Taxes in West Virginia
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Overall, the tax picture in West Virginia favors retirees, especially considering recent tax reforms. Below, we explain various West Virginia state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
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West Virginia Tax Rates
|State Sales Tax||6%|
|Avg State/Local Sales Tax||6.55%|
|Gas Tax||$0.37 per gallon|
|Diesel Tax||$0.37 per gallon|
|Cigarette Tax||$1.20 per pack|
|Effective Tax Rate:||6.15%|
|Social Security Tax||None|
|Federal Income Tax Deduction:||None|
West Virginia State Taxes Explained
West Virginia Sales Tax
6%. Prescription drugs and groceries are exempt. County and local taxes may increase the total rate by up to 1%.
West Virginia Income Taxes
Top tax rate of 6.5% (on income over $60,000). Municipalities can also impose city service fees on people working in the city.
West Virginia Property Taxes
Property tax rates across West Virginia depend on levies from county boards of education, county commissions, local municipalities and the state. The average effective property tax rate is 0.58% or $698 on the $119,600 median home value.
West Virginia offers a $20,000 exemption to citizens age 65 or older. Applicants must live in an owner-occupied residential property or individuals who are permanently and totally disabled. The home’s assessed must be more than $20,000 and federal adjusted gross income less than 150% of federal poverty guidelines.
West Virginia’s Homestead Excess Property Tax Credit provides a refundable credit of up to $1,000 if property taxes are more than 4% of annual gross income. Gross income includes Social Security benefits. This credit is available to low-income taxpayers with a federally adjusted gross income of 300% or less of the federal poverty guidelines. You need not be eligible for the homestead exemption to qualify for this credit.
For more information, see state’s property tax information page.
West Virginia Retirement Taxes
You can exclude all Social Security benefits beginning in 2022.
As of the tax year 2019, all military retirement income from the regular armed forces, reserves and National Guard is exempt from WV income tax. The exemption also applies to other uniformed services, such as the United States Public Health Service Commissioned Corps and the National Oceanic and Atmospheric Administration Commissioned Officer Corps.
Seniors age 60 and older are eligible for the Golden Mountaineer Card that can be used for pharmaceutical and other medical discounts.
West Virginia Estate and Inheritance Taxes
There is no inheritance tax in West Virginia, and the estate tax is limited and related to federal estate tax collection.
For further information, visit the West Virginia State Tax Department.