HSA Triple Tax Advantage Calculator

Anyone with a high-deductible health plan who's eligible for a Health Savings Account and wants to see why it's often called the most tax-advantaged account available. Used well, an HSA can double as a stealth retirement account.

First, contributions are tax-deductible, so every dollar you put in lowers this year's taxable income. Second, the money grows completely tax-free — no tax on interest, dividends, or gains. Third, withdrawals for qualified medical expenses are tax-free too.

No other account offers all three. A traditional 401(k) is taxed on withdrawal; a Roth is taxed on the way in. An HSA is untaxed at all three stages.

The calculator grows your annual contributions at your expected return with no tax (the HSA) and, for comparison, in a taxable account whose returns are reduced by tax each year. The gap between the two is the value of tax-free growth — and it compounds dramatically over long horizons.

It also shows the income tax you save up front by deducting contributions, both per year and over the whole period.

To keep it simple, the taxable comparison taxes returns annually at your marginal rate; a real brokerage account benefits from lower long-term capital-gains rates and tax deferral, so treat the advantage as an upper-ish estimate. The 2026 contribution limits shown are estimates pending verification. A few states tax HSAs. Not tax advice.