Question 1

What is West Virginia's state income tax rate for 2025?

Accepted Answer

West Virginia taxes personal income under a 5-bracket progressive structure for tax year 2025: 2.22%, 2.96%, 3.33%, 4.44%, and a top marginal rate of 4.82% at single-filer thresholds of $10,000 / $25,000 / $40,000 / $60,000, imposed by W. Va. Code §11-21-4e. The tax year 2025 rates reflect the additional 4% cut triggered by SB 2033 of the 2024 First Special Session on top of the 21.25% across-the-board cut enacted by HB 2526 of 2023 — the largest personal-income-tax cut in West Virginia history.

Question 2

Does West Virginia have a standard deduction?

Accepted Answer

No. West Virginia does not offer a state standard deduction. West Virginia begins its income-tax computation from federal AGI and allows a personal exemption of $2,000 per taxpayer and dependent under W. Va. Code §11-21-16 (increased to $8,000 per exemption for filers age 65 or older with federal AGI below $10,000). West Virginia does allow specific subtractions from federal AGI, including the Social Security modification, retirement income modifications, and a Senior Citizens Property Tax Credit.

Question 3

Does West Virginia tax Social Security and retirement income?

Accepted Answer

West Virginia is completing a phased Social Security exemption: for tax year 2025, 65% of Social Security benefits are exempt from state income tax for filers with federal AGI at or below $50,000 single / $100,000 MFJ, phasing to 100% exemption for tax year 2026 under HB 4880 of 2024. West Virginia also exempts the first $8,000 of retirement income per taxpayer age 65 or older under W. Va. Code §11-21-12 (private pensions, IRAs, 401(k)) and fully exempts West Virginia Public Employees Retirement System, Teachers Retirement System, State Police, and federal military and CSRS pensions.

Question 4

Do West Virginia cities charge a local income tax?

Accepted Answer

West Virginia does not have true municipal income taxes, but several West Virginia cities impose a Municipal Service Fee (commonly called a 'user fee' or 'city service fee') on individuals working within the city limits, typically $1 to $5 per week, authorized by W. Va. Code §8-13-13. Charleston, Huntington, Wheeling, Parkersburg, and Morgantown are among the cities that impose such fees. The fee is a flat weekly amount rather than a percentage of income and funds municipal services such as fire, police, and street maintenance.

Question 5

How is West Virginia's income tax rate expected to change?

Accepted Answer

West Virginia enacted a rate-reduction trigger under HB 2526 of 2023 (W. Va. Code §11-21-4g), the Personal Income Tax Reduction Fund mechanism: whenever general revenue collections exceed inflation-adjusted 2019 baseline collections by defined thresholds, the personal income tax rate is automatically reduced. The trigger has activated twice — HB 2526 itself (21.25% cut effective 1/1/2023) and SB 2033 of 2024 (additional 4% cut effective 1/1/2025). Governor Morrisey's 2025 policy statement targets full personal-income-tax elimination over the next decade if trigger conditions continue to be met, following the model of neighboring Tennessee and Florida but through a phased trigger rather than a single legislative act.

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