West Virginia cut its top income tax from 6.5% to 5.12% — and is on a path toward further reductions using Iowa-style revenue triggers.
West Virginia's top income tax rate was 6.5% until recent years. A 2023 reform package cut rates across all brackets, with automatic triggers allowing further cuts if revenues hold. The state also fully exempted Social Security from income tax starting in 2024 — a major win for retirees. WV conforms to the federal standard deduction, and no WV city adds a local income tax.
West Virginia has historically been one of the poorer states economically, with income levels well below the national median. Coal, chemical manufacturing, and natural gas have been economic anchors — industries that have experienced structural declines over the past decade. The state's response has included aggressive tax reform designed to attract workers and businesses by competing on income tax rates with neighboring Virginia (5.75% top rate), Kentucky (4%), Maryland (5.75%), Ohio (3.75%), and Pennsylvania (3.07%). WV's 5.12% top rate is still the highest among its immediate neighbors, but the gap is closing.
Social Security is now fully exempt from WV income tax. This is one of the most significant changes WV has made for its aging population. Prior to 2022, Social Security was taxed as ordinary income. The state then phased out the tax: 35% exempt in 2022, 65% exempt in 2023, 100% exempt from 2024 onward. For a retiree collecting $25,000 per year in Social Security, this saves roughly $1,280 in West Virginia state income tax — meaningful money in a state with lower incomes and cost of living.
West Virginia conforms to the federal standard deduction. Unlike Arkansas ($2,200 single) or Oregon ($2,420 single), WV uses the federal standard deduction of $16,100 (single) / $32,200 (married). This means the starting point for WV income tax is the same as the federal starting point — a substantial benefit. A single worker earning $65,000 pays WV tax on only $48,900 of income after the standard deduction.
Morgantown (WVU), Charleston (capital), and Huntington are the state's major employment centers. Remote work has added a new dimension: WV has attracted remote workers from higher-cost-of-living areas (especially Northern Virginia/D.C.) who can maintain higher salaries while enjoying lower housing costs. A remote worker earning $120,000 in Morgantown pays WV income tax at about 5% effective rate while paying far less in housing than the same worker would in Fairfax County, Virginia — making the total financial picture competitive.
| Taxable Income | Rate |
|---|---|
| $0 – $10,000 | 2.36% |
| $10,001 – $25,000 | 3.15% |
| $25,001 – $40,000 | 3.54% |
| $40,001 – $60,000 | 4.72% |
| Over $60,000 | 5.12% |
WV uses the same brackets for single and married filers. Standard deduction: $16,100 (single) / $32,200 (married) — WV conforms to federal. Social Security income is fully exempt (2024+).
Estimates only. WV brackets 2.36%–5.12% on federal-conforming taxable income. Social Security exempt (not reflected here as this calculator uses wage income only). Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| West Virginia State Tax (2.36%–5.12%) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
West Virginia has five progressive brackets: 2.36% on the first $10,000, 3.15% from $10,001–$25,000, 3.54% from $25,001–$40,000, 4.72% from $40,001–$60,000, and 5.12% above $60,000. WV conforms to the federal standard deduction ($16,100 single / $32,200 married). These rates are significantly lower than WV's prior top rate of 6.5% and are expected to continue declining.
No. West Virginia fully exempted Social Security income from state income tax starting in 2024. This followed a two-year phaseout: 35% exempt in 2022, 65% exempt in 2023, then 100% from 2024 forward. WV retirees collecting Social Security owe no WV income tax on those benefits regardless of income level.
Yes — the 2023 reform law includes automatic revenue triggers that reduce rates further when state revenues exceed specified thresholds. West Virginia's approach mirrors what Iowa did: commit to declining rates tied to fiscal performance rather than setting a hard endpoint date. Watch for WV Tax Division announcements for any rate changes beyond 2026.
Virginia's top rate is 5.75% — higher than WV's 5.12%. Pennsylvania has a flat 3.07% — lower than WV at higher incomes. Kentucky is at 4% flat — lower than WV. Ohio's top rate is 3.75%. WV is still the highest-taxed state among its immediate neighbors, but the gap has narrowed significantly from when WV was at 6.5%. For border-area workers, the neighboring state options are generally better on income tax.
On $60,000 (single, biweekly), WV withholds approximately $105–$115 per paycheck in state income tax — roughly $2,700–$3,000 annually. The effective rate is about 4.5–5% on gross pay because after the $16,100 standard deduction, taxable income is $43,900, with most of it in the 3.54%–4.72% brackets. On $100,000, the effective WV rate rises to about 4.7–5%.
No. Charleston, Huntington, Morgantown, Parkersburg, Wheeling, and every other West Virginia city do not levy local income taxes on wages. WV workers pay only the state income tax with no municipal surcharge.
West Virginia's economy has historically centered on coal mining, natural gas extraction, chemical manufacturing (the Kanawha Valley "Chemical Valley" near Charleston), and healthcare. WVU (Morgantown) is a major employer. Remote work has become increasingly important — WV has actively marketed itself to remote workers from higher-cost states, offering lower housing costs while remaining driveable from D.C., Pittsburgh, and Columbus.
Yes. WV taxes overtime and tips at regular state income tax rates (up to 5.12%). The One Big Beautiful Bill's tip and overtime exemptions are federal-only — West Virginia has not enacted state equivalents. See our Overtime Tax Calculator for the federal portion of the savings.