Tax policy in West Virginia

in  West Virginia

* Fiscal
* Budgets
* West Virginia state budget and finances
* Tax policy in West Virginia
* Finance
* Financial regulation in West Virginia
* Pensions
* Public pensions in West Virginia
* Pension health in West Virginia
* Civil liberties
* Affirmative action in West Virginia
* Campaign finance requirements in West Virginia
* Campaign finance requirements for West Virginia ballot measures
* Nonprofit regulation in West Virginia
* Education
* Charter schools in West Virginia
* Higher education in West Virginia
* Public education in West Virginia
* School choice in West Virginia
* Elections
* Ballot access
* Ballot access requirements for political candidates in West Virginia
* Ballot access requirements for political parties in West Virginia
* Political parties in West Virginia
* Ballot access requirements for presidential candidates in West Virginia
* Redistricting in West Virginia
* Voting in West Virginia
* Energy and Environment
* Energy policy in West Virginia
* Fracking in West Virginia
* Oil and gas extraction on federal land in West Virginia
* Endangered species in West Virginia
* Environmental policy in West Virginia
* Healthcare
* Healthcare policy in West Virginia
* Medicaid spending in West Virginia
* Effect of the Affordable Care Act in West Virginia
* Immigration
* Immigration in West Virginia

* * *

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

* * *

Tax policy in West Virginia

Tax rates in 2017
Personal income tax:
3% to 6.5%
State sales tax:
6.00%
Corporate income tax:
6.50%
Tax revenues in 2016
Total tax collections:
$5.13 billion
Tax collections per capita:
$2,800

Total state expenditures • State debt • West Virginia state budget and finances

West Virginia generates the bulk of its tax revenue by levying a personal income tax, a general sales tax and select sales taxes (otherwise known as excise taxes). The state derives its constitutional authority to tax from Article X of the state constitution.[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.[3]

HIGHLIGHTS

* According to the United States Census Bureau, West Virginia collected $5.13 billion in tax revenue in 2016. The state's tax revenue per capita was $2,800.

## Contents

* 1 Tax rates
* 1.1 Personal income tax
* 1.1.1 Personal exemptions
* 1.1.2 Capital gains tax
* 1.2 Sales tax
* 1.2.1 Excise taxes
* 1.3 Corporate income tax
* 1.4 Property tax
* 1.5 Estate and inheritance taxes
* 2 Tax revenues
* 3 Tax ballot measures
* 4 Recent news
* 5 See also
* 6 External links
* 7 Footnotes

## Tax rates[edit]

### Personal income tax[edit]

See also: Personal income tax

West Virginia utilized a personal income tax rate ranging from 3 percent to 6.5 percent in 2017. An individual's tax liability varies according to his or her tax bracket. A tax bracket is the income range to which a tax rate applies.[4]

The table below summarizes personal income tax rates for West Virginia and neighboring states in 2017.[4]

Personal income tax rates, 2017

State  | Tax rates  | Number of brackets  | Brackets
Lowest  | Highest  | Lowest  | Highest
West Virginia | 3% | 6.5% | 5 | $10,000 | $60,000
Kentucky | 2% | 6% | 6 | $3,000 | $75,001
Tennessee | State Income Tax of 6% on Dividends and Interest Income Only
Virginia | 2% | 5.75% | 4 | $3,000 | $17,001
Note: For complete notes and annotations, please see the source below.
Source: Tax Policy Center, "Individual State Income Tax Rates 2000-2017," accessed October 26, 2017

#### Personal exemptions[edit]

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. [5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for West Virginia and its neighboring states as reported by the Tax Policy Center are reported in the chart below.[6]

Personal exemptions, 2017

State  | Single  | Married  | Dependents
West Virginia | $2,000 | $4,000 | $2,000
Kentucky | $20 | $40 | $20
Tennessee | State Income Tax of 6% on Dividends and Interest Income Only
Virginia | $930 | $1,860 | $930
Note: For complete notes and annotations, please see the source below.
Source: Tax Policy Center, "Individual State Income Tax Rates 2000-2017," accessed October 26, 2017

#### Capital gains tax[edit]

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. [7][8][9]

The table below summarizes uppermost capital gains tax rates for West Virginia and neighboring states in 2015.

Uppermost capital gains tax rates by state, 2015

State  | State uppermost rate  | Combined uppermost rate
West Virginia | 6.5% | 28.9%
Kentucky | 6% | 28.6%
Tennessee | 0% | 25%
Virginia | 5.8% | 28.5%
Note: For complete notes and annotations, please see the source below.
Source: Tax Foundation, "The High Burden of State and Federal Capital Gains Tax Rates," accessed October 26, 2017

### Sales tax[edit]

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

West Virginia's state sales tax was 6.00 percent in 2017. The average local tax was about 0.29 percent, meaning that the average combined sales tax was about 6.29 percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for West Virginia and its neighboring states.[10]

Combined sales tax rates, 2015

State  | State sales tax  | Average local sales tax  | Combined
West Virginia | 6.00% | 0.29% | 6.29%
Kentucky | 6.00% | 0.00% | 6.00%
Tennessee | 7.00% | 2.46% | 9.46%
Virginia | 5.30% | 0.33% | 5.63%
Note: For full annotations, see the source below.
Source: The Tax Foundation, "State and local sales tax rates, 2017," accessed October 26, 2017

The table below summarizes sales tax rates for West Virginia and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).[11]

Sales tax rates, 2017

State  | Sales tax rate  | Exemption status
Food  | Prescription drugs  | Nonprescription drugs
West Virginia | 6.0% | Exempt | Exempt | Taxable
Kentucky | 6.0% | Exempt | Exempt | Taxable
Tennessee | 7.0% | 5 | Exempt | Taxable
Virginia | 5.3% | 2.5 | Exempt | Exempt
Source: Tax Policy Center, "Sales Tax Rates 2000-2017," accessed October 26, 2017

#### Excise taxes[edit]

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in West Virginia and neighboring states.[12][13][14][15]

Fuel excise tax rates, 2017 (in cents per gallon)

State  | Gasoline  | Diesel  | Gasohol
Excise tax  | Other taxes  | Total tax  | Excise tax  | Other taxes  | Total tax  | Excise tax  | Other taxes  | Total tax
West Virginia | 20.5¢ | 11.7¢ | 32.2¢ | 20.5¢ | 11.7¢ | 32.2¢ | 20.5¢ | 11.7¢ | 32.2¢
Kentucky | 24.6¢ | 1.4¢ | 26¢ | 21.6¢ | 1.4¢ | 23¢ | 24.6¢ | 1.4¢ | 26¢
Tennessee | 20¢ | 1.4¢ | 21.4¢ | 17¢ | 1.4¢ | 18.4¢ | 20¢ | 1.4¢ | 21.4¢
Virginia | 16.2¢ | 0¢ | 16.2¢ | 20.2¢ | 0¢ | 20.2¢ | 16.2¢ | ¢ | 16.2¢
Note: For full annotations, see the source below.
Source: Tax Policy Center, "State Motor Fuels Tax Rates 2000-2011, 2013-2017," accessed October 26, 2017
Alcohol excise tax rates, 2017 (in dollars per gallon)

State  | Liquor  | Wine  | Beer
Tax rate  | Does general sales tax apply?  | Tax rate  | Does general sales tax apply?  | Tax rate  | Does general sales tax apply?
West Virginia | See footnote 1 | Yes | $1.0 | Yes | $0.2 | Yes
Kentucky | $1.9 | Yes | $0.5 | Yes | $0.1 | Yes
Tennessee | $4.4 | Yes | $1.2 | Yes | $1.3 | Yes
Virginia | See footnote 1 | Yes | $1.5 | Yes | $0.3 | Yes
Note: For full annotations, see the source below.
1"In 17 states, the government directly controls the sales of distilled spirits. Revenue in these states is generated from various taxes, fees, price mark-ups, and net liquor profits."
2"General sales tax applies to on-premise sales only."
Source: Tax Policy Center, "Alcohol Rates 2000-2010, 2013-2017," accessed October 26, 2017
State cigarette taxes, 2017 (in cents per pack)

State  | Tax rate  | National ranking
West Virginia | 120¢ | 32
Kentucky | 60¢ | 43
Tennessee | 62¢ | 42
Virginia | 30¢ | 50
Note: For full annotations, see the source below.
Source: Tax Policy Center, "State Cigarette Taxes, 2017," accessed October 26, 2017

### Corporate income tax[edit]

See also: Corporate income tax

West Virginia levies a corporate income tax rate of 6.5 percent. The table below compares the corporate income tax rates of some of its neighboring states.[16][17]

Corporate income tax rates, 2016

State  | Tax rate  | Brackets  | Number of brackets
Lowest  | Highest
West Virginia | 6.50% | Flat Rate | 1
Kentucky | 4.00% to 6.00% | $50,000 | $100,000 | 3
Tennessee | 6.50% | Flat Rate | 1
Virginia | 6.00% | Flat Rate | 1
Note: For complete notes and annotations, please see the source below.
Source: Tax Foundation, "State Corporate Income Tax Rates and Brackets for 2015," accessed October 26, 2017

### Property tax[edit]

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.[18][19][20] [18][19]

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in West Virginia and neighboring states.[18]

Mean property taxes paid per state, 2012 and 2014

State  | Mean property taxes paid (2012)  | Property tax as a percent of home value (2014)
West Virginia | $718 | 0.53%
Kentucky | $1,339 | 0.80%
Tennessee | $1,372 | 0.75%
Virginia | $2,860 | 0.81%
Source: Tax Policy Center, "Residential Property Taxes in the United States," November 18, 2013
Source: Tax Foundation, "Facts & Figures 2016: How Does Your State Compare?", accessed October 27, 2017

The table below lists per capita state and local property tax collections for West Virginia and neighboring states for fiscal year 2013.[21]

State and local property tax collections per capita, 2013

State  | Collections per capita
West Virginia | $798
Kentucky | $732
Tennessee | $838
Virginia | $1,430
Source: Tax Foundation, "Facts and Figures 2016: How Does Your State Compare?" accessed October 26, 2017

### Estate and inheritance taxes[edit]

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.[22][23][24]

West Virginia does not levy an estate tax, although residents are liable for the federal estate tax. The table below summarizes the estate tax rates for West Virginia and neighboring states in 2016.[24]

Estate taxes, 2016

State  | Exemption threshold  | Minimum rate  | Maximum rate
West Virginia | N/A
Kentucky | N/A
Tennessee | N/A
Virginia | N/A
Note: For complete notes and annotations, please see the source below.
Source: Tax Foundation, "Facts and Figures 2015: How Does Your State Compare?" accessed October 5, 2015

## Tax revenues[edit]

See also: West Virginia state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.[25]

State tax collections by source ($ in thousands), 2016

State  | Property taxes  | Sales and gross receipts  | Licenses  | Income taxes  | Other taxes  | Total  | 2016 population  | Per capita collections
West Virginia | $6,957 | $2,566,690 | $128,478 | $1,990,391 | $435,454 | $5,127,970 | 1,831,102 | $2,800
Kentucky | $577,544 | $5,603,120 | $505,377 | $4,888,920 | $203,905 | $11,778,866 | 4,436,974 | $2,655
Tennessee | N/A | $9,704,247 | $1,516,966 | $1,862,601 | $302,355 | $13,386,169 | 6,651,194 | $2,013
Virginia | $30,367 | $6,886,378 | $826,306 | $12,990,685 | $486,021 | $21,219,757 | 8,411,808 | $2,523
United States | $18,364,298 | $442,909,995 | $52,164,396 | $392,286,910 | $24,538,146 | $930,263,745 | 322,762,018 | $2,882.20
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017

The table below lists 2016 tax collections by source as percentages of total collections. About 50.1 percent of West Virginia's total state tax collections came from sales taxes and gross receipts.[25]

State tax collections by source (as percentages), 2016

State  | Property taxes  | Sales and gross receipts  | Licenses  | Income taxes  | Other taxes
West Virginia | 0.1% | 50.1% | 2.5% | 38.8% | 8.5%
Kentucky | 4.9% | 47.6% | 4.3% | 41.5% | 1.7%
Tennessee | N/A | 72.5% | 11.3% | 13.9% | 2.3%
Virginia | 0.1% | 32.5% | 3.9% | 61.2% | 2.3%
Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed April 4, 2016

## Tax ballot measures[edit]

Voting on taxes

Ballot measures
By state
By year
Not on ballot
| Local

City taxes
County taxes
School taxes
Property taxes
Sales taxes
Income taxes
Other taxes

See also: Taxes on the ballot and List of West Virginia ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in West Virginia.

1. West Virginia Economic Development Amendment, Amendment 1 (2002)
2. West Virginia Excess Levies Amendment, Amendment 2 (2002)
3. West Virginia Amendment 1 (1998)
4. West Virginia Nonprofit Youth Organization Tax Exemption, Amendment 1 (2014)
5. West Virginia Capitation Tax Constitutional Amendment, Amendment 1 (1970)
6. West Virginia Removing Tax on Household Goods and Personal Effects Amendment, Amendment 2 (1972)
7. West Virginia Federal Grants and County and Municipal Aid Amendment, Amendment 5 (1972)
8. West Virginia Homestead and Taxation Amendment, Amendment 3 (1973)
9. West Virginia Freeport Amendment, Amendment 1 (1978)
10. West Virginia Homestead and Taxation Exemption Amendment, Amendment 2 (1980)
11. West Virginia Property Tax Limitation and Homestead Amendment of 1982, Amendment 3 (1982)
12. West Virginia Equitable Taxation and Exemption Amendment, Amendment 5 (1984)
13. West Virginia Warehouse Freeport Tax Exemption Amendment, Amendment 3 (1986)
14. West Virginia Uniform School Funding Amendment, Amendment 1 (1988)
15. West Virginia Local Government Levy and Bond Issue Amendment, Amendment 1 (1992)
16. West Virginia Landowners Protection Amendment, Amendment 3 (1992)
17. West Virginia Exemption of Bank Deposits and Money From Taxation Amendment, Amendment 1 (1958)
18. West Virginia Taxation and Finance Amendment, Amendment 3 (1956)
19. West Virginia Amendment 2, Authorize Tax Exemptions for Vehicles and Personal Property Used for Business Measure (2022)

## Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms West Virginia taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Tax policy in West Virginia - Google News

## See also[edit]

* West Virginia
* West Virginia state budget and finances
* Personal income tax
* Sales tax
* Corporate income tax
* Property tax

## External links[edit]

* Tax Policy Center
* Federation of Tax Administrators
* Tax Foundation

## Footnotes[edit]

1. ↑ West Virginia Legislature, "Constitution of West Virginia," accessed October 17, 2014
2. ↑ Tax Policy Center, "State Tax Collection Shares by Type 2000-2013," June 20, 2014
3. ↑ Brunori, D. (2011). State Tax Policy: A Political Perspective. Washington, D.C.: The Urban Institute Press
4. ↑ 4.0 4.1 Tax Policy Center, "Individual State Income Tax Rates 2000-2017," accessed October 26, 2017
5. ↑ Tax Policy Center, "What is the personal exemption?" accessed December 14, 2015
6. ↑ Internal Revenue Service, "3. Personal Exemptions and Dependents," accessed December 14, 2015
7. ↑ Internal Revenue Service, "Topic 409 - Capital Gains and Losses," August 19, 2014
8. ↑ Tax Foundation, "The High Burden of State and Federal Capital Gains Tax Rates," February 11, 2014
9. ↑ Tax Policy Center, "Capital Gains and Dividends: How are capital gains taxed?" June 22, 2011
10. ↑ The Tax Foundation, "State and local sales tax rates, 2017," accessed October 26, 2017
11. ↑ Tax Policy Center, "Sales Tax Rates 2000-2017," accessed October 26, 2017
12. ↑ Tax Policy Center, "Excise taxes," accessed October 20, 2014
13. ↑ Investopedia, "Excise Tax," accessed October 20, 2014
14. ↑ Tax Foundation, "Excise Taxes," accessed October 20, 2014
15. ↑ Internal Revenue Service, "Excise Tax," accessed October 20, 2014
16. ↑ Investopedia, "Corporate Tax," accessed September 24, 2014
17. ↑ Tax Foundation, "State Corporate Income Tax Rates and Brackets for 2015," accessed October 7, 2015
18. ↑ 18.0 18.1 18.2 Tax Policy Center, "Residential Property Taxes in the United States," November 18, 2013
19. ↑ 19.0 19.1 Bankrate, "Property taxes explained," February 3, 2000
20. ↑ Investopedia, "Property Tax," accessed September 26, 2014
21. ↑ Tax Foundation, "Facts and Figures 2015: How Does Your State Compare?" accessed October 5, 2015
22. ↑ About.com, "What's the Difference Between an Estate Tax and an Inheritance Tax?" accessed October 16, 2014
23. ↑ Internal Revenue Service, "Estate Tax," updated September 29, 2014
24. ↑ 24.0 24.1 Tax Foundation, "Facts and Figures, 2015," accessed October 6, 2015
25. ↑ 25.0 25.1 U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017

v • e

Budget policy

Budget background|

Government budgets • Cost of state transparency websites • State budget issues • Public employee salaries • Public pensions • States with spending online • Glossary of state budget terms • Total state expenditures • State spending by function as a percent of total expenditures

* * *

State budget and finance pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Tax policy background|

Personal income tax • Sales tax • Corporate income tax • Property tax • Excise taxes • Estate and inheritance taxes • Capital gains tax

* * *

State tax policy pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Comparative analysis of state debt|

Federal outlays to state government (2014-2017) • State tax revenue projections and shortfalls (2020-2021) • Proportion of state government general revenues from the federal government (2014-2018) • State debt per capita (2014-2018) • State unfunded public pension liabilities, 2003-2018

Ballotpedia

About

Overview • What people are saying • Support Ballotpedia • Contact • Contribute • Job opportunities

* * *

Executive: Leslie Graves, Founder and CEO • Gwen Beattie, Chief Operating Officer

Communications: Alison Graves, Director of Communications • Carley Allensworth • Abigail Campbell • Sarah Groat • Nathaniel Harwood • Dillon Redmond
External Relations:  Geoff Pallay, Director of External Relations • Ken Carbullido, Vice President of Election Product and Technology Strategy • Ashley Fleming • Thomas Mardik • Hannah Nelson
Operations: Meghann Olshefski, Director of Operations • Amanda Herbert • Mandy Morris • Caroline Presnell • Kelly Rindfleisch
Tech: Matt Latourelle, Director of Technology Operations • Ryan Burch • Kirsten Corrao • Beth Dellea • Travis Eden • Tate Kamish • Margaret Kearney • Eric Lotto • Joseph Sanchez • Mary Susmitha

Contributors: Scott Rasmussen

* * *

Editorial Content

Josh Altic, Director of Content • Daniel Anderson, Associate Director of Elections & Data • Cory Eucalitto, Associate Director of Features • Ryan Byrne, Managing Editor of Ballot Measures • Mandy McConnell, Managing Editor of News • Doug Kronaizl, Managing Editor of Local Expansion • Abbey Smith, Managing Editor of Elections • Janie Valentine, Managing Editor of Law • Joel Williams, Managing Editor of Events • Joseph Greaney, Managing Editor of Policy • Andrew Bahl • Jaclyn Beran • Marielle Bricker • Joseph Brusgard • Emma Burlingame • Kelly Coyle • Jon Dunn • Victoria Edwards • Thomas Ellis • Nicole Fisher • Thomas Grobben • Brianna Hosea • Molly Kehoe • Tyler King • Glorie Martinez • Norm Leahy, Senior Editor • Nathan Maxwell • Brandon McCauley • Andrew McNair • Ellie Mikus • Mackenzie Murphy • Kaley Platek • Samantha Post • Adam Powell • Annelise Reinwald • Spencer Richardson • Victoria Rose • Briana Ryan • Myj Saintyl • Maddy Salucka • Emma Soukup • Alexis Thacker • Mina Vogel • Samuel Wonacott • Trenton Woodcox • Heather Yates