West Virginia Tax Guide 2026

Personal income tax — the 2023+ phase-down

HB 2526 of 2023 (signed by Gov. Justice, March 2023) implemented an across-the-board 21.25% RATE CUT effective tax year 2023, reducing the prior 6.5% top rate to 5.12%. Plus trigger-based further reductions tied to General Fund surplus performance. Rate trajectory: • 2022 (pre-reform): 3.0% / 4.0% / 4.5% / 6.0% / 6.5% (5 brackets, top on income > $60k) • 2023: 2.36% / 3.15% / 3.54% / 4.72% / 5.12% (21.25% cut) • 2024: same as 2023 (no trigger reduction) • 2025: same • 2026: 5.12% reduced to 4.82% (HB 2014 of 2024 implemented additional 5.9% reduction) Future triggers: if WV General Fund revenue exceeds a baseline by certain percentages, additional 10% rate cuts are triggered (long-term direction toward elimination or substantial further reduction). Standard deduction: WV doesn't use a standard deduction concept — instead, uses personal exemptions ($2,000 per taxpayer/dependent under W. Va. Code §11-21-16) and a low-income tax credit. Low-Income Earned Income Exclusion (§11-21-12c): up to $8,000 of earned income for filers with federal AGI ≤ $10,000 — effective zero bracket for working poor. No state QBI deduction. No state AMT.

Social Security and retirement

WV historically taxed Social Security at full ordinary rates. HB 2026 of 2019 began phasing out SS tax with an income test. HB 2493 of 2024 (signed by Gov. Justice) ACCELERATED full phase-out to TAX YEAR 2026: • 2023: 35% of SS excluded for filers with federal AGI ≤ $50k single / $100k MFJ • 2024: 65% excluded (same income test) • 2025: 100% excluded for filers ≤ $50k single / $100k MFJ; partial above • 2026: 100% EXEMPT for ALL filers regardless of income — full phase-out complete Military retirement: $22,000 exclusion (full exemption for first $22,000; remainder taxed). Federal civil service annuity: $2,000 exclusion (for federal civil-service pension recipients). WV public employee/teacher pension: $8,000 exclusion. The 2026 SS exemption removes a major retiree-tax-friction point and aligns WV with most other states.

Sales tax

State rate 6% (W. Va. Code §11-15-3). Cities can impose up to 1% municipal sales tax — combined averages 6.55%. Notable cities: • Charleston: 7.0% • Huntington: 7.0% • Morgantown: 7.0% • Wheeling: 7.0% • Parkersburg: 7.0% Groceries: EXEMPT. Prescription drugs: exempt. Clothing: TAXABLE. Most services: exempt. Economic nexus (W. Va. Code §11-15A-6a): $100,000 in cumulative sales OR 200 transactions. WV recently expanded sales tax to certain previously-untaxed services (digital products, streaming, some online services) — though many traditional services remain exempt.

Property tax — among the lowest

Statewide average effective ~0.58% — among the lowest in the US (only HI, AL, CO, WY, LA, SC, UT, NV, DE are reliably lower). Counties: Kanawha (Charleston): ~0.59%, Cabell (Huntington): ~0.62%, Monongalia (Morgantown): ~0.60%, Berkeley (Eastern Panhandle): ~0.56%, Ohio (Wheeling): ~0.66%. WV uses fractional assessment: 60% of fair market value for residential and most other property. Homestead Exemption (W. Va. Code §11-6B-3): $20,000 reduction in assessed value for taxpayers 65+ or permanently disabled (no income test) — meaningful on modest-value homes. WV has Class I, II, III, IV property tax classifications with different millage levies. Class II (owner-occupied residential) has the most favorable treatment. No personal property tax on most household goods. WV historically taxed business inventory and equipment as personal property — Amendment 2 (2022 ballot) failed; personal property tax on business equipment remains in place (though political pressure for repeal continues). Vehicles: assessed annually as personal property and taxed by counties — separate from registration fees. WV is one of relatively few states still imposing meaningful annual property tax on vehicles.

Business considerations

Corporate income tax: 6.5% flat (W. Va. Code §11-24-4). Business Franchise Tax: REPEALED effective 2015 — no franchise tax on corporations/LLCs. LLC fee: $25 annual report (W. Va. Code §31B-2-211). Apportionment: single-sales factor for most industries (post-2009 reform). PTET: WV enacted PTET via SB 151 of 2023 — entity-level election at top individual rate (4.82% in 2026); refundable credit to owners. Unemployment tax: 1.5%–8.5% on $9,000 wage base. SEVERANCE TAX (W. Va. Code §11-13A): WV imposes severance tax on coal, oil, natural gas, and timber extraction — 5% of gross value for most resources. WV's severance tax revenue funds a meaningful portion of state operations, mitigating reliance on income/sales tax. No estate, inheritance, or gift tax (WV has not had estate tax since 2005). The combination of: declining income tax (4.82% top, going lower), 100% SS exemption (2026), low property tax (0.58%), modest sales tax (6.55% avg), no estate tax, and severance-tax-supported state finances make WV increasingly competitive for retirees and small business owners, particularly compared to neighboring Maryland (5.75% top + locals to 3.2%), Pennsylvania (3.07% but with local), and Virginia (5.75% top).

Worked example: Walter Atkins, Charleston-area retiree (single, age 70, 2026)

Walter receives $26,000 Social Security, $32,000 from a state teachers' pension (he was a WV teacher), $18,000 of Traditional IRA distributions. Owns a $215,000 South Charleston home (homestead).

Federal: SS partially taxable, pension/IRA fully ordinary. West Virginia: Social Security: 100% EXEMPT (2026 full phase-out) Teachers' pension: $8,000 WV public employee/teacher exclusion → $24,000 taxable IRA: fully taxable WV gross taxable: $24,000 + $18,000 = $42,000 Less personal exemption: $2,000 WV taxable: $40,000 Tax (2026 brackets): First $10,000 × 2.36% = $236 Next $15,000 × 3.15% = $473 Next $15,000 × 3.54% = $531 Total: $1,240 Property tax on $215k South Charleston home: Assessed at 60% × $215,000 = $129,000 Less $20,000 homestead exemption (age 65+) → $109,000 net × ~0.95% effective millage = ~$1,035/yr WV total annual state burden: $1,240 income tax + $1,035 property = $2,275 — among the lowest retiree burdens in the US. For comparison, the same scenario in Maryland (5.75% + 3.2% local) would generate ~$3,500 income tax; in Virginia, ~$2,200; in PA, ~$0 (PA exempts SS and most retirement income).

Statute references

• Personal income tax (5-bracket, top 4.82%) — W. Va. Code §11-21-4e (HB 2526 of 2023 + HB 2014 of 2024)
• Social Security 100% exemption (2026) — HB 2493 of 2024
• Personal exemption $2,000 — W. Va. Code §11-21-16
• Low-Income Earned Income Exclusion — W. Va. Code §11-21-12c
• Sales tax 6% — W. Va. Code §11-15-3
• Economic nexus (Wayfair) — W. Va. Code §11-15A-6a
• Homestead Exemption (age 65+/disabled) — W. Va. Code §11-6B-3
• Corporate income tax 6.5% — W. Va. Code §11-24-4
• PTET election — W. Va. SB 151 of 2023
• Severance Tax — W. Va. Code §11-13A

Related pages

• State Tax Comparison →
• Retirement Planner →
• Multi-State Allocation →