West Virginia retirement taxes at a glance (2026)
| State income tax | Graduated, top rate 4.58%West Virginia has a graduated income tax. A 5% across-the-board cut for 2026 (SB 392) brings the top rate to about 4.58%, down from 4.82% in 2025. |
|---|---|
| Social Security | Not taxedFrom tax year 2026, all Social Security benefits are exempt regardless of income, completing a phase-out (35% in 2024, 65% in 2025, 100% in 2026) for filers above $50,000 (single) or $100,000 (joint) AGI. |
| Pensions | Partly taxedPrivate pensions are taxed. Filers age 65+ or permanently disabled can take a senior modification of up to $8,000, or their other itemized modifications if larger. Exclusion: up to $8,000 (age 65+). |
| 401(k) and IRA withdrawals | Partly taxedIRA and 401(k) withdrawals are taxed, with only the $8,000 senior modification for filers 65+ as an offset. |
| Government pensions | Partly taxedWest Virginia police, firefighter, State Police, and deputy sheriff pensions are fully exempt; PERS, teacher, and federal pensions get a $2,000 per-person modification. |
| Military retirement pay | Not taxedMilitary retirement pay is fully exempt. |
| Estate tax | No |
| Inheritance tax | No |
| Property tax help for seniors | The homestead exemption removes $20,000 of assessed value for homeowners age 65+ or permanently disabled, with no income test. |
Recent changes and good to know
- 2026 is the first year Social Security is fully exempt for all incomes.
- SB 392 (2026 Acts ch. 277) cut personal income tax rates; it was approved March 31, 2026. The 4.58% top rate comes from secondary sources and was not confirmed on a WV Tax Division rate table.
How to lower your retirement taxes in West Virginia
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in West Virginia too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does West Virginia tax retirement income?
Partly: from 2026 West Virginia does not tax Social Security or military retirement, but it taxes most pensions and IRA/401(k) income beyond an $8,000 senior modification.
Does West Virginia tax Social Security?
From tax year 2026, all Social Security benefits are exempt regardless of income, completing a phase-out (35% in 2024, 65% in 2025, 100% in 2026) for filers above $50,000 (single) or $100,000 (joint) AGI.
Does West Virginia tax pensions?
Private pensions are taxed. Filers age 65+ or permanently disabled can take a senior modification of up to $8,000, or their other itemized modifications if larger.
Does West Virginia tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals are taxed, with only the $8,000 senior modification for filers 65+ as an offset.
Does West Virginia tax military retirement pay?
Military retirement pay is fully exempt.
Sources (last verified 2026)
- Social Security Modification — West Virginia Tax Division (2026)
- SB 392 (2026) bill history — West Virginia Legislature (2026)
- State Individual Income Tax Rates and Brackets, 2026 — Tax Foundation (2026)
- West Virginia Retirement Income Tax: A Senior's Guide (2026) — Brevy Care (2026)
- Does West Virginia Tax Retirement Income? 2026 — Taxstra (2026)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.