West Virginia Tax and CPA Services: State, County and City Taxes

West Virginia has been cutting its personal income tax, and the 2026 session did it again. At the same time the state keeps a layer of city taxes that surprises newcomers: a 1% municipal sales tax in more than 100 listed towns, municipal business and occupation (B&O) taxes, and in some cities a service fee or occupational tax. If you live in West Virginia, commute in from Ohio, Pennsylvania, Maryland, Virginia or Kentucky, or run a business here, this page sorts out which tax belongs to which level.

Income tax: two years of falling rates

The Tax Division's 2025 instructions (IT-140) list five brackets for 2025: 2.22% on the first $10,000 of taxable income, then 2.96%, 3.33%, 4.44% and 4.82% on income above $60,000. Married filing separately uses half-size brackets. The 2025 return was due April 15, 2026.

For 2026, SB 392, signed March 31, 2026, cut the rates by 5%, retroactive to January 1, 2026: 2.11%, 2.81%, 3.16%, 4.22% and 4.58%, with the top bracket starting above $60,000. Employer withholding tables were updated for 2026.

Social Security gets special treatment. Under the modification schedule, filers under $50,000 of federal AGI ($100,000 joint) have been fully exempt since 2022, and higher-income filers could exclude 65% for 2025 and 100% for 2026. See taxation of Social Security benefits for the federal side.

Part-year residents and nonresidents file the IT-140 with Schedule A, and residents can claim a credit for tax paid to another state, subject to the reciprocity limits below.

Reciprocity with five neighbors

West Virginia has wage reciprocity with Kentucky, Maryland, Ohio, Pennsylvania and Virginia. A resident of one of those states whose only West Virginia income is wages completes only Part II of Schedule A, and a West Virginia resident cannot claim an other-state credit for wages taxed there. One catch: a domiciliary of Pennsylvania or Virginia who spends more than 183 days in West Virginia is treated as a West Virginia resident. If employers withheld the wrong state's tax, a refund claim goes to the state that withheld. Read our pages on Ohio, Pennsylvania, Maryland and Virginia.

Business taxes and filings

The Corporation Net Income Tax applies to every corporation that earns income here. Filers use Form CIT-120, and corporations expecting more than $10,000 of taxable income make quarterly estimated payments. Check the current form instructions for the rate.

West Virginia's elective pass-through entity tax is a SALT-cap workaround. For calendar-year entities the election is due on or before March 15, it is made year by year and cannot be switched, and individual owners receive an EK-1 to claim a credit on their IT-140.

New businesses register with the State Tax Department, and entities registered with the Secretary of State file an annual report between January 1 and June 30 with a $25 filing fee.

City taxes: sales, B&O and service fees

• Municipal sales tax: Each of 107 listed municipalities, with effective dates through 2027, charges 1%, for a 7% combined rate. Charleston, Huntington, Martinsburg, Morgantown, Parkersburg and Wheeling are on the list. Motor vehicle sales are excluded.
• Municipal B&O tax: Code section 8-13-5 lets cities levy B&O taxes capped at the state maximum rate. Charleston calls them its major revenue source and also charges a city service fee, so ask the city collector what applies to your business.
• Occupational tax: A qualifying municipality with large police and fire pension liabilities may impose an occupational tax of up to 1% on earned income under section 8-13C-3. Employers withhold it.
• Property tax: Property falls into four classes, with owner-occupied homes in Class II. County assessors value it, county commissions sit as boards of equalization from February 1, and sheriffs mail bills on or after July 15.

See our guide to local payroll taxes.

Sales tax for remote sellers

The Tax Division tells out-of-state sellers to register once they reach $100,000 in sales or 200 transactions delivered into the state. Municipal tax is collected on sales into taxing towns too. See sales and use tax.

Payroll in West Virginia

Employers remit withheld income tax by the 15th of the following month and file quarterly Form IT-101Q through MyTaxes. WorkForce West Virginia administers unemployment insurance, with quarterly reports due April 30, July 31, October 31 and January 31. Confirm your rate and the current wage base with the agency. Workplace injury coverage comes from private carriers, and the Insurance Commissioner's office says more than 350 write it. See workers' compensation basics.

How we can help

If you live in the Eastern Panhandle or along the Ohio River and commute across a state line, the wrong state is sometimes withholding. We can check that, claim refunds, and file the correct nonresident return. For West Virginia businesses we can map which cities charge B&O or service fees, set up MyTaxes and WorkForce accounts, and weigh the pass-through entity election. Remote workers and NRI taxpayers who move to or from West Virginia mid-year can start with our multi-state tax service.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.