West Virginia is a reasonable state regarding taxes. Even though they have income tax, the highest rate is 6.50%. They have pretty low property tax rates, however they do tax social security at the state level. Also, depending on the city you live in, you may have additional local income tax.
State Taxes at a Glance – West Virginia
|Type of Tax||2022|
|Individual Rates||3.00% to 6.50%|
|Corporate / Business Tax Rates||6.50% flat tax|
|Gross Receipts Tax||Yes|
|Sales Tax||6.52% (average)|
|Property Taxes||0.55% as a percentage of primary home|
|Estate or Inheritance Tax||None|
Similar to most states, West Virginia has multiple tax brackets which range from 3.00 to 6.50%. The highest tax bracket starts at 60,000.
Local and City Taxes in West Virginia
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 in which additional payroll tax is assessed. They are:
- Charleston – $6 per pay period
- Huntington – $10 per pay period
- Parkersburg – $5 per pay period
- Weirton – $2 per week
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 are 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 Tax – 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 0.52% (making their average sales tax rate in the state 6.52%). Note: there is no sales tax on groceries in West Virginia.
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 1.08%.
DMV fees in West Virginia
West Virginia’s DMV fees are personal property taxes paid to your county. It is based on the value of the vehicle, so they are tax deductible. Here is a link to the West Virginia DMV website so you can learn more.
Domicile in West Virginia
If you maintain a permanent place of abode for over 183 days, in aggregate, you are considered a West Virginia resident.
Social Security Benefits Tax in West Virginia
West Virginia is one of the few states that taxes Social Security. However, there are exemptions:
- Married filing jointly and you make less than $100,000
- Single and you make less than $50,000
All others must pay tax on social security benefits.
Payroll 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
- UI Rates – range from 1.50% 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
West Virginia Tax Contact Phone Numbers
Important phone numbers for the West Virginia Department of Taxation:
- Website: tax.wv.gov
- Phone# for Individuals – (304) 558-3333
- Phone# for Businesses – Same