Tax in West Virginia: a complete guide
If you are wondering about your tax burden in West Virginia, this article will take you through what you need to know, including how much sales tax you’ll pay and how much of your retirement income will be taxed.
West Virginia state income tax
West Virginia has a graduated state income tax ranging from three percent on taxable income under $10,000 to 6.5 percent on income over $60,000.
On March 7, 2023, the Governor of West Virginia signed a law reducing the income tax in tax year 2023 by an average of 21.25 percent. This is part of a wider proposal to reduce personal income tax across all brackets over three years. This “West Virginia tsunami,” as it is being called, is a step towards removing personal income tax in the state entirely.
For the 2023 tax year, the tables below show the various tax rates, as detailed by the West Virginia tax division:
For individuals (except married individuals filing separate returns), individuals filing joint returns, heads of households, and estates and trusts, the following rates apply:
| Taxable amount | Tax rate |
|---|---|
| $0 – $1 million | 10 percent |
| $1 million – $2 million | 14 percent |
| $2 million - $3 million | 15 percent |
| $3 million - $4 million | 16 percent |
| $4 million - $6 million | 18 percent |
| $6 million - $ 7 million | 19 percent |
| $7 million - $9 million | 19.5 percent |
| $9 million and over | 20 percent |
For married individuals filing separate returns:
| If the WV Taxable Income is: | The tax is: |
|---|---|
| Not over $10,000 | 2.36% of taxable income |
| Over $10,000 but not over $25,000 | $236 plus 3.15% of the excess over $10,000 |
| Over $25,000 but not over $40,000 | $708.50 plus 3.54% of excess over $25,000 |
| Over $40,000 but not over $60,000 | $1,239.50 plus 4.72% of excess over $40,000 |
| Over $60,000 | $2,183.50 plus 5.12% of excess over $60,000 |
West Virginia has a flat 6.50 percent corporate income tax rate and permits local gross receipts taxes.
If you’re unsure about filing your taxes, a financial advisor can help. Here, they can review your income sources and develop a unique tax strategy just for you.
West Virginia Sales Tax
West Virginia State has a state sales tax rate of 6 percent.
Like other states, local government can add their own sales tax on top of the state rate. This can bring the combined sales tax rate to as high as seven percent.
Certain items are exempt from sales tax, this includes:
Prescription drugs, durable medical goods, and mobility-enhancing equipment
Newspapers
Lottery tickets
Personal services, including barbering, hairstyling, and manicuring
West Virginia holds an annual sales tax holiday. This takes place each year on the Friday before the first Sunday in August and ends the following Monday. During this time, the following items are exempt from Sales and Use tax:
Certain clothing with a purchase price of $125 or less
Certain laptop and tablet computers with a purchase price of $500 or less and
Certain school instruction materials with a purchase price of $20 or less
Certain school supplies with a purchase price of $50 or less
Certain sports equipment with a purchase price of $150 or less
West Virginia Property Tax
In West Virginia, property taxes are levied by county boards of education, county commissions, municipalities, and the State.
According to the West Virginia Tax Division, the maximum property tax regular levy rates can not exceed the following amounts:
| Taxing Authority | Class I | Class II | Class III | Class IV |
|---|---|---|---|---|
| State | 0.25 | 0.5 | 1 | 1 |
| County | 14.3 | 28.6 | 57.2 | 57.2 |
| Schools | 22.95 | 45.9 | 91.8 | 91.8 |
| Municipal | 12.5 | 25 | 50 | |
| 50 | 100 | 150 | 200 |
West Virginia Motor Tax
West Virginia residents must pay a six percent sales tax rate for Auto.
Vehicle owners should also be aware of fuel taxes in the state. Regular gas is taxed at $0.37 per gallon, and diesel is taxed at $0.37 per gallon.
West Virginia Estate Tax
West Virginia does not impose inheritance or estate taxes.
However, it’s important to remember federal estate tax can still apply if your estate is above a certain threshold ($12.92 million in 2023); otherwise, there will be no fees on the estate or inheritance you leave behind.
Also, if you live in West Virginia but inherit an estate from someone living in a state with estate tax, you must abide by local regulations.
West Virginia Retirement Tax
Retirement income is partially taxed in West Virginia.
Income from Social Security is tax-exempt. This is a relatively new change, as the state started to phase out the tax on Social Security in 2020, with it becoming eliminated entirely in 2022.
Income from pension and other retirement accounts, such as 401(k) and IRAs, are subject to state income tax.
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.