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Does West Virginia Tax Capital Gains? (2026)

Updated October 4, 2026. Quick answer: Yes. West Virginia prints no gain exclusion, so a gain is income on the graduated schedule, 2.22% to 4.82% for 2025: “$2,053.50 plus 4.82% of excess over $60,000”. W. Va. Code 11-21-4j lowers it for 2026, to “$1,950.50 plus 4.58% of excess over $60,000”.

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 same question for dividends and interest: does West Virginia tax dividends and interest.

How West Virginia treats capital gains

ItemWhat the documents say
TreatmentPart of income taxed on the graduated schedule; no exclusion for gains printed
2025 rates (11-21-4i)2.22% under $10,000; 2.96% over $10,000; 3.33% over $25,000; 4.44% over $40,000; 4.82% over $60,000
2026 rates (11-21-4j)2.11%, 2.81%, 3.16%, 4.22% and 4.58% on the same dollar thresholds

A $50,000 long-term gain

Taxed wholly at the lowest 2025 rate, a $50,000 gain is computed as $50,000 x 2.22% = $1,110; taxed wholly at the top 2025 rate, computed as $50,000 x 4.82% = $2,410.

For 2026 the top rate is 4.58%, so computed as $50,000 x 4.58% = $2,290. Your bracket decides.

What changes in 2026

The 2026 schedule in W. Va. Code 11-21-4j lowers every rate, with a top rate of 4.58%.

Federal rules

The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.

Related: whether West Virginia taxes pensions, how West Virginia taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.

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Sources

Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.

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