HSA Tax Benefits in Michigan (2026)
Michigan follows federal HSA tax treatment.
State Income Tax
4.25%
HSA Deduction
Yes
Growth Tax-Free
Yes
How Michigan Treats HSAs
Michigan conforms to federal HSA tax rules. Contributions are deductible, investment growth is tax-free, and qualified withdrawals are exempt from state income tax.
Michigan HSA FAQs
Are HSA contributions tax-deductible in Michigan?
Yes. Michigan follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Michigan?
Michigan's state income tax rate is 4.25%.
Is HSA investment growth taxed in Michigan?
No. Michigan 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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