Navigating state taxes can be daunting, but understanding West Virginia's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of the Mountain State's tax system, from income and sales taxes to property taxes and retirement benefits.
West Virginia state tax: Overview
West Virginia keeps things pretty reasonable when it comes to taxes. The sales tax rate is around average, and there are no inheritance taxes, which is good news for your heirs.
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The state has also made some retiree-friendly moves by cutting taxes on Social Security benefits, making West Virginia a more welcoming place for those looking to enjoy their retirement.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
West Virginia income tax
West Virginia has a graduated state individual income tax rate ranging from 2.36% to 5.12%, according to the Tax Foundation.
Note: Due to recent legislation, personal income tax rates in the Mountain State will be lowered by an additional 2% effective January 1, 2025.
As a result, all income tax rates will go down and the top marginal tax rate will go from 4.92% to 4.82% for the 2025 tax year.
West Virginia retirement taxes
West Virginia tax on retirement benefits: West Virginia used to tax Social Security benefits but began phasing out the tax last year. For more info on this, see New Social Security Tax Reforms Change Benefits in Two States.
Military pensions and Railroad Retirement benefits are tax-exempt. Income from federal and West Virginia state or local government retirement plans for police, sheriffs, and firefighters is fully exempt.
Specifically, the Mountain State will phase out its income tax on Social Security benefits over three years according to the following schedule.
- In 2024, 35% of Social Security benefits will be exempt from state income tax.
- In 2025, 65% of Social Security income will be exempt
- In 2026, 100% of Social Security benefits will be exempt from state income tax.
- Social Security: Partially taxable (to become state income tax-exempt in 2026)
- Pensions: Taxable (exclusions apply)
- 401(k) and IRA Distributions: Taxable
West Virginia sales tax
West Virginia's sales tax rate is 6%. Localities can add an additional tax of up to 0.57%, and the average combined tax rate is 6.57%, according to the Tax Foundation. West Virginia is one of the states that still tax diapers and menstrual products. However, other essentials are exempt from sales tax.
- Groceries: Exempt
- Prescription drugs: Exempt
- Clothing: Taxable
How much is property tax in West Virginia?
The property tax rate for West Virginia is 0.48%, according to the Tax Foundation.
West Virginia Property Tax Breaks for Retirees
People who are 65 years of age or older (or who have a total and permanent disability) are exempt from paying taxes on the first $20,000 of their home's assessed value. For example, if your property's tax assessed value is $200,000, you would only pay taxes on $180,000.
(Note: Additional property tax breaks, such as property tax credits, are offered to eligible homeowners. However, income requirements apply.)
West Virginia gas tax
Gasoline | $0.21 per gallon |
Diesel | $0.21 per gallon |
Source: Sales Tax Handbook
West Virginia alcohol and tobacco taxes
Product | Tax Amount |
Cigarettes | $1.20 per pack |
Other Tobacco Products | 7% of wholesale price |
Medical Marijuana | 10% |
Source: Sales Tax Handbook
Product | Tax Amount |
Wine | $1.00 per gallon |
Beer | $0.18 per gallon |
Liquor | state-controlled |
Source: Sales Tax Handbook
West Virginia estate and inheritance taxes
West Virginia doesn't have an estate or inheritance tax.
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