STATE RANKING #24

Quick facts: 

-West Virginia assesses it’s local income taxes directly out of your paycheck.

-West Virginia has a flat Corporate tax rate.

6.50%*

State Income Tax

State
Income
Tax

6.50%

Cost of Setting Up A Business

state
business
tax

LOW

Property
Taxes

6.41%

Sales
Tax (average)

State Income Taxes in West Virginia

Similar to most states, West Virginia has multiple tax brackets (4) which range from 3.00 to 6.50%. The highest tax bracket starts at 60,000.

West Virginia also has Local & City income tax* in addition to the regular state income tax. West Virginia’s Local & City tax is unique, since it is accessed on wages (as an additional Payroll Tax). The only other state that does this is Colorado.

There are just four (4) cities in West Virginia which the additional tax is assessed. They are:

  • Charleston – $6 per pay period
  • Huntington – $10 per pay period
  • Parkersburg – $5 per pay period
  • Weirton – $2 per week

State Business Taxes in West Virginia

The state of West Virginia has a flat Corporate income tax rate of 6.50% on all income on C Corporations. For other businesses that flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rate that ranges between 3.00% to 6.50%.

Sales Taxes in West Virginia

Like most states, West Virginia has both a local and state sales tax rates. Their state sales tax rate is 6.00% and their average local sales tax rate is 0.41% (making their average sales tax rate in the state 6.41%).

Property Taxes in West Virginia

The average property tax rate for residential property in the state of West Virginia is .55%. Which puts it well below with the national average of 1.05%.

Unemployment taxes in West Virginia

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – West Virginia has a wage base of $12,000 for 2020
  • UI Rates – range from 0.15% to 8.50%
  • Schedules – West Virginia has multiple rate schedules regarding UI

West Virginia Business Entities - LLCs

West Virginia is an inexpensive state to open an LLC. Here are some important facts:

  • West Virginia’s annual LLC fee at only $25
  • When you register with the state, you pay a one time fee of $100
  • Secretary of State of West Virginia website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #23

State #25