About the Income Tax Rate Cut

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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% and providing for certain triggers to allow for future cuts in the income tax rates.

The bill also provided for a number of refundable tax credits for payment of property taxes.

Based upon these statutory triggers, the Tax Commissioner issued an Administrative Notice on August 15, 2024, with new tax rates for the 2025 tax year.

After that Administrative Notice was published, the legislature passed SB 2033 in the Second Special Session in 2024, establishing a lower income tax rate for the 2025 tax year and extending additional income tax rate cut triggers. Administrative Notice 2024-03, published in August 2024, has now been superseded by the passage of the new legislation in October 2024. The new income tax rates established in SB 2033 took effect on January 1, 2025, pursuant to W. Va. Code §11-21-4i. Future income rate reduction triggers will be assessed in August 2025 for a January 2027 effective date, pursuant to W. Va. Code §11-21-4h.

Individuals

Effective January 1, 2023, individuals became subject to lower tax rates on their income.

The following tables represent the tax rates applicable to income in the 2023 and 2024 tax years.

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
  • $236.00 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
  • $118.00 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

Based on the passage of SB 2033, these rates changed effective January 1, 2025 to the following:

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
  • 2.22% of taxable income
  • Over $10,000 but not over $25,000
  • $222.00 plus 2.96% of the excess over $10,000
  • Over $25,000 but not over $40,000
  • $666.00 plus 3.33% of excess over $25,000
  • Over $40,000 but not over $60,000
  • $1,165.50 plus 4.44% of excess over $40,000
  • Over $60,000
  • $2,053.50 plus 4.82% of excess over $60,000

For married individuals filing separate returns:

  • If the WV Taxable Income is:
  • The tax is:
  • Not over $5,000
  • 2.22% of taxable income
  • Over $5,000 but not over $12,500
  • $111.00 plus 2.96% of excess over $5,000
  • Over $12,500 but not over $20,000
  • $333.00 plus 3.33% of excess over $12,500
  • Over $20,000 but not over $30,000
  • $582.75 plus 4.44% of excess over $20,000
  • Over $30,000
  • $1,026.75 plus 4.82% of excess over $30,000

Employers

The withholding tax tables have been updated for the 2025 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

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