State Income Tax

Income Tax in West Virginia: Complete Guide 2026

Updated 2026-03-11

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Income Tax in West Virginia: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

West Virginia imposes a graduated individual income tax that has been undergoing significant rate reductions. The state legislature has enacted multi-year plans to reduce the top marginal rate from ~6.5% toward an eventual goal of elimination. For 2026, the projected top rate is approximately ~5.12% on taxable income above ~$60,000. West Virginia uses federal adjusted gross income as the starting point and provides a number of modifications and credits, including full exemption of Social Security benefits. There are no local income taxes in West Virginia.

West Virginia Income Tax Rates (2026)

All Filing Statuses

Taxable Income BracketMarginal Rate
$0 to ~$10,000~2.36%
~$10,001 to ~$25,000~3.15%
~$25,001 to ~$40,000~3.54%
~$40,001 to ~$60,000~4.72%
Over ~$60,000~5.12%

West Virginia uses the same bracket thresholds for all filing statuses.

How West Virginia Income Tax Works

Rate Reduction Schedule

West Virginia has enacted legislation to reduce income tax rates by approximately ~21.25% across all brackets as part of a phased reduction plan. The projected 2026 rates reflect these reductions. Future reductions are contingent on state revenue performance, and the legislature has expressed a goal of eventually eliminating the income tax entirely.

Federal AGI Starting Point

West Virginia begins with federal adjusted gross income and applies state-specific modifications. Common adjustments include:

  • Subtraction: Social Security benefits included in federal AGI
  • Subtraction: Interest from U.S. government obligations
  • Subtraction: West Virginia lottery winnings (subject to separate withholding)
  • Addition: Interest on out-of-state municipal bonds

Standard Deduction and Exemptions

  • Standard deduction: West Virginia does not offer a standard deduction. Instead, the state uses personal exemptions.
  • Personal exemption: ~$2,000 per person (taxpayer, spouse, dependents)
  • Itemized deductions: Not available in the traditional sense. West Virginia allows specific modifications to federal AGI rather than a parallel deduction system.

Key Exclusions

  • Social Security: Fully exempt from West Virginia income tax
  • Military retirement: Fully exempt
  • Pension income: Taxable as ordinary income; no general exclusion
  • Railroad retirement: Exempt
  • Seniors: Filers 65+ receive an additional ~$1,000 exemption per qualifying person

Tax Credits

  1. Low-income family tax credit: A credit that reduces liability for filers with lower incomes, structured as a percentage of the federal EITC
  2. Senior citizen credit: Available for qualifying filers 65+ with household income below a threshold
  3. Teacher classroom supply credit: Up to ~$200 for K-12 educators purchasing classroom supplies
  4. Historic preservation credit: ~10% of qualifying rehabilitation costs
  5. Neighborhood Investment Program credit: ~50% of contributions to approved community organizations

Who Must File in West Virginia

Filing is required if:

  • You are a West Virginia resident with gross income exceeding the filing threshold based on your number of exemptions
  • You are a part-year resident or nonresident with West Virginia-source income
  • You want to claim a refund of withholding or refundable credits

West Virginia uses Form IT-140 for all individual filers. The filing deadline is April 15.

Comparison to National Average

StateTop Income Tax RateStructure
West Virginia~5.12%Graduated (5 brackets)
Virginia~5.75%Graduated
Kentucky~4.0%Flat
Ohio~3.50% (top)Graduated
Pennsylvania~3.07%Flat
National average~4.60%Varies

West Virginia’s projected top rate of ~5.12% is slightly above the national average but competitive in the Appalachian region. Ongoing rate reductions are expected to bring the rate below ~5.0% in coming years.

Tips for Minimizing West Virginia Income Tax

  1. Verify Social Security exemption. All Social Security benefits are fully exempt. Ensure your preparer correctly subtracts these amounts from federal AGI.

  2. Claim all personal exemptions. At ~$2,000 per person, the exemption is the primary deduction mechanism since West Virginia has no standard deduction.

  3. Use the low-income family tax credit. If you qualify for the federal EITC, West Virginia’s credit can reduce your state liability meaningfully.

  4. Maximize retirement contributions. 401(k) and IRA contributions reduce your federal AGI, which flows through to your West Virginia return.

  5. Plan for rate reductions. If you have flexibility in timing income recognition, consider that West Virginia rates are scheduled to continue declining, making deferral potentially advantageous.

  6. Claim the senior citizen credit if eligible. Filers 65+ with qualifying household income should ensure they receive this additional credit.

  7. Explore the Neighborhood Investment Program credit. Contributions to approved community organizations generate a ~50% credit, providing both community benefit and tax savings.

Key Takeaways

  • West Virginia imposes a five-bracket graduated income tax with a projected top rate of ~5.12% for 2026, actively being reduced
  • Social Security and military retirement are fully exempt from state income tax
  • The state has no standard deduction; personal exemptions of ~$2,000 per person are the primary reduction
  • The legislature has a stated goal of eventually eliminating the income tax entirely
  • The low-income family tax credit provides relief for working families
  • No local income taxes are imposed in West Virginia

Next Steps