5% Income Tax Rate Cut

tax.wv.gov

Published June 12th, 2026

Detected April 2nd, 2026

Summary

West Virginia Tax Division announces implementation of SB 392, a 5% income tax cut codified as W. Va. Code § 11-21-4j. The rate reduction is effective June 12, 2026 and retroactive to January 1, 2026, affecting all West Virginia individual taxpayers and requiring updated employer withholding tables.

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What changed

West Virginia codified SB 392 as W. Va. Code § 11-21-4j, implementing a 5% income tax rate cut effective June 12, 2026, retroactive to January 1, 2026. New tax brackets apply to individuals, heads of households, married filing jointly, estates and trusts, and married filing separately, with rates ranging from 2.11% on the first bracket to 4.58% on income exceeding $60,000 ($30,000 for married filing separately). Withholding tables have been updated for the 2026 tax year, with the traditional two-earner table adjusted to account for the retroactive nature of the reduction.

Employers must update their withholding tax tables using the revised IT-100.2.A (Percentage Method) or IT-100.2.B (Table Method) documents effective June 12, 2026. The retroactive effective date of January 1, 2026 means adjusted withholdings should be applied to payroll from that date forward. Employees should file new IT-104 withholding certificates to adjust exemptions if needed.

What to do next

Update withholding tax tables using revised IT-100.2.A (Percentage Method) or IT-100.2.B (Table Method)
Distribute updated IT-104 Employee's Withholding/Exemption Certificate forms to employees
Adjust payroll systems to reflect new tax brackets retroactive to January 1, 2026

Source document (simplified)

☰ Open Menu ☰ Open Menu West Virginia Tax Division > Individuals > 2026 Income Tax Rate Cut

2026 Income Tax Rate Cut

During the 2026 Legislative Session, Governor Morrisey promoted SB 392 to deliver an across the board income tax rate cut. It was passed and signed into law on March 31, 2026.

Effective June 12, 2026, W. Va. Code § 11-21-4j will be codified to reflect a 5% income tax cut for all West Virginians retroactive to January 1, 2026.

Please see the adjusted tax rates and withholding tables below:

Individuals

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
2.11% of taxable income
Over $10,000 but not over $25,000
$211.00 plus 2.81% of the excess over $10,000
Over $25,000 but not over $40,000
$632.50 plus 3.16% of excess over $25,000
Over $40,000 but not over $60,000
$1,106.50 plus 4.22% of excess over $40,000
Over $60,000
$1,950.50 plus 4.58% of excess over $60,000
For married individuals filing separate returns:
If the WV Taxable Income is:
The tax is:
Not over $5,000
2.11% of taxable income
Over $5,000 but not over $12,500
$105.50 plus 2.81% of excess over $5,000
Over $12,500 but not over $20,000
$316.25 plus 3.16% of excess over $12,500
Over $20,000 but not over $30,000
$553.25 plus 4.22% of excess over $20,000
Over $30,000
$975.25 plus 4.58% of excess over $30,000

Employers

The withholding tax tables have been updated for the 2026 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.