Income Tax Credits for Property Taxes Paid

To see about downloading a copy of your MV-1 letter, visit our MyTaxes website. If you do not need to file a personal income tax return with West Virginia ( IT-140), you may also be able to claim your MV-1 credit on the MyTaxes website.

  • TSD 454 Motor Vehicle Property Tax Adjustment Credit
  • TSD 455 Disabled Veteran Real Property Tax Credit
  • TSD 456 Small Business Property Tax Adjustment Credit

Note: These credits are for specific property taxes paid timely beginning January 1, 2024, but also includes payments made in the second-half of 2023 that were due in 2024.

Motor Vehicle Property Tax Adjustment Credit

This is a refundable personal income tax credit for individuals, partnerships, s-corporations, LLCs, and c-corporations for all property taxes paid timely on certain eligible classes of vehicles.

The credit is only available for the actual tax timely paid on eligible vehicles.

Leasing companies are required to pass on the credit to the consumer, while motor vehicle dealers are not eligible at all.

The West Virginia Tax Division will be sending out MV-1 letters to eligible taxpayers. The letter will provide necessary information regarding your eligible tax credit. If you have not received a MV-1 letter by February 15, 2025 you can go online to MyTaxes and click “Request Another Motor Vehicle Property Tax Letter” to generate your letter.

Taxpayers who are not required to file a West Virginia income tax return but wish to claim the credit for their motor vehicle property taxes timely paid can click "Claim the Motor Vehicle Property Tax MV-1 Credit" at the MyTaxes website.

If you are claiming credits in addition to the Motor Vehicle Adjustment Property Tax Credit, such as Senior Citizen Tax Credit (SCTC ), Homestead Excess Property Tax Credit (HEPTC), etc.. you must file a West Virginia Personal Income Tax Return to claim all credits.

For more information on eligibility, see TSD 454.

For more information on eligibility, how to file, and frequently asked questions, please visit our full Motor Vehicle Property Tax Adjustment Credit webpage here.

Disabled Veteran Real Property Tax Credit

This is a refundable personal income tax credit for disabled, veteran homeowners.

Only eligible veterans who are 90-100% permanently and totally disabled and owners of a homestead which is used or occupied exclusively for residential purposes may claim the Disabled Veteran Real Property Tax Credit.

The credit is only available for the actual tax timely paid on the eligible taxpayer’s homestead.

How to Claim

Eligible taxpayers are required to file a West Virginia Personal Income Tax Return in order to claim this credit.

Taxpayers should complete form DV-1, then enter the Total Tax Paid on Part II of the DV-1 on the IT-140, Line 21(B).

Along with the return and form, taxpayers will need to submit a copy of their receipt(s) for the property tax amount paid along with a copy of their Disability Rating letter from the Department of Veterans Affairs.

Taxpayers claiming the Disabled Veteran Real Property Tax Credit are not eligible to take the Senior Citizen Tax Credit (SCTC) or Homestead Excess Property Tax Credit (HEPTC).

While taxpayers are permitted to take the SCTC and HEPTC together after the SCTC has been factored out of your HEPTC amount, the Disabled Veterans Real Property Tax Credit takes precedence over both. If the SCTC or HEPTC were claimed on a taxpayer’s 2023 income tax return, the 2023 timely made payments cannot be credited.

Small Business Property Tax Adjustment Credit

This is a refundable credit for small businesses that own an aggregate appraised personal property value of $1 million or less. The aggregate appraised value is the true and actual value of all personal property owned in West Virginia by both the small business and any of their related entities. Eligible small businesses who are the owners of the aggregate properties may receive 50% of the amount of West Virginia personal property taxes timely paid, minus the credit amount they already received from the Motor Vehicle Property Tax Adjustment Credit.

  • Forms / Documentation
  • Amount of MV-1 credit being claimed on your personal income tax return.
  • Property tax receipts that were paid timely

How to Claim

Eligible taxpayers are required to file a West Virginia Personal Income Tax Return in order to claim this credit.

Taxpayers should complete form SB-1, then enter the amount of credit from the SB-1, Line 9 - Total Credit on the IT-140, Line 21(C) (or the corresponding lines on the PTE or CIT returns).

Along with the return and form, taxpayers will need to submit a copy of their receipt(s) for the property tax amount paid. Taxpayers will need to file a separate SB-1 for each property tax year if trying to claim any timely made second-half of 2023 payments to ensure properties aren’t duplicated on one form when determining if the aggregate appraised property value threshold is met.

Please note: While both businesses and individuals may be eligible to claim the SB-1 credit, it cannot be passed or sold from the party named on the receipt to another. Only the named party is eligible to claim it on their return.

Assistance

For assistance with these credits, please contact Taxpayer Services at 304-558-3333 or via email at TaxHelp@WV.Gov.

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