Bottom Line
Middle-Class Families: Mixed Tax Picture (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Mixed Tax Picture (Go to the Kiplinger Tax Map for Retirees)
Taxes in West Virginia are up and down, depending on the type of tax. For instance, depending on your financial situation, income taxes in the Mountain State can take a big bite out of your earnings. There's help for retirees, though. Starting in 2022, Social Security benefits taxed by the federal government are completely excluded from West Virginia's income tax for single taxpayers with federal adjusted gross income of $50,000 or less and joint filers with a federal AGI of $100,000 or less. (Previously, only 65% of Social Security benefits were exempt for seniors with income below those thresholds.)
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Sales taxes are reasonable in West Virginia. They're below average, but not by much. And West Virginia's property taxes are notably low. The state's median property tax rate is the 11th-lowest in the U.S.
West Virginia Income Taxes
West Virginia Income Tax Range
Low: 3% (on up to $10,000 of taxable income)
High: 6.5% (on taxable income of $60,000 or more)
West Virginia municipalities can also impose city service fees on people working in the city.
West Virginia Taxation of Social Security Benefits
Social Security benefits taxed by the federal government are excluded from taxable income for single taxpayers with federal adjusted gross income of $50,000 or less ($100,000 or less for joint filers).
West Virginia Tax Breaks for Other Retirement Income
Income from federal and West Virginia state or local government retirement plans for police, sheriffs and firefighters is fully exempt. Military pensions and Railroad Retirement benefits are also fully exempt.
In addition, up to $2,000 of federally-taxed income from federal government and designated West Virginia government retirement plans is exempt.
Taxpayers age 65 and older can deduct up to $8,000 of other income (not otherwise exempt). If married, each spouse can claim the deduction.
West Virginia Sales Tax
6% state levy. Municipalities can add up to 1% to that, with an average combined rate of 6.55%, according to the Tax Foundation.
- Groceries: Exempt
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
West Virginia Real Property Taxes
In West Virginia, the median property tax rate is $548 per $100,000 of assessed home value.
West Virginia Property Tax Breaks for Retirees
People who are 65 years of age or older (or disabled) are entitled to an exemption from property taxes on the first $20,000 of assessed value on their owner-occupied residence (e.g., if a home's assessed value is $100,000, it's taxed on the discounted value of $80,000).
If you still owe local property taxes after the application of the exemption, you may also be eligible for a senior citizen income tax credit. To qualify for the credit, you must participate in the homestead exemption program (see above), pay your property tax, and have an income less than 150% of federal poverty amount (which is partially based on the number of people in your household). The county determines the credit amount.
If your property taxes are more than 4% of your annual gross income, you could also qualify for a homestead excess property tax credit, which is equal to the amount of property tax that exceeds 4%. The credit cannot exceed $1,000. If you also qualify for the senior citizens tax credit, you must deduct that credit amount from property taxes paid when determining eligibility.
West Virginia Motor Fuel Taxes
Gasoline: 35.7¢ per gallon (37.2¢ per gallon effective January 1, 2023).
Diesel: 35.7¢ per gallon (37.2¢ per gallon effective January 1, 2023).
West Virginia Sin Taxes
Cigarettes: $1.20 per pack
Other tobacco products: 12% of the wholesale price
Vapor products: $0.08 per ml
Beer: $0.18 per gallon
Wine: $1 per gallon plus 5% local sales tax
Liquor: $7.62 per gallon (the liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation)
West Virginia Estate and Inheritance Taxes
No estate or inheritance tax.
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