November 25, 2024
2024-2154 West Virginia law lowers personal income tax rates effective January 1, 2025 West Virginia Governor Jim Justice signed into law S.B. 2033 which, effective January 1, 2025, lowers the graduated income tax rates from a range of 2.36% to 5.12% to a range of 2.2% to 4.82%. The legislation allows for future tax rate cuts if revenue goals are met. Personal income tax rates effective January 1, 2025 Single individuals If the West Virginia taxable income is: | The tax is: | Not over $10,000 | 2.22% of the taxable income | Over $10,000 but not over $25,000 | $222 plus 2.96% of excess over $10,000 | Over $25,000 but not over $40,000 | $666 plus 3.33% of excess over $25,000 | Over $40,000 but not over $60,000 | $1,165.50 plus 4.44% of excess over $40,000 | Over $60,000 | $2,053.50 plus 4.82% of excess over $60,000 |
Married individuals filing separate returns If the West Virginia taxable income is: | The tax is: | Not over $5,000 | 2.22% of the taxable income | Over $5,000 but not over $12,500 | $111 plus 2.96% of excess over $5,000 | Over $12,500 but not over $20,000 | $333 plus 3.33% of excess over $12,500 | Over $20,000 but not over $30,000 | $582.75 plus 4.44% of excess over $20,000 | Over $30,000 | $1,026.75 plus 4.82% of excess over $30,000 |
Ernst & Young LLP insights This is the second personal income tax rate cut in the last two years. In 2023, H.B. 2526 lowered the personal income tax rates to a range of 2.36% to 5.12% effective retroactive to January 1, 2023. (See Tax Alert 2023-0439.) | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Workforce Tax Services - Employment Tax Advisory Services | | Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor |
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