Research Areas
West Virginia
The Facts on West Virginia's Tax Climate
Here are some basic facts on West Virginia's tax system and how it compares to other states:
Tax Freedom Day Arrives on March 31 in West Virginia
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2011, West Virginia taxpayers work until March 31 to pay their total tax bill, ranking it 44th highest nationally. This is 12 days earlier than national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states are; Pennsylvania, April 14 (ranked 13th), Ohio, April 6 (ranked 28th) Virginia, April 12 (ranked 14th) and Kentucky, April 2 (ranked 42nd).
Full study of Tax Freedom Day, nationwide and in each state
West Virginia's State and Local Tax Burden Below National Average
West Virginia's state and local tax burden is currently estimated at 9.4% of income (27th nationally), below the national average of 9.8%. Compared to the 1977 data, West Virginia had a tax burden of 9.7% (29th nationally), decreasing 0.3% overall. Currently West Virginia taxpayers pay $3,034 per capita in state and local taxes.
West Virginia's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
West Virginia's 2012 Business Tax Climate Ranks 23rd
West Virginia ranks 23rd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states rank as follows: Pennsylvania (19th), Ohio (39th), Virginia (26th) and Kentucky (22nd).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index, Ninth Edition (full study)
West Virginia's Individual Income Tax System
West Virginia's income tax system is composed of five brackets with a top rate of 6.5%, kicking in at an income level of $60,000. Among states with personal income taxes, West Virginia's top rate ranks 19th highest nationally. West Virginia's 2008 state-level individual income tax collections were $838 per person, which ranked 27th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
West Virginia's Corporate Income System
West Virginia's corporate tax structure consists of a flat 8.5% rate on all corporate income. Among states that tax corporate income, West Virginia's corporate rate ranks 11th highest nationally. In 2008, state-level corporate tax collections (excluding local taxes) were $297 per capita, which ranked 7th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2009
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006
West Virginia's Sales and Excise Taxes
West Virginia's state and local sales tax rate stands at 6%, slightly above the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,278 per person, which ranks 31st highest nationally. West Virginia's gasoline tax stands at 32.2 cents per gallon, which ranks 11th highest nationally. West Virginia's cigarette tax stands at 55 cents per pack of twenty and ranks 42nd highest nationally. The sales tax was adopted in 1933, gasoline tax in 1923, and the cigarette tax in 1947.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
West Virginia Property Taxes: Among the Lowest
West Virginia is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. West Virginia's localities collected $583.87 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, West Virginia collected $$2.16 per capita during FY 2006, making its combined state/local property taxes $586.03, which ranks 44th nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: West Virginia is a Beneficiary State
West Virginia taxpayers benefit significantly more than the average state from federal spending. Per dollar of federal tax collected, West Virginia citizens received approximately $1.76 in the way of federal spending. This ranks West Virginia 5th highest among all states. This represents a significant rise from 1995, when West Virginia received $1.59 per dollar of taxes in federal spending, ranking it 2nd nationally.
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
