Updated September 5, 2026. Quick answer: West Virginia fully exempts military retirement pay from state income tax, and as of tax year 2026 it fully exempts Social Security benefits for everyone regardless of income after completing a multi-year phase-out. Most other pensions, IRA, and 401(k) income remain taxable as ordinary income, though filers 65 or older or certified permanently disabled can apply a flat $8,000 modification against that income.
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?.
Trusts have their own page: does West Virginia tax trust income.
Dividends and interest have their own page: 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?.
Annuity payments have their own page: 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?.
Military retired pay has its own page: 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.
Selling stocks, funds or real estate has its own page: does West Virginia tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does West Virginia tax 401(k) and IRA withdrawals.
The West Virginia PERS and TRS options and refund rules, from the Board’s own documents: West Virginia PERS and TRS retirement decisions.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how West Virginia taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Benefits from the West Virginia police, firefighter, State Police and deputy sheriff retirement systems are specifically exempt from state income tax under W. Va. Code sec. 11-21-12(c)(6). Benefits from the West Virginia Public Employees and Teachers Retirement Systems are taxable except for a first-$2,000 modification under sec. 11-21-12(c)(5), and a filer 65 or older or certified permanently disabled can apply the $8,000 modification under W. Va. Code sec. 11-21-12(c)(9) against this and other income. |
|---|---|
| Private (employer) pensions | Private employer pensions are taxable as ordinary income. A filer 65 or older or certified permanently disabled can apply the $8,000 modification against this income. |
| Federal government pensions (FERS/CSRS) | Federal government pensions are generally taxable, except for a first-$2,000 modification under W. Va. Code sec. 11-21-12(c)(5) for federal retirement systems covered by 4 U.S.C. sec. 111. Federal pensions may also use the $8,000 senior or disability modification if the recipient is 65 or older or certified permanently disabled. |
| Military retirement pay | Military retirement pay from the regular Armed Forces, Reserves, National Guard, U.S. Public Health Service Commissioned Corps, and NOAA Commissioned Officer Corps is fully exempt from West Virginia income tax, claimed as a decreasing modification to federal adjusted gross income, for tax years beginning on and after January 1, 2019, per TSD-443 (Rev. April 2024). |
| IRA and 401(k)/403(b) distributions | IRA and 401(k) distributions are taxable as ordinary income. A filer 65 or older or certified permanently disabled can apply the $8,000 modification under W. Va. Code sec. 11-21-12(c)(9) against this income. |
| General retirement-income exclusion | The $8,000 decreasing modification under W. Va. Code sec. 11-21-12(c)(9), available to filers 65 or older or certified permanently disabled, functions as West Virginia’s general retirement-income exclusion. A qualifying taxpayer receives the higher of this flat $8,000 modification or the sum of their itemized decreasing modifications, such as the Social Security modification and certain named pension exemptions. |
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West Virginia completed a multi-year phase-out of its Social Security tax and, starting with tax year 2026, fully exempts all Social Security benefits from state income tax regardless of income level. Social Security has its own rules in every state; see the full breakdown in how West Virginia taxes retirement income generally.
Figures verified against W. Va. Code sec. 11-21-12, the West Virginia State Tax Division Social Security modification page and TSD-443 on September 30, 2026; the Form IT-140 line reference for the military modification was not re-checked.
Statute and sources
Governing citation: W. Va. Code sec. 11-21-12(c)(8) (Social Security modification); sec. 11-21-12(c)(9) ($8,000 senior/disability modification).
- West Virginia State Tax Division, Senior Citizen Social Security Modification
- West Virginia State Tax Division, TSD-443, Personal Income Tax of Military Servicemembers
Read September 5, 2026.
Related: how West Virginia taxes retirement income generally · does West Virginia tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.