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Health Savings Account (HSA) in Maryland 2026

Calculate your health savings account (hsa) tax savings in Maryland. With Maryland's 5.75% top state tax rate, your combined savings are higher.

Maryland Tax Overview

State Income Tax
5.75%
progressive
Sales Tax
6%
avg combined: 6%
Property Tax Rate
1.05%
Median Income
$90,203

8 brackets. County taxes add 2.25-3.20%. Both estate AND inheritance tax. Low standard deduction.

Maryland Income Tax Brackets (Single)

2%
$0 - $1,000
3%
$1,000 - $2,000
4%
$2,000 - $3,000
4.75%
$3,000 - $100,000
Your bracket
5%
$100,000 - $125,000
5.25%
$125,000 - $150,000
5.5%
$150,000 - $250,000
5.75%
$250,000 +
$1,338
Est. Total Savings
$8,300
Max Deduction
Above-the-Line
Deduction Type
26.8%
Combined Tax Rate

Health Savings Account (HSA) Savings Calculator for Maryland

$
$

Federal Savings

$1,100

22% bracket

Maryland State

$238

4.75% rate

Total Savings

$1,338

26.8% combined

At a 26.8% combined tax rate in Maryland, every $1,000 in deductions saves you $268 in taxes.

Savings by Tax Bracket in Maryland

10%
$738
12%
$838
22%
$1,338
24%
$1,438
32%
$1,838
35%
$1,988
37%
$2,088

Includes 4.75% Maryland state tax on top of federal savings.

Eligibility Requirements

Individuals enrolled in high-deductible health plans

  • 1Must have HDHP coverage
  • 2Cannot be enrolled in Medicare
  • 3Contribution limits apply

Maryland residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.75%.

Common Mistakes to Avoid

  • !Contributing without HDHP
  • !Over-contributing
  • !Forgetting to claim the deduction on your Maryland state return (missing up to 5.75% additional savings)

Maryland Filing Tips

Total tax includes state and county. County tax adds significantly. Both estate and inheritance taxes apply. Low standard deduction makes itemizing worthwhile. Retirement income subtraction available for 65+.

Required Tax Forms

Form 8889Form 1040

File these forms with your federal tax return to claim the health savings account (hsa). Maryland may require additional state-specific forms.

Other Tax Deductions in Maryland

Medical and Dental Expenses Deduction

Healthcare

~$9,727
est. savings

HSA Contribution Deduction

Healthcare

~$4,256
est. savings

HSA Contributions

Healthcare

~$1,094
est. savings

Long-Term Care Insurance Premiums

Healthcare

~$3,040
est. savings

Self-Employed Health Insurance

Healthcare

~$9,727
est. savings

Medical and Dental Expenses

Healthcare

~$6,080
est. savings

Archer Medical Savings Account

Healthcare

~$3,040
est. savings

Mortgage Interest Deduction

Housing

~$4,256
est. savings

Health Savings Account (HSA) in Neighboring States

Pennsylvania

3.07% top rate (flat)

~$5,128
+3,790 vs Maryland

Delaware

6.6% top rate (progressive)

~$5,850
+4,512 vs Maryland

Virginia

5.75% top rate (progressive)

~$5,676
+4,338 vs Maryland

West Virginia

5.12% top rate (progressive)

~$5,547
+4,209 vs Maryland

District of Columbia

10.75% top rate (progressive)

~$6,699
+5,361 vs Maryland

Tax Calculators for Maryland Cities

BaltimoreColumbiaGermantownSilver SpringFrederickWaldorfEllicott CityGlen BurnieRockvilleBethesda

Calculate Your Full Tax Savings in Maryland

Use our free tax calculators to optimize your entire tax return for Maryland.

Income Tax CalculatorMaryland Income TaxFull Health Savings Account (HSA) Guide

Frequently Asked Questions

How much can I save with the Health Savings Account (HSA) in Maryland?

In Maryland, the health savings account (hsa) can save you an estimated $1,338 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $238 in Maryland state tax savings at the 4.75% marginal rate. The national average savings is $4,500/year.

What is the Maryland state income tax rate?

Maryland has a progressive income tax system with a top rate of 5.75%. 8 brackets. County taxes add 2.25-3.20%. Both estate AND inheritance tax. Low standard deduction.

Who qualifies for the Health Savings Account (HSA) in Maryland?

Individuals enrolled in high-deductible health plans. The eligibility requirements are the same whether you live in Maryland or another state, as this is a federal tax deduction. However, your total savings will vary based on Maryland's 5.75% top state tax rate.

What tax forms do I need to claim the Health Savings Account (HSA) in Maryland?

To claim the health savings account (hsa), you need to file Form 8889 and Form 1040 with your federal return. Maryland residents should also check if the state allows this deduction on their state return for additional savings of up to 5.75%. Filing status affects your deduction limits and tax bracket.

Is the Health Savings Account (HSA) better in Maryland than in states without income tax?

Yes, Maryland residents benefit more because the state's 5.75% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.8% means more savings per dollar deducted.

What is the standard deduction in Maryland for 2026?

Maryland's standard deduction is $2,550 for single filers and $5,150 for married filing jointly. Total tax includes state and county. County tax adds significantly. Both estate and inheritance taxes apply. Low standard deduction makes itemizing worthwhile. Retirement income subtraction available for 65+.

Related Calculators

Medical and Dental Expenses Deduction in Maryland

Avg savings: $8,000/year

HSA Contribution Deduction in Maryland

Avg savings: $3,500/year

HSA Contributions in Maryland

Avg savings: $900/year

Long-Term Care Insurance Premiums in Maryland

Avg savings: $2,500/year

Self-Employed Health Insurance in Maryland

Avg savings: $8,000/year

Medical and Dental Expenses in Maryland

Avg savings: $5,000/year