Personal income tax
West Virginia collects income taxes from its residents at the following rates (for single, head of household and married filing jointly taxpayers).
- 3 percent on the first $10,000 of taxable income.
- 4 percent on taxable income between $10,001 and $25,000.
- 4.5 percent on taxable income between $25,001 and $40,000.
- 6 percent on taxable income between $40,001 and $60,000.
- 6.5 percent on taxable income of $60,001 and above.
West Virginia tax returns are due on April 15 or the next business day if that date falls on a weekend or holiday.
Beginning with 2011 tax filings, a checkbox on the West Virginia individual return allows taxpayers filing an amended return to cancel their original delayed debit transaction. This will work, however, only if the amended return is filed before the debit transaction was scheduled or completed.
The consumer sales and service tax is based on monetary consideration which is the actual cost to the purchaser of tangible personal property or the purchase of a service. The seller of the goods or services is required to collect the tax from their purchasers and remit the tax to the State Tax Department.
The state-wide sales tax rate on most purchases is 6 percent. There are currently no municipal sales taxes in West Virginia.
The use tax is a companion tax to the consumers sales and service tax and is based on the purchase price of tangible personal property or taxable services. This tax is required to be paid by individuals or businesses directly to the State Tax Department on tangible personal property or services purchased for which the West Virginia sales tax has not been paid. The state-wide use tax rate is 6 percent.
West Virginia's sales and use tax on food and food ingredients is being phased out. Effective Jan. 1, 2012, the tax rate was reduced from 3 percent to 2 percent. This rate reduction, notes the West Virginia State Tax Department, does not apply to food sold in a heated state, prepared food or food sold with eating utensils provided by the seller.
West Virginia's general consumer sales and service tax rate of 6 percent applies to the food items purchased at vending machines, as well as all soft drinks.
Details on West Virginia's sales tax system, including a list of exemptions, can be found on the Tax Department's website.
Personal and real property taxes
West Virginia counties administer and collect property taxes. West Virginia real and personal property tax records are managed by the County Assessor in each county. Municipalities may levy license and gross receipts taxes on businesses located within the city limits and a hotel occupancy tax on lodging places in the city.
Although the Department of Tax and Revenue plays a major role in the administration of this tax, less than one-half of one percent of the property tax collected goes to state government. The primary beneficiaries of the property tax are county boards of education.
Property taxes are paid to the sheriff of each of the state's 55 counties. Each county and municipality can impose its own rates of property taxation within the limits set by the West Virginia Constitution.
The West Virginia legislature sets the rate of tax of county boards of education. This rate is used by all county boards of education statewide. However, the total tax rate for county boards of education may differ from county to county due to excess levies.
The Department of Tax and Revenue supervises and otherwise assists counties and municipalities in their work of assessment and tax rate determination.
The total tax rate is a combination of the tax levies from four state taxing authorities: state, county, schools and municipal. This total tax rate varies for each of the four classes of property, which include personal, real and intangible properties.
Property is assessed according to its use, location and value as of July 1. All property is reappraised every three years; annual adjustments are made to assessments for property with a change of value.
West Virginia offers a homestead exemption to its citizens that are 65 years old or are permanently disabled.
Since 2008, West Virginia has offered a refundable personal income tax credit, up to $1,000, for real property taxes paid in excess of income.
Inheritance and estate taxes
West Virginia does not impose an inheritance tax.
Because of the phaseout of the federal estate tax credit, West Virginia's estate tax is not imposed on estates of persons who died in 2005 or thereafter.
Other West Virginia tax facts
Senior citizens eligible for the Homestead Exemption Program may be entitled to a refundable income tax credit.
West Virginia taxpayers can e-file their returns for free, as well as go online to check the status of their state income tax refunds.