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Level 1
October 7, 2025
Solved

HSA useres in NJ

  • October 7, 2025
  • 2 replies
  • 73 views

My employer gives us an option and contributes to HSA if we choose it. However, I live and work in NJ for the company and from my research HSA users do not get the tax withholding benefit in NJ. Is there any way around it? I would love to take advantage of this tax break and my companies contribution to the fund.

thank you in advance

AG

 

Best answer by Bsch4477

No way around it. New Jersey doesn’t conform to federal tax law regarding HSA contributions. 

2 replies

Bsch4477Level 15Answer
Level 15
October 7, 2025

No way around it. New Jersey doesn’t conform to federal tax law regarding HSA contributions. 

Level 15
October 8, 2025

If you contribute via pre-tax payroll deduction, you still save the 12-22% federal income tax AND 7.65% social security and medicare tax on your contributions, and your employer contributions are still exempt from federal income tax even though you will pay state income tax.  It's still a pretty good deal.