State tax rates and rules for income, sales, property, estate, and other taxes that impact retirees. Go to Retiree Tax Map West Virginia Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Mixed Tax Picture The Mountain State recently lowered taxes for most retirees. 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.) With regard to other retirement income, there are some exemptions for government pensions and a limited general income deduction for seniors.Sales taxes are reasonable in West Virginia. They're below average, but not by much.Property taxes are notably low. West Virginia's median property tax rate is the ninth-lowest in the U.S. The state also offers a few property tax breaks for qualifying seniors. 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. Taxation of Social Security Benefits In 2021, 65% of 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). Beginning in 2022, qualifying taxpayers can exclude all Social Security benefits. 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. Sales Tax 6% state levy. Municipalities can add up to 1% to that, with an average combined rate of 6.51%, according to the Tax Foundation.Groceries: ExemptClothing: TaxableMotor Vehicles: TaxablePrescription Drugs: Exempt Real Property Taxes In West Virginia, the median property tax rate is $571 per $100,000 of assessed home value. 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. Annual Car Taxes and Fees An annual vehicle property tax based on the car's value is imposed. Estate and Inheritance Taxes No estate or inheritance tax.