HSA Tax Benefits in Vermont (2026)
Vermont follows federal HSA tax treatment.
State Income Tax
3.35%–8.75%
HSA Deduction
Yes
Growth Tax-Free
Yes
How Vermont Treats HSAs
Vermont conforms to federal HSA tax treatment. Contributions are deductible, earnings grow tax-free, and qualified distributions for medical expenses are exempt from state income tax.
Vermont HSA FAQs
Are HSA contributions tax-deductible in Vermont?
Yes. Vermont follows federal HSA tax treatment, so contributions are deductible on your state income tax return.
What is the state income tax rate in Vermont?
Vermont's state income tax rate is 3.35%–8.75%.
Is HSA investment growth taxed in Vermont?
No. Vermont 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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