HSA Tax Benefits in Arizona (2026)
Arizona follows federal HSA tax treatment. Full state tax deduction for contributions.
State Income Tax
2.5%
HSA Deduction
Yes
Growth Tax-Free
Yes
How Arizona Treats HSAs
Arizona conforms to federal HSA tax treatment. Your HSA contributions are deductible on your Arizona state return, earnings grow tax-free, and qualified distributions are not subject to state income tax.
Arizona HSA FAQs
Are HSA contributions tax-deductible in Arizona?
Yes. Arizona follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Arizona?
Arizona's state income tax rate is 2.5%.
Is HSA investment growth taxed in Arizona?
No. Arizona 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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