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West Virginia Tax Guide: Aggressively Declining Rates

Understand West Virginia's dramatic income tax reductions, sales tax, and property tax details for 2025.

~4.82%
Top Income Tax Rate
6.56%
Combined Sales Tax
0.57%
Property Tax Rate
#29
Tax Burden Rank

Tax Overview

West Virginia has embarked on one of the most aggressive income tax reduction programs in the country. The state has been cutting its progressive income tax rates significantly, with the top rate declining from 6.5% toward a target that could eventually reach zero. For 2025, rates have been substantially reduced across all brackets, with the top rate around 4.82%. The state is aiming for further cuts contingent on revenue performance.

Sales tax in West Virginia is 6% at the state level, with limited local additions in some municipalities. The combined rate stays around 6%-7% in most areas. West Virginia recently exempted certain essential items from sales tax, including some personal hygiene products. Groceries are exempt from state sales tax, though prepared food remains taxable.

Property taxes in West Virginia are very low, with effective rates around 0.57%. The state assesses property at 60% of appraised value and applies different class rates. West Virginia offers a homestead exemption for residents age 65 and older or permanently disabled, which exempts the first $20,000 of assessed value from property taxes. The combination of declining income taxes and low property taxes makes West Virginia increasingly competitive.

Income Tax

West Virginia has been aggressively cutting income tax rates, with the top rate declining from 6.5% toward potential elimination. Rates shown are approximate for 2025.

Income RangeTax Rate
$0 – $10,0002.36%
$10,001 – $25,0003.15%
$25,001 – $40,0003.54%
$40,001 – $60,0004.72%
$60,001 +4.82%

Sales Tax

State Rate6.00%
Avg. Local Rate0.56%
Combined Rate6.56%

Property Tax

Effective Rate0.57%
Median Annual Bill$665

Key Deductions in West Virginia

  • ✓West Virginia standard deduction matching federal amounts
  • ✓Social Security income exemption
  • ✓Homestead exemption for seniors/disabled ($20,000 assessed value)
  • ✓Low-income family tax credit
  • ✓Military retirement income exemption
  • ✓West Virginia 529 plan contribution deduction (full amount)

Filing Information

Filing Deadline: April 15

Tax Authority: West Virginia State Tax Department

Phone: (304) 558-3333

Website: https://tax.wv.gov

Frequently Asked Questions

Is West Virginia eliminating its income tax?
West Virginia has been aggressively reducing its income tax rates and has discussed eventual elimination. The top rate has already dropped from 6.5% significantly. Further reductions are contingent on revenue performance and legislative action.
Does West Virginia tax Social Security?
West Virginia has phased out its tax on Social Security benefits. Social Security income is now fully exempt from West Virginia state income tax.
Are groceries taxed in West Virginia?
No, West Virginia exempts most grocery food items from the 6% state sales tax. Prepared foods, restaurant meals, and certain other food items remain taxable.
How do West Virginia property taxes work?
West Virginia assesses property at 60% of appraised value and applies class rates. Effective rates average about 0.57%, among the lowest in the nation. A homestead exemption of $20,000 assessed value is available for residents 65+ or permanently disabled.

Neighboring State Guides

PennsylvaniaMarylandVirginiaKentuckyOhio

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