HSA Tax Benefits in Washington (2026)
Washington has no state income tax. HSA funds are not subject to state tax.
State Income Tax
None
HSA Deduction
N/A (No Tax)
Growth Tax-Free
Yes
How Washington Treats HSAs
Washington does not levy a state income tax on earned income. HSA contributions, growth, and qualified withdrawals carry no state tax burden. Note: Washington does have a 7% capital gains tax on gains over $270K, but HSA investment gains are generally exempt. You receive full federal HSA tax benefits.
Washington HSA FAQs
Are HSA contributions tax-deductible in Washington?
Washington has no state income tax, so HSA contributions are inherently tax-free at the state level.
What is the state income tax rate in Washington?
Washington's state income tax rate is 0%. Since there's no income tax, HSA benefits are automatically maximized.
Is HSA investment growth taxed in Washington?
No. Washington 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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