Frequently Asked Questions

What states treat Health Savings Accounts differently than the federal government?

The following states have indicated that legislation must be passed at the state level before Health Savings Accounts (HSAs) receive a tax benefit at the state level: California, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, Ohio, Washington DC, Wisconsin, West Virginia, and Tennessee. New Hampshire and Tennessee do not tax income, but do tax dividends and interest. Alabama has not indicated their position regarding state-level tax benefits for HSAs. The following states are not affected by federal income tax guidance vis-a -vis HSAs: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

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