The state of West Virginia taxes it residents at the following rates, regardless of filing status.
- Up to $10,000 at 3%
- $10,001 to $25,000 at 4%
- $25,001 to $40,000 at 4.5%
- $40,001 to $60,000 at 6%
- $60,001 and above at 6.5%
West Virginia taxes Social Security benefits to the extent that they are taxed by Federal Taxes.
Retirement Income and Exemptions
West Virginia starts to tax based on your Adjusted Gross Income. West Virginia taxes items such as distributions from IRAs, pensions and Social Security for the amount of Adjusted Gross Income that is taxed federally. If you are 65 and older you may exclude up to the first $8,000 from state taxes, $16,000 if married Filing Jointly. If you receive your pension from another state you also qualify for the exemptions. If you are a resident you may exempt up to $2,000 from state or civil pensions.
You can be exempt from West Virginias personal income tax with a Family Tax Credit if you qualify based on income limits.
Residents – Any person who is physically in West Virginia or who maintains an abode in state for greater those 183 days during the tax year is considered a resident. You don’t have to have 183 consecutive days to be a resident. To the IRS, many whom are classified as residents actually live within the state boundaries of West Virginia.
There is a possibility that you can be considered an actual resident of West Virginia and have a Domiciliary in another state. A good example of this is a student who stays in West Virginia during the school year and resides in another state.
Residents with Domiciliary – You can be considered a legal resident with a domiciliary in West Virginia, most domiciliary residents do live in West Virginia. There are some exceptions to this where you may be a domiciliary resident but not live in West Virginia. Examples are; A student that is attending school in another state but maintains their legal residence in West Virginia, a resident who is working in another country but does not abandon their current domicile, and Military personal who are out of state and do not forfeit their residency.
