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West Virginia State Tax

West Virginia State Tax
The total tax burden in West Virginia, when accounting for state and local taxation, totals 9.4%, which is slightly below the national average of 9.8%.  There are sales taxes as well as relatively low property taxes.  

West Virginia state sales tax – 6%, with prescription drugs exempt.  Food is taxed at 3%, but there is a discount card available for individuals over 65.

West Virginia personal income tax

There are five tax brackets:

- 3 percent on the first $10,000 of taxable income. 
- 4 percent on taxable income between $10,001 and $25,000. 
- 4.5 percent on taxable income between $25,001 and $40,000. 
- 6 percent on taxable income between $40,001 and $60,000. 
- 6.5 percent on taxable income of $60,001 and above.
 West Virginia excise taxes
Taxes will be assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes. 

- $.55 per package of 20 cigarettes
- $1.85/gallon on spirits
- $1 per gallon on table wine
- $.18 per gallon of beer

- $.322/gallon on gasoline

West Virginia estate/inheritance tax 

Only federal laws are in effect.  Estate laws have not been enforceable on deaths occurring after Jan 1, 2005.  There is no West Virginia inheritance tax.

West Virginia payroll taxes

Tax withholding is by formula, unless a supplemental rate is necessary due to a lack of employer withholding from regular wages.

- 3% of annual income less than $10,000 
- 4% of annual income between $10,000 and  $25,000 
- 4.5% of annual income between $25,000 and $40,000 
- 6% of annual income between $40,000 and $60,000 - 6.5% of annual income above $60,000

State Disability Insurance – none
State Unemployment Insurance – 1.5% to 8.5%, wage base is $12,000.  New employer contribution, is 2.70%.  Foreign construction employers use 7.5%.  If liability exceeds $110,000, then SUI must be remitted electronically.
State minimum wage follows federal minimum wage

West Virginia state property tax

Property taxes in West Virginia are collected locally and paid to the country sheriff’s office.  These tax rates reflect levies from the state and county governments as well as school districts.  Additional taxes collected include hotel occupancy taxes and gross receipt taxes.  Property is assessed every three years, no later than July 1 on the year of assessment.  The education tax rate on properties is set by the state legislature.  Both real and intangible property is taxed.

West Virginia state corporate tax

There is a flat tax of 8.5% on all corporate income.  

Exemptions

$2,000 of civil and state pensions is exempt from taxation.  There are additional exemptions of $8,000 on out of state pensions, $2,000 on the West Virginia Teacher’s Retirement System, and $8,000 on retirement income.  The exemption is $16,000 on retirement income for married couples over 65.

Those without employers and are not self-employed may deduct 33.4% of expenses related to medical insurance.The first $2,000 of military retirement pay is exempt from taxation.  Disability payments are generally exempt from West Virginia state taxes.

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