Full HSA Tax Benefits

HSA Tax Benefits in Maryland (2026)

Maryland follows federal HSA tax treatment with full state benefits.

State Income Tax

2%–5.75%

HSA Deduction

Yes

Growth Tax-Free

Yes

How Maryland Treats HSAs

Maryland conforms to federal HSA tax rules. Contributions are deductible on your state return, investment growth is tax-free, and qualified distributions are not subject to state income tax.

Maryland HSA FAQs

Are HSA contributions tax-deductible in Maryland?

Yes. Maryland follows federal HSA tax treatment, so contributions are deductible on your state income tax return.

What is the state income tax rate in Maryland?

Maryland's state income tax rate is 2%–5.75%.

Is HSA investment growth taxed in Maryland?

No. Maryland 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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