West Virginia Signs a 5% Income Tax Rate Cut for 2026

The new law lowers all five rates and applies to income earned throughout the 2026 tax year.

By: John Napoletano

Published: March 31, 2026

West Virginia Governor Patrick Morrisey signed Senate Bill 392 on March 31, reducing the state's personal income tax rates by 5% for 2026. The law lowers the top rate from 4.82% to 4.58% and cuts each of the other four rates.

The reduction reaches back to the beginning of the year. Although the law's effective date is June 12, its new rates apply retroactively to taxable years beginning on or after January 1, 2026. For taxpayers using a calendar year, that means the lower rates cover the full year's taxable income.

What Changes in the Tax Rates?

West Virginia keeps its five-bracket structure and existing income thresholds. Each portion of taxable income is taxed at the rate for its bracket. The enacted rates are approximately 95% of their 2025 levels, rounded to two decimal places.

The 5% cut describes the relative reduction in the rates. For example, the highest rate falls by 0.24 percentage points, from 4.82% to 4.58%. The top rate still applies only to income in the highest bracket, rather than to a taxpayer's entire income.

How Much Could a Taxpayer Save?

Consider a single filer with $50,000 in West Virginia taxable income in each year. Using the two statutory schedules, the tax before credits would be:

• 2025: $1,609.50.
• 2026: $1,528.50.

That is an $81 reduction with taxable income held constant. The example uses income after applicable state adjustments, deductions, and exemptions, so $50,000 in salary alone would not produce the same calculation. Changes in a household's income or credits can also affect its final savings.

Which Tax Return Uses the New Rates?

The lower rates apply to the 2026 return, generally filed in 2027. They do not change the rates used on a 2025 return filed during 2026.

Taxpayers reviewing their 2026 estimated payments should use the new schedule when projecting their annual state tax. Withholding and estimated payments are prepayments toward that liability. A rate cut can reduce the tax owed, but the size of a refund also depends on how much was paid during the year.

For the income thresholds by filing status and a worked calculation, see our West Virginia income tax rates and brackets page. Our West Virginia income tax forms page links to available returns and instructions.

Income Tax News Legislation 2026