14 April 2026 West Virginia law lowers personal income tax rate retroactive to January 1, 2026; updated withholding formula is now available On March 31, 2026, West Virginia Governor Patrick Morrisey approved S.B. 392, which, effective retroactive to January 1, 2026, lowers the top marginal personal income tax rate from 4.82% to 4.58% and similarly reduces each lower bracket's tax rate by roughly 5%. The highest withholding rate is now 4.58%. The West Virginia Tax Division has issued an updated withholding formula reflecting the newly reduced tax rates, which are effective immediately. This is the third consecutive reduction in West Virginia's individual income tax rates. Under H.B. 2526, the top income tax rate was lowered from 6.5% to 5.12% retroactive to January 1, 2023. Effective January 1, 2025, S.B. 2033 further lowered the tax rate from 5.12% to 4.82%. Employers should consider notifying employees of income tax rate reduction and suggest they review IT-104, Employee's Withholding/Exemption Certificate.
Document ID: 2026-0864 | ||||
