (0%). | 0% |
States that start from federal adjusted gross income (Form 1040, line 11) or federal taxable income inherit the deduction taken on federal Schedule 1, line 13, unless they add it back; none of them does for tax year 2025. Employer contributions through payroll are excluded from wages the same way.
- Alabama: tax-year-2025 instructions
- Arizona: tax-year-2025 instructions
- Arkansas: tax-year-2025 instructions
- California: tax-year-2025 instructions
- Colorado: tax-year-2025 instructions
- Connecticut: tax-year-2025 instructions
- Delaware: tax-year-2025 instructions
- Georgia: tax-year-2025 instructions
- Hawaii: tax-year-2025 instructions
- Idaho: tax-year-2025 instructions
- Illinois: tax-year-2025 instructions
- Indiana: tax-year-2025 instructions
- Iowa: tax-year-2025 instructions
- Kansas: tax-year-2025 instructions
- Kentucky: tax-year-2025 instructions
- Louisiana: tax-year-2025 instructions
- Maine: tax-year-2025 instructions
- Maryland: tax-year-2025 instructions
- Massachusetts: tax-year-2025 instructions
- Michigan: tax-year-2025 instructions
- Minnesota: tax-year-2025 instructions
- Mississippi: tax-year-2025 instructions
- Missouri: tax-year-2025 instructions
- Montana: tax-year-2025 instructions
- Nebraska: tax-year-2025 instructions
- New Jersey: tax-year-2025 instructions
- New Mexico: tax-year-2025 instructions
- New York: tax-year-2025 instructions
- North Carolina: tax-year-2025 instructions
- North Dakota: tax-year-2025 instructions
- Ohio: tax-year-2025 instructions
- Oklahoma: tax-year-2025 instructions
- Oregon: tax-year-2025 instructions
- Pennsylvania: tax-year-2025 instructions
- Rhode Island: tax-year-2025 instructions
- South Carolina: 2026 H. 4216 (read 2026-10-17)
- Utah: tax-year-2025 instructions
- Vermont: tax-year-2025 instructions
- Virginia: tax-year-2025 instructions
- West Virginia: tax-year-2025 instructions
- Wisconsin: tax-year-2025 instructions
Frequently Asked Questions
Which states tax HSA contributions?
For tax year 2025, California and New Jersey: California adds the federal HSA deduction back on Schedule CA (540), and New Jersey has no HSA deduction or exclusion. The other 39 states with an income tax follow the federal deduction, and the nine states that do not tax wages have nothing to deduct.
How much does an HSA save in taxes?
Each dollar you contribute saves your federal bracket rate plus your state rate where the state follows the deduction, plus 7.65% FICA when you contribute through payroll. At 22% federal and 5% state, $4,000 a year going in through payroll saves about $1,386.