How retirement income is taxed in West Virginia
West Virginia taxes retirement income at progressive rates up to 4.82%. Here's what that means for your retirement plan and how to manage it.
Retirement tax landscape
Social Security is partially exempt. 65% exempt in 2025; 100% exempt in 2026 Retirement account withdrawals get a $8,000/$16,000 exclusion 65+.
Understanding how West Virginia treats each type of retirement income is essential for planning your withdrawals, conversions, and Social Security timing. The interaction between state and federal taxes determines your true after-tax income each year.
What's taxed and what's not
Exempt below certain income thresholds. May become taxable above the threshold.
Partially exempt with deductions or exclusions.
Fully taxable as ordinary income.
Qualified distributions are fully exempt at both the state and federal level.
Tax brackets
West Virginia runs five progressive brackets, with rates from 2.22% to 4.82%. The schedule below switches by filing status; standard deduction is shown beneath each.
| Taxable income | Rate |
|---|---|
| Up to $10,000 | 2.22% |
| $10,000 – $25,000 | 2.96% |
| $25,000 – $40,000 | 3.33% |
| $40,000 – $60,000 | 4.44% |
| Above $60,000 | 4.82% |
| Taxable income | Rate |
|---|---|
| Up to $10,000 | 2.22% |
| $10,000 – $25,000 | 2.96% |
| $25,000 – $40,000 | 3.33% |
| $40,000 – $60,000 | 4.44% |
| Above $60,000 | 4.82% |
| Taxable income | Rate |
|---|---|
| Up to $10,000 | 2.22% |
| $10,000 – $25,000 | 2.96% |
| $25,000 – $40,000 | 3.33% |
| $40,000 – $60,000 | 4.44% |
| Above $60,000 | 4.82% |
Strategies to reduce your tax burden
The $8,000/$16,000 retirement exclusion for 65+ provides meaningful relief. Roth conversions before 65 avoid state tax entirely. Federal tax planning (withdrawal sequencing and SS timing) drives the primary savings opportunity.
Roth conversions before retirement. Converting traditional IRA balances to Roth during lower-income years means paying West Virginia tax now at lower rates, then taking tax-free Roth withdrawals later. See the full Roth conversion strategy guide.
Withdrawal sequencing. The order you draw from different accounts each year matters. Drawing from taxable brokerage accounts before tapping tax-deferred accounts can keep your West Virginia ordinary income lower. Read more in the tax-efficient withdrawal sequence.
Social Security timing. Optimizing when you claim Social Security affects both your federal and state tax picture. See the Social Security timing decision.
Modeling your retirement taxes
The interaction between West Virginia's tax rules and federal taxes is too complex to estimate by hand. A year-by-year projection shows your actual tax burden for every year of retirement.
Drawdown Arc's projection engine includes West Virginia's full bracket structure, standard deduction, and retirement income exemptions. Set your state to West Virginia and enter your account balances, pension, and Social Security timing: the projection shows your West Virginia state tax alongside federal tax for every year.
State tax modeling is a Pro feature. The free calculator shows your full federal tax projection: upgrade to Pro to add West Virginia (or any of the 50 states + DC) to your model.