HSA Tax Benefits in New York (2026)
New York follows federal HSA tax treatment with full state deduction.
State Income Tax
4%–10.9%
HSA Deduction
Yes
Growth Tax-Free
Yes
How New York Treats HSAs
New York conforms to federal HSA tax treatment. Contributions are deductible on your New York state return, investment earnings grow tax-free, and qualified medical expense withdrawals are not subject to state income tax. NYC residents also benefit from the HSA deduction on their city income tax.
New York HSA FAQs
Are HSA contributions tax-deductible in New York?
Yes. New York follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in New York?
New York's state income tax rate is 4%–10.9%.
Is HSA investment growth taxed in New York?
No. New York 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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