HSA Tax Benefits in Kentucky (2026)
Kentucky follows federal HSA tax treatment.
State Income Tax
4%
HSA Deduction
Yes
Growth Tax-Free
Yes
How Kentucky Treats HSAs
Kentucky conforms to federal HSA tax treatment. Contributions are deductible, earnings grow tax-free, and qualified distributions are exempt from state income tax.
Kentucky HSA FAQs
Are HSA contributions tax-deductible in Kentucky?
Yes. Kentucky follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Kentucky?
Kentucky's state income tax rate is 4%.
Is HSA investment growth taxed in Kentucky?
No. Kentucky 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.
More HSA Resources
Track your HSA expenses in Kentucky
Know exactly what you can reimburse tax-free. HSA Tracker makes it easy to organize medical receipts and maximize your savings.
Get Started Free