HSAs help you save money on taxes in three ways. First, money put into a personal HSA after taxes may be tax-deductible on your federal income tax return. If your employer offers an HSA, you can make payroll contributions before taxes are taken out. This type of contribution saves you more on taxes than tax-deductible contributions made after taxes have been taken out. Second, there are no federal income taxes to pay when you use your HSA money for qualified medical expenses. Third, you don’t have to pay taxes on any growth if you invest any or all of your HSA money.