West Virginia Tax: Guide to Income, Sales, Property, and Retirement Taxes

West Virginia flag waving in the wind — (Image credit: Getty Images)

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

capitol buidling in West Virginia during fall

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 were exempt from state income tax.
In 2025, 65% of Social Security income were 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

rendering of a yellow car against a yellow background

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Gasoline	$0.21 per gallon
Diesel	$0.21 per gallon

Source: Sales Tax Handbook

West Virginia alcohol and tobacco taxes

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West Virginia tobacco taxes
Product	Tax Amount
Cigarettes	$1.20 per pack
Other Tobacco Products	7% of wholesale price
Medical Marijuana	10%

Source: Sales Tax Handbook

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West Virginia alcohol taxes
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.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.