Clear Money Guide
What this state guide covers
A quick view of the questions, practical details and source notes below.
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2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.
Updated July 24, 2026. Quick answer: Tax year 2026 completes West Virginia’s Social Security phase-out. Under HB 4880 (2024), filers with federal adjusted gross income above $50,000 ($100,000 joint) took a 35% modification in 2024 and 65% in 2025, and take 100% for taxable years beginning on or after January 1, 2026. Filers at or below those thresholds have had 100% since tax year 2022. The same year brings an across-the-board rate cut, retroactive to January 1, 2026, putting the top rate at 4.58% (from 4.82% in 2025 and 5.12% before). Pensions, 401(k) and IRA withdrawals remain taxable, softened by an $8,000-per-person modification for filers age 65 or older, or certified permanently and totally disabled at any age ($16,000 joint if both qualify). That $8,000 is a residual, not an addition: §11-21-12(c)(9) reduces it by the modifications under subdivisions (1), (2), (5), (6), (7) and (8), so a filer whose Social Security modification alone is $8,000 or more gets none of it. Military retirement is fully exempt. No estate or inheritance tax.
Federal civil service pensions in West Virginia: does West Virginia tax federal pensions.
State retirement-income forms, line by line: West Virginia Schedule M.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: West Virginia tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does West Virginia tax 403(b) and 457(b) withdrawals.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is West Virginia a community property state?.
Selling your home? How the state taxes the profit, from its own tax documents: Does West Virginia tax the profit from selling your home?.
The state’s income tax schedule: the West Virginia tax brackets for 2026.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: West Virginia tax withholding on IRA and 401(k) withdrawals.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does West Virginia have an inheritance tax?.
For trust income specifically: does West Virginia tax trust income.
For dividends and interest specifically: does West Virginia tax dividends and interest.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does West Virginia tax HSA contributions?.
For annuity payments specifically: does West Virginia tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does West Virginia have an estate tax?.
For military retired pay: does West Virginia tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: West Virginia 529 plan tax deduction.
For the sale of stocks, funds or real estate: does West Virginia tax capital gains.
For 401(k) and IRA withdrawals specifically: does West Virginia tax 401(k) and IRA withdrawals.
Before the tax question, the West Virginia PERS and TRS annuity options, refund and buyback rules: West Virginia PERS and TRS retirement decisions.
The detail on each income type: Does West Virginia Tax Pensions?, Does West Virginia Tax Social Security? (2026) and Does West Virginia Tax Roth Conversions? 2026.
The 2026 double-header (SS exemption completes, rates cut again)
For tax year 2026, filers with federal adjusted gross income above $50,000 ($100,000 joint) take a 100% Social Security modification for the first time. Filers at or below those thresholds have taken 100% since tax year 2022, so a 65% figure describes 2025 for higher-income filers only. SB 392 trimmed every bracket about 5%, retroactive to January 1, 2026. The schedule now runs 2.11% to 4.58% (W. Va. Code §11-21-4j, effective June 12, 2026), down from 5.12% in 2024 and 4.82% in 2025. Under §11-21-4h, which applies to taxable years beginning on and after January 1, 2027, rates fall further only if general revenue collections exceed inflation-adjusted base year revenues. Layered on top: the $8,000 senior modification (any income type, 65+), the first $2,000 of WV state/federal civil-service pensions, and full exemptions for WV police/firefighter/deputy pensions and military retirement (W. Va. Code §11-21-12). Read §11-21-12(c)(9) before counting on that $8,000, though: it is allowed only to the extent the modifications under subdivisions (1), (2), (5), (6), (7) and (8) come to less than $8,000. Those subdivisions cover interest on federal obligations, the $2,000 retirement-system modification, the public-safety pension modification, the military retirement modification and the Social Security modification. A 65+ filer whose Social Security modification is $8,000 or more gets $0 from the senior modification, and one with a $5,000 Social Security modification and no other listed modification gets $3,000, not $8,000. The Social Security modification equals the benefits included in federal adjusted gross income, and filers at or below $50,000 ($100,000 joint) have had it at 100% since tax year 2022.
How West Virginia taxes retirement income (statute-cited)
| Income tax | Graduated; TY2026 rates cut ~5% retroactive to Jan. 1, 2026 — top rate 4.58% (4.82% in 2025, 5.12% in 2024) |
| Social Security | Not taxed for TY2026: 100% of benefits included in federal AGI is a decreasing modification at all income levels (§11-21-12(c)(8)); above $50,000, or $100,000 joint, the HB 4880 phase-in was 35% in 2024 and 65% in 2025, and at or below those thresholds the modification has been 100% since TY2022 |
| Pension / 401(k) / IRA | Taxable; $8,000/person modification at 65+ or certified permanently and totally disabled ($16,000 MFJ if both qualify), reduced by the other listed modifications, so a filer whose listed modifications total $8,000 or more (Social Security, military and the others) gets $0 of it (§11-21-12(c)(9)); first $2,000 per person of WV PERS, WV TRS and federal (4 U.S.C. §111) retirement benefits exempt (§11-21-12(c)(5)) |
| Military retirement | Fully exempt (W. Va. Code §11-21-12); WV police/firefighter/deputy sheriff pensions also fully exempt |
| Estate / inheritance tax | None |
Probate: the statutory commission schedule and the Small Estate Act
Personal-representative commissions are set by statute (W. Va. Code §44-4-12a): 5% of the first $100,000, 4% above $100,000 up to $400,000, 3% above $400,000 up to $800,000 and 2% above $800,000 of personal estate accounted for and of proceeds of real estate sold, plus 1% of the value of real estate that is not sold; the county commission may reduce the commission for unfaithful service or increase it for extraordinary services. The Small Estate Act (effective July 1, 2021) provides an affidavit process without PR appointment where probate personal property is at most $50,000 and the decedent owned no probate real property or interest in probate real property (W. Va. Code §44-1A-2, as amended by HB 2867 in 2025). Context: probate cost by state · small-estate limits by state.
Is West Virginia a good state to retire in for taxes?
Trending friendlier: from tax year 2026, Social Security is untaxed, the top rate has fallen from 5.12% in 2024 to 4.58%, seniors get up to $8,000 each off the top only to the extent their other modifications have not already used it, military retirement and WV police, firefighter and deputy sheriff pensions are fully exempt, and there are no estate or inheritance taxes. The remaining bill lands on large 401(k)/IRA drawdowns, taxed to 4.58% past the modifications. Against neighbors: Pennsylvania still beats it for pure withdrawal exemption, but WV’s no-inheritance-tax side wins the estate comparison with both PA and Kentucky.
West Virginia vs. common alternatives
| State | Social Security | Pension / 401(k) / IRA | Estate tax | Inheritance tax |
|---|---|---|---|---|
| West Virginia | Not taxed (100% exempt from TY2026) | Taxable; $8,000/person senior modification at 65+ or certified permanently and totally disabled, less the other listed modifications claimed | None | None |
| Virginia | Not taxed | Taxable; age deduction up to $12,000 (income-tested) | None (effectively repealed with the federal credit for state death taxes) | None, except certain remainder interests |
| Kentucky | Not taxed | Excluded up to $31,110/person; 3.5% above | None | Yes — Class B/C heirs (4–16%) |
| Ohio | Not taxed | Taxed at $332 plus 2.75% over $26,050; small credits | None (repealed 2013) | None |
Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.
Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and West Virginia starts from federal adjusted gross income, so the converted amount is taxed unless a modification in §11-21-12 applies. See how all 51 jurisdictions tax Roth conversions.
Finding a financial advisor in West Virginia
Per the SEC’s July 2026 Investment Adviser roster, West Virginia has 12 SEC-registered advisory firms (#50 nationally) managing $8.8 billion (#50 by AUM). Full breakdown: West Virginia advisor statistics. Reviewing fee structures: fee-drag calculator.
What probate costs in West Virginia
West Virginia sets personal-representative commissions by a statutory percentage schedule (W. Va. Code §44-4-12a: 5% on the first $100,000, falling to 2% above $800,000) that the county commission may reduce if the personal representative has not faithfully discharged the duties of the office or increase for extraordinary services. Its small-estate route stops at $50,000 of personal property and cannot reach real property at all: since July 9, 2025 an estate that includes probate real estate is precluded from the route outright (HB 2867 (2025), amending W. Va. Code §44-1A-2). Full detail with the governing statute, the court filing fee and the threshold: West Virginia probate cost. To price a specific estate, use the probate cost calculator.
Cite or share this guide
Suggested citation: Clear Money Guide, “West Virginia Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/west-virginia-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.
Figures verified against W. Va. Code §§11-21-4j, 11-21-12, 44-1A-2 and 44-4-12a (code.wvlegislature.gov), the West Virginia Tax Division senior-modification and 2026 rate-cut pages, and the Ernst & Young report on S.B. 392 on September 30, 2026; the HB 2867 effective date, the Virginia and Ohio detail beyond the corrected Ohio row, the Kentucky comparison row (checked only against the b44 Kentucky review), the estate-tax rows (Tax Foundation table only) and the SEC adviser roster figures were not re-checked.
Primary sources
- https://tax.wv.gov/Individuals/SeniorCitizens/Pages/SeniorCitizenSocialSecurityModification.aspx
- https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx
- https://taxnews.ey.com/news/2026-0864-west-virginia-law-lowers-personal-income-tax-rate-retroactive-to-january-1-2026-updated-withholding-formula-is-now-available
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
- https://code.wvlegislature.gov/44-1A-2/
- https://code.wvlegislature.gov/44-1A-1/
- https://berkeleywv.org/750/Small-Estates