In most cases, the answer is yes. A few states have different rules when it comes to taxing HSAs at the state level. Some states don’t treat HSAs as tax-deductible at the state level. So in those states your HSA contributions will be subject to state income tax and your HSA will be treated like a regular taxable brokerage account. Be sure to check the rules in your state to make sure you follow all tax and reporting regulations.
Please note: this is not intended to provide any tax or investment advice, please be sure to consult with a tax professional.
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