2023 Income Tax Rate Cut and Property Tax Rebate

Learn How to Qualify for the Motor Vehicle Property Tax Credit

On March 7, 2023, Governor Jim Justice signed HB 2526 immediately reducing the income tax in tax year 2023 by an average of 21.25%. The bill also provides for a number of refundable tax credits for payment of property taxes. The following information is initial guidance on the income tax rate cut. More guidance will follow as it becomes available.

Based upon a certification received from the Secretary of Revenue and the State Auditor on August 15, 2024, pursuant to W. Va. Code §11-21-4h, the personal income tax rates will be reduced by 4% beginning January 1, 2025. For more information, please see Administrative Notice 2024-03.

Individuals

Individuals are now subject to lower tax rates on their income beginning in the 2023 tax year. These rate changes do not affect your 2022 personal income tax return filed in 2023. These rates will be on your 2023 personal income tax return filed in early 2024.

The following tables represent the tax rates now applicable to income in the 2023 tax year.

For individuals (except married individuals filing separate returns), individuals filing joint returns, heads of households, and estates and trusts, the following rates apply:

  • If the WV Taxable Income is:
  • The tax is:
  • Not over $10,000
  • 2.36% of taxable income
  • Over $10,000 but not over $25,000
  • $236 plus 3.15% of the excess over $10,000
  • Over $25,000 but not over $40,000
  • $708.50 plus 3.54% of excess over $25,000
  • Over $40,000 but not over $60,000
  • $1,239.50 plus 4.72% of excess over $40,000
  • Over $60,000
  • $2,183.50 plus 5.12% of excess over $60,000

For married individuals filing separate returns:

  • If the WV Taxable Income is:
  • The tax is:
  • Not over $5,000
  • 2.36% of taxable income
  • Over $5,000 but not over $12,500
  • $118 plus 3.15% of excess over $5,000
  • Over $12,500 but not over $20,000
  • $354.25 plus 3.54% of excess over $12,500
  • Over $20,000 but not over $30,000
  • $619.75 plus 4.72% of excess over $20,000
  • Over $30,000
  • $1,091.75 plus 5.12% of excess over $30,000

These rates were changed retroactively to January 1, 2023. Therefore, if you over withheld income tax or overpaid your taxes prior to the rate change, a refund will be available to all taxpayers upon the filing of your 2023 personal income tax return in 2024.

Based on Administrative Notice 2024-03, these rates will be changed effective January 1, 2025 as follows:

For individuals (except married individuals filing separate returns), individuals filing joint returns, heads of households, and estates and trusts, the following rates apply:

  • If the WV Taxable Income is:
  • The tax is:
  • Not over $10,000
  • 2.27% of taxable income
  • Over $10,000 but not over $25,000
  • $227.00 plus 3.02% of the excess over $10,000
  • Over $25,000 but not over $40,000
  • $680.00 plus 3.40% of excess over $25,000
  • Over $40,000 but not over $60,000
  • $1,190.00 plus 4.53% of excess over $40,000
  • Over $60,000
  • $2,096.00 plus 4.92% of excess over $60,000

For married individuals filing separate returns:

  • If the WV Taxable Income is:
  • The tax is:
  • Not over $5,000
  • 2.27% of taxable income
  • Over $5,000 but not over $12,500
  • $113.50 plus 3.02% of excess over $5,000
  • Over $12,500 but not over $20,000
  • $340.00 plus 3.40% of excess over $12,500
  • Over $20,000 but not over $30,000
  • $595.00 plus 4.53% of excess over $20,000
  • Over $30,000
  • $1,048.00 plus 4.92% of excess over $30,000

Employers

As indicated above, the income of individuals is now subject to new tax rates.

The withholding tax tables have been updated for the 2023 tax year. The traditional two-earner table has been adjusted to account for the retroactive nature of the tax reduction: The optional single earner table has not.

  • IT-104 Employee’s Withholding/Exemption Certificate

Tax Credits for Property Taxes Paid

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