HSA Tax Benefits in Massachusetts (2026)
Massachusetts follows federal HSA tax treatment.
State Income Tax
5% + 4% surtax on income >$1M
HSA Deduction
Yes
Growth Tax-Free
Yes
How Massachusetts Treats HSAs
Massachusetts conforms to federal HSA tax treatment. Contributions are deductible on your state return, earnings grow tax-free, and qualified medical expense withdrawals are exempt from state income tax.
Massachusetts HSA FAQs
Are HSA contributions tax-deductible in Massachusetts?
Yes. Massachusetts follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Massachusetts?
Massachusetts's state income tax rate is 5% + 4% surtax on income >$1M.
Is HSA investment growth taxed in Massachusetts?
No. Massachusetts 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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