What is wv income tax rate?

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West Virginia generates the bulk of its tax revenue by levying a personal income tax, a general sales tax and select sales taxes (otherwise known as excise taxes). The state derives its constitutional authority to tax from Article X of the state constitution.[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.[3]

West Virginia utilized a personal income tax rate ranging from 3 percent to 6.5 percent in 2017. An individual's tax liability varies according to his or her tax bracket. A tax bracket is the income range to which a tax rate applies.[4]

The table below summarizes personal income tax rates for West Virginia and neighboring states in 2017.[4]

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. [5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for West Virginia and its neighboring states as reported by the Tax Policy Center are reported in the chart below.[6]

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. [7][8][9]

The table below summarizes uppermost capital gains tax rates for West Virginia and neighboring states in 2015.

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

West Virginia's state sales tax was 6.00 percent in 2017. The average local tax was about 0.29 percent, meaning that the average combined sales tax was about 6.29 percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for West Virginia and its neighboring states.[10]

The table below summarizes sales tax rates for West Virginia and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).[11]

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in West Virginia and neighboring states.[12][13][14][15]

West Virginia levies a corporate income tax rate of 6.5 percent. The table below compares the corporate income tax rates of some of its neighboring states.[16][17]

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.[18][19][20] [18][19]

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in West Virginia and neighboring states.[18]

The table below lists per capita state and local property tax collections for West Virginia and neighboring states for fiscal year 2013.[21]

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.[22][23][24]

West Virginia does not levy an estate tax, although residents are liable for the federal estate tax. The table below summarizes the estate tax rates for West Virginia and neighboring states in 2016.[24]

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 50.1 percent of West Virginia's total state tax collections came from sales taxes and gross receipts.[25]

Ballotpedia has tracked the following ballot measures relating to taxes in West Virginia.

The link below is to the most recent stories in a Google news search for the terms West Virginia taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

How does West Virginia's tax code compare? West Virginia has a graduated individual income tax, with rates ranging from 3.00 percent to 6.50 percent. There are also jurisdictions that collect local income taxes. West Virginia has a flat 6.50 percent corporate income tax rate and permits local gross receipts taxes.

The state of West Virginia has both a state sales tax and a state income tax, along with some of the lowest property taxes in the U.S. The income tax system here consists of five brackets, with rates from 3% to 6.5%. The sales tax is 6% statewide, with a handful of cities collecting additional local taxes of 1%. West Virginian homeowners, meanwhile, pay an average effective property tax rate of just 0.55%, the ninth-lowest rate in the country.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Taxpayers in West Virginia must pay federal and state income taxes. The state income tax has a similar structure to the federal tax, albeit with fewer brackets and significantly lower rates. The table below shows the rates and brackets for all filing statuses in West Virginia.

To determine your taxes due, apply the above rates to your West Virginia taxable income, which is derived from your federal adjusted gross income (AGI). To calculate it, you first make a number of additions and subtractions, which are listed on West Virginia schedule M.

Possible modifications include subtractions for retirement benefits from the West Virginia Teachers’ Retirement System or Public Employees’ Retirement System; contributions to the West Virginia Prepaid Tuition/Savings Plan Trust Funds; active duty military pay; a subtraction of $8,000 for persons who are over 65 or disabled; and between $25 and $1,200 for the West Virginia “EZ PASS” deduction.

After all modifications have been made to AGI, you can subtract the West Virginia Earned Income Exclusion (if applicable) and all exemptions to arrive at taxable income. The West Virginia exemption is $2,000 for each exemption claimed federally.

Although West Virginia taxes Social Security benefits, these taxes are on the way out, since beginning with the 2020 tax year. This phase-out was created to end in three years, with the 2020 lowering the tax by 35%, 2021 shrinking the tax by 65% and 2022 and going forward, removing it completely.

The West Virginia state sales tax rate is 6%. In addition to that state rate, a number of cities collect an extra local sales tax of 1%. The table below shows the state and local rates for the cities in West Virginia that collect a local sales tax.

Cities not shown in this table do not have a municipal tax and thus the total rate paid in those cities is 6%. There are no counties that charge additional sales tax beyond the 1%.

While the rates above apply to most retail sales and some services, there are quite a few exceptions. As of July 1, 2013, groceries are not taxed in West Virginia. Prescription drugs, newspapers, motor vehicles and textbooks are also exempt from sales tax. Exempt services include child care services, fitness clubs, personal services (hairstyling, massages, etc.) and professional services (doctors, lawyers, architects, etc.).

If you’re thinking about buying a home in West Virginia, there’s good news: The Mountain State has some of the lowest property taxes in the country. The average homeowner in West Virginia pays just $785 annually in property taxes. That’s the third-lowest median property tax payment in the U.S.

However, since West Virginia’s average home values are also relatively low, the state’s property tax rates rank slightly higher. The average effective property tax rate here is 0.55%, ninth-lowest in the country.

Our West Virginia mortgage guide can help make the process of getting a mortgage a bit easier by putting all the important information about getting a mortgage in West Virginia onto one convenient page. There’s also information for those looking to refinance a property in the state.

State fuel taxes in West Virginia rank toward the bottom when compared to all U.S. states. The tax on both gasoline and diesel is 35.70 cents per gallon.

West Virginia nearly doubled its cigarette tax in 2016. The rate has increased slightly since then and now sits at $1.20 for a pack of 20 cigarettes. That is still below average, though.

In West Virginia, the state government controls the sale of alcohol, which adds up to significant revenue for the state. All alcohol sold is subject to markups and an excise tax that varies depending on the type of alcohol.

For beer, the excise tax is low, at just 18 cents per gallon. However, the total tax on wine is $1 per gallon. Keep in mind that the general sales tax rates of 6% to 7% still applies on top of those excise taxes.

There is no estate tax in West Virginia. Up until 2005, there was an estate tax based on the federal estate tax. It has since been phased out. Estates and inheritances are no longer taxed at the state level in West Virginia. You may still need to pay the federal estate tax, though.

West Virginia is called The Mountain State and for good reason. Mountains and forest blanket nearly the entire area within its borders, from the Alleghenies that run along the state’s eastern border to the Ohio River Valley in the west. For retirees who love outdoor activities like kayaking, birding, fishing and hiking, West Virginia can be a great choice.

It isn’t just the state’s natural beauty that makes it a good retirement destination, however. The state is also very affordable, with a tax system that's friendly toward retirees. West Virginia has some of the lowest property taxes in the U.S., and sales taxes are fairly cheap.

As described below, Social Security benefits and other types of retirement income are taxed in West Virginia, but seniors can claim a deduction to offset them. That, combined with West Virginia’s low cost of living, means it can be possible for a retiree to live in the state on a relatively small annual income.

A financial advisor can help you plan for retirement and other financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

The state is tax-friendly, although how tax-friendly it is may depend on your level of income. For starters, West Virginia has very low property and sales taxes. Most of the Social Security retirement benefits that are taxed federally will also be taxed in West Virginia, at rates ranging from 3% to 6.5%.

Other types of retirement income are also taxable, but can be deducted up to $8,000 per person. Thus, if you have significant retirement income from, say, an IRA, your taxes in West Virginia may be quite high. On the other hand, if you rely mostly on Social Security income with only supplemental income from a pension or retirement account, your tax bill will be fairly low.

A certain percentage of the Social Security retirement benefits that are taxable on your federal tax return will also be taxable on your West Virginia state tax return. For tax year 2021, taxpayers could have excluded 65% of their federally taxed Social Security benefits on their state tax return if their federal AGI was below $50,000 (single filers) or $100,000 (joint filers). In 2022 and beyond, all Social Security benefits will be exempt from taxes in West Virginia.

Retirement income from a government pension, private employer pension, 401(k), IRA or any other type of retirement account is taxable. Seniors in West Virginia, meaning anyone 65 or older, can claim a deduction against that income. The deduction is $8,000 per person and applies across all forms of retirement income.

So if you have $4,000 annually in pension income and $4,000 in income from an IRA, you will not need to pay income taxes on that retirement income. Married couples can each claim this, for a total of $16,000 for joint filers. If the sum exceeds $8,000, however, you will pay tax on at the rates shown in the income tax table below.

There is an additional $2,000 deduction available to taxpayers with government pension income. There is no age limit for this deduction, but it only applies to income from a government pension.

West Virginia has some of the lowest property taxes of any U.S. state. The median property tax paid by homeowners in West Virginia is just $785 per year.

Part of the reason that property taxes due are so low is that tax rates and home values are generally quite low. The state’s average effective rate is 0.55%, and the median home value is less than $145,000. Those low costs can be a major help for seniors looking to move from another part of the country.

The West Virginia homestead exemption program helps to lower the property tax burden on seniors. It is available to anyone age 65 or older who owns and occupies their home and has paid taxes on that home for at least two consecutive years prior to applying for the exemption. Qualifying homeowners receive an exemption of $20,000 on the assessed value of the property.

West Virginia's sales tax rate is fairly low at 6%. A small number of cities also collect local rates ranging from 0.5% to 1%. The total rate in Charleston, the state capital, is 7%. West Virginia also has sales tax exemptions for groceries and prescription drugs.

West Virginia's income tax brackets were last changed eleven years prior to 2020 for tax year 2009, and the tax rates have not been changed since at least 2001.

West Virginia has five marginal tax brackets, ranging from 3% (the lowest West Virginia tax bracket) to 6.5% (the highest West Virginia tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket , which are the same in West Virginia for single filers and couples filing jointly.

The Federal Income Tax, by contrast, has different tax brackets for Single, Married Filing Jointly, and Head of Household taxpayers.

Technically, you don't have just one "tax bracket" - you pay all of the West Virginia marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your West Virginia tax bracket is the tax bracket in which your last earned dollar in any given tax period falls.

You can think of the bracketed income tax as a flat amount for all of the money you earned up to your highest tax bracket, plus a marginal percentage of any amount you earned over that. The chart below breaks down the West Virginia tax brackets using this model:

In addition to marginal tax brackets, one of the major features of the West Virginia income tax is deductions. The three most common deductions encountered by taxpayers are the West Virginia Standard Deduction, the West Virginia Personal Exemption, and the West Virginia Dependent Deduction. The current values of these deductions for tax year 2020 are as follows:

The standard deduction, which West Virginia does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.

The Personal Exemption, which is supported by the West Virginia income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support.

The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than West Virginia's and may have different rules.

Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.

Disclaimer: While we do our best to keep this list of West Virginia income tax rates up to date and complete, we cannot be held liable for errors or omissions. Is info on this page missing or out-of-date? Please let us know so we can fix it!

The West Virginia tax brackets on this page have been updated for tax year 2020, and are the latest brackets available. States often adjust their tax brackets on a yearly basis, so make sure to check back later for West Virginia's updated tax year 2021 tax brackets!