West VirginiaWest Virginia sets income tax rates and ties future cuts to revenue
West Virginia taxpayers pay rates of 2.11% to 4.58% starting with 2026 tax years, with future cuts tied to state revenue.
What it does
West Virginia applies income tax rates from 2.11% to 4.58% for tax years beginning on or after January 1, 2026. Higher rates apply to higher portions of taxable income.
A 4.58% rate applies to specified group returns for nonresidents and tax withholding, including nonresident real estate sales and lottery winnings, starting with 2026 tax years.
Future income tax cuts depend on counted state revenue exceeding a baseline adjusted for inflation. A qualifying cut starts in the second tax year following the annual check.
Argument forTaxpayers could keep more income when state revenue exceeds the baseline, while the revenue test limits when future cuts take effect.
Argument againstFuture cuts could leave less money for state services because the trigger relies on past collections rather than future spending needs.
More detail
West Virginia applies five tax rates, from 2.11% to 4.58%, to different portions of taxable income. The schedule covers individuals, married couples, estates, and trusts, except the exempt trusts described below. Married people filing separately use income brackets half as large as those for other filers. Non-grantor trusts administered by licensed private trust companies are exempt. The lowest rate covers the first $10,000 of taxable income for most filers, or the first $5,000 for married people filing separately.
The law sets a 4.58% rate for specified group tax returns and taxes withheld from specified payments. Covered categories include group returns for nonresidents and withholding from nonresident income, nonresident real estate sales, and lottery winnings. The rate applies where the listed tax sections specify 6.5% for covered individuals, estates, and trusts. The rule excludes non-grantor trusts administered by licensed private trust companies. The rule applies to tax years beginning on or after January 1, 2026.
The Secretary of Revenue checks state collections each year to determine whether income tax rates must fall. The trigger governs future West Virginia personal income tax rates. Counted revenue must exceed fiscal year 2019 revenue adjusted for inflation. The calculation excludes taxes listed in section 11-13A. The percentage cut equals excess revenue divided by the previous fiscal year's income tax collections, rounded down to a whole percent. The cut applies equally across rates. Its size cannot exceed a 10% reduction in the rates listed in section 11-21-4e. Checks begin August 15, 2026, and occur every August 15 afterward.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 25Chapter 277, Acts, Regular Session, 2026Latest
- Mar 31Approved by Governor Patrick Morrisey 3/31/2026Major
- Mar 18To Governor 3/18/2026To Governor
- Mar 14Approved by Governor Patrick Morrisey 3/31/2026 - House JournalMajor
- Vote recorded Senate concurred in House amendments and passed bill. Result: pass.Upper
- Vote recorded Senate reconsidered action and passed bill. Result: pass.Upper
- Mar 14Approved by Governor Patrick Morrisey 3/31/2026 - Senate JournalBecame Law
- Mar 14To Governor 3/18/2026 - Senate JournalMinor
- Mar 14Completed legislative action
- Mar 14Communicated to House
- Mar 14Senate reconsidered action and passed bill (Roll No. 668)
- Mar 14Senate concurred in House amendments and passed bill (Roll No. 652)
- Mar 14House Message received
- Mar 13Communicated to Senate
- Vote recorded HFA HORNBUCKLE 3-12 #1. Result: fail.Lower
- Vote recorded PASSAGE. Result: pass.Lower
- Mar 13Title amendment adopted (Voice vote)
- Mar 13Passed House (Roll No. 526)Passed House
- Mar 13Read 3rd timeMinor
- Mar 13Committee amendment adopted (Voice vote)
- Mar 13Amendment adopted (Voice vote)
- Mar 13Amendment reported by the Clerk
- Mar 13Amendment rejected (Voice vote)Minor
- Mar 13Amendment reported by the Clerk
- Mar 13Amendment rejected (Roll No. 525)Minor
- Mar 13Amendment withdrawn (Voice vote)
- Mar 13Amendment reported by the Clerk
- Mar 13Amendment withdrawn (Voice vote)
- Mar 13Amendment rejected (Voice vote)Minor
- Mar 13Amendment reported by the Clerk
- Mar 13Reported by the Clerk
- Mar 13On 3rd reading, Special Calendar
- Mar 12Amendments pending
- Mar 12Read 2nd timeMinor
- Mar 12On 2nd reading, Special Calendar
- Mar 11Read 1st timeMinor
- Mar 11Immediate consideration
- Mar 11With amendment, do passMinor
- Feb 23To House FinanceMinor
- Feb 23To FinanceMinor
- Feb 23Introduced in HouseMinor
- Feb 23House received Senate message
- Feb 20Ordered to House
- Vote recorded Passage. Result: pass.Upper
- Feb 20Passed Senate (Roll No. 163)Passed Senate
- Feb 20Read 3rd timeMinor
- Feb 20On 3rd reading
- Feb 19Read 2nd timeMinor
- Feb 19On 2nd reading
- Feb 18Read 1st timeMinor
- Feb 18On 1st reading
- Feb 17Committee substitute reported
- Jan 15To FinanceMinor
- Jan 15Introduced in SenateMinor
- Jan 15To FinanceMinor
- Jan 15Filed for introductionIntroduced
Taxes & Budget